Fact based stock research
Formosa Chemicals & Fibre (TSEC:1326)

TW0001326007

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Formosa Chemicals & Fibre stock research in summary

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ANALYSIS: With an Obermatt Combined Rank of 1 (worse than 99% compared with investment alternatives), Formosa Chemicals & Fibre (Commodity Chemicals, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Formosa Chemicals & Fibre are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives), show below-average growth (Growth Rank of 5), and are riskily financed (Safety Rank of 14), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 1, is a sell recommendation based on Formosa Chemicals & Fibre's financial characteristics. As the company Formosa Chemicals & Fibre's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 29), low growth (Obermatt Growth Rank of 5), and risky financing practices (Obermatt Safety Rank of 14), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	29
Growth Rank	5
Safety Rank	14
Combined Rank	1

Country	Taiwan
Industry	Commodity Chemicals
Index	Human Rights, FTSE Taiwan
Size class	Medium

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Formosa Chemicals & Fibre

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	19	21	37	29
GROWTH
GROWTH	3	69	1	5
SAFETY
SAFETY	34	20	17	14
SENTIMENT
SENTIMENT	1	43	24	^new
360° VIEW
360° VIEW	1	30	7	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Formosa Chemicals & Fibre is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	19	21	37	29
GROWTH
GROWTH	3	69	1	5
SAFETY
SAFETY	34	20	17	14
COMBINED
COMBINED	1	28	9	1

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Formosa Chemicals & Fibre the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), Formosa Chemicals & Fibre shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Formosa Chemicals & Fibre. Price-to-Sales (P/S) is 60, which means that the stock price compared with what market professionals expect for future sales is lower than for 60% of comparable companies, indicating a good value concerning Formosa Chemicals & Fibre's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 69% of alternatives (31% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 19 are lower than average (dividends are expected to be lower than 81% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 1, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on Formosa Chemicals & Fibre's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Formosa Chemicals & Fibre may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	25	25	55	60
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	21	13	5	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	38	38	79	69
DIVIDEND YIELD
DIVIDEND YIELD	27	36	25	19
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	21	37	29

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Formosa Chemicals & Fibre; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 5 (better than 5% compared with alternatives), Formosa Chemicals & Fibre shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Formosa Chemicals & Fibre. Only Capital Growth has a good rank of 88, which means that currently professionals expect the company to grow its invested capital more than 1% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 6 which means that currently professionals expect the company to grow less than 94% of its competitors. Profit Growth with a rank of 1 and Stock Returns with a rank of 1 are also low (below 99% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 5, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Formosa Chemicals & Fibre is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	4	41	10	6
PROFIT GROWTH
PROFIT GROWTH	12	82	6	1
CAPITAL GROWTH
CAPITAL GROWTH	52	98	41	88
STOCK RETURNS
STOCK RETURNS	33	19	5	1
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	3	69	1	5

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Formosa Chemicals & Fibre.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% compared with alternatives), the company Formosa Chemicals & Fibre has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Formosa Chemicals & Fibre is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Formosa Chemicals & Fibre. Liquidity is at 20, meaning that the company generates less profit to service its debt than 80% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 40, meaning the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. Finally, Refinancing is at a rank of 25 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 75% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 14 (worse than 86% compared with alternatives), Formosa Chemicals & Fibre has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Formosa Chemicals & Fibre because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	60	54	46	40
REFINANCING
REFINANCING	49	35	29	25
LIQUIDITY
LIQUIDITY	28	12	14	20
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	34	20	17	14

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Formosa Chemicals & Fibre and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	2	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	4	60	28	^new
PRO HOLDINGS
PRO HOLDINGS	39	25	34	^new
MARKET PULSE
MARKET PULSE	15	89	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	1	43	24	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Formosa Chemicals & Fibre.
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