Formosa Petrochemical Corp (6505) AI Stock Analysis

Formosa Petrochemical Corp

(TWSE:6505)

Select Model

Rating:59Neutral

Price Target:TWD 90.00▼(-1.32% Downside)

Action:initiatedcoverage

Date:11/09/26

Strong balance sheet resilience is the main positive but is offset by weak profitability and bearish technical momentum; reasonable valuation provides some support.

Positive Factors

Low LeverageVery low leverage gives Formosa Petrochemical meaningful financial flexibility across refining and petrochemical cycles. A strong equity base and limited debt burden can help the company withstand weaker spreads while preserving capacity for operations and capital allocation.

Negative Factors

Revenue ContractionThe prolonged revenue decline signals weaker throughput, pricing, or demand conditions across the company’s cyclical markets. Persistent top-line pressure can limit operating leverage, reduce reinvestment capacity, and make future earnings more dependent on a recovery in industry conditions.

Formosa Petrochemical Corp (6505) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 870.67B
Dividend Yield: 1.32%
Average Volume (3M): 31.58M
Price to Earnings (P/E): 11.1
Beta (1Y): -0.01
Revenue Growth: 16.05%
EPS Growth: 1097.89%
Country: TW
Employees: 5,218
Sector: General
Sector Strength: 55
Industry: Oil & Gas Refining & Marketing

Formosa Petrochemical Corp Business Overview & Revenue Model

Company Description

Formosa Petrochemical Corporation (FPC), together with its subsidiary companies, operates extensively across the petrochemical and public utility sectors. The company maintains a significant presence throughout Taiwan, Korea, the Philippines, Singapo...

Formosa Petrochemical Corp Financial Statement Overview

Summary

Fortress balance sheet with minimal debt offers strong stability, but weak volatile profitability and thin refining margins limit the score.

Income Statement

38Negative

Balance Sheet

88Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	652.32B	626.16B	663.82B	712.58B	848.05B	620.06B
Gross Profit	71.86B	22.07B	10.31B	25.90B	16.22B	65.78B
EBITDA	74.91B	22.05B	18.70B	38.42B	33.23B	75.36B
Net Income	54.88B	9.87B	5.97B	21.89B	14.42B	49.40B
Balance Sheet
Total Assets	590.46B	416.46B	371.20B	416.16B	421.78B	458.76B
Cash, Cash Equivalents and Short-Term Investments	219.49B	124.23B	51.21B	96.89B	87.47B	132.33B
Total Debt	22.52B	21.13B	36.34B	32.41B	57.27B	35.01B
Total Liabilities	98.04B	55.22B	68.95B	74.94B	104.50B	96.99B
Stockholders Equity	486.91B	355.79B	296.96B	336.33B	312.49B	357.41B
Cash Flow
Free Cash Flow	21.02B	38.38B	-281.31M	36.99B	-16.83B	24.98B
Operating Cash Flow	30.78B	44.85B	9.20B	45.38B	-9.18B	35.53B
Investing Cash Flow	-1.18B	3.49B	-8.20B	-11.79B	-3.86B	-6.71B
Financing Cash Flow	-17.01B	-23.68B	-16.20B	-36.12B	-15.20B	-7.17B

Formosa Petrochemical Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6505 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1229	76Outperform	TWD 69.58B	15.38	―	4.74%	-3.23%	11.13%
TW:4749	62Neutral	TWD 62.81B	55.74	―	1.14%	19.16%	38.15%
TW:6505	59Neutral	TWD 853.53B	11.13	―	1.32%	16.05%	1097.89%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1717	48Neutral	TWD 74.84B	33.16	―	1.58%	-1.57%	36.18%
TW:1326	45Neutral	TWD 418.20B	24.59	―	0.82%	8.51%	―
TW:1301	40Underperform	TWD 444.97B	42.80	―	0.71%	-11.04%	―

* General Sector Average

Performance Comparison

TW:6505 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6505	Formosa Petrochemical Corp	91.20	39.18	75.33%
TW:1229	Lien Hwa Industrial Holdings Corporation	38.00	-6.46	-14.53%
TW:1301	Formosa Plastics Corporation	70.20	28.05	66.55%
TW:1326	Formosa Chemicals & Fibre Corporation	73.50	39.88	118.65%
TW:1717	Eternal Materials Co., Ltd.	63.00	24.63	64.18%
TW:4749	Advanced Echem Materials Company Limited	703.00	-62.76	-8.20%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Formosa Petrochemical Corp AI Stock Analysis