Fact based stock research
Formosa Laboratories, (TSEC:4746)
TW0004746003
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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.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Formosa Laboratories, stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Formosa Laboratories, (Pharmaceuticals, Taiwan) shares have much better financial characteristics than comparable stocks. Shares of Formosa Laboratories, are a good value (attractively priced) with a consolidated Value Rank of 80 (better than 80% of alternatives), show above-average growth (Growth Rank of 96) but are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Formosa Laboratories,'s financial characteristics. As the company Formosa Laboratories,'s key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 80) and above-average growth (Obermatt Growth Rank of 96), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 39) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Taiwan |
| Industry | Pharmaceuticals |
| Index | FTSE Taiwan |
| Size class | Small |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Formosa Laboratories,
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 70 |
|
93 |
|
76 |
|
80 |
|
| GROWTH | ||||||||
| GROWTH | 10 |
|
61 |
|
89 |
|
96 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
18 |
|
24 |
|
39 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
70 |
|
80 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
65 |
|
92 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Formosa Laboratories, (Pharmaceuticals, Taiwan) shares have much better financial characteristics than comparable stocks. Shares of Formosa Laboratories, are a good value (attractively priced) with a consolidated Value Rank of 80 (better than 80% of alternatives), show above-average growth (Growth Rank of 96) but are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Formosa Laboratories,'s financial characteristics. As the company Formosa Laboratories,'s key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 80) and above-average growth (Obermatt Growth Rank of 96), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 39) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 70 |
|
93 |
|
76 |
|
80 |
|
| GROWTH | ||||||||
| GROWTH | 10 |
|
61 |
|
89 |
|
96 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
18 |
|
24 |
|
39 |
|
| COMBINED | ||||||||
| COMBINED | 31 |
|
59 |
|
82 |
|
94 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 80 (better than 80% compared with alternatives) for 2024, Formosa Laboratories, shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Formosa Laboratories,. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 83 which means that the stock price compared with what market professionals expect for future profits is lower than for 83% of comparable companies, indicating a good value concerning Formosa Laboratories,'s profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56, and for Dividend Yield with a Dividend Yield Rank of 96. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 59% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 41). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 80, is a buy recommendation based on Formosa Laboratories,'s stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Formosa Laboratories, has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Formosa Laboratories, shares. 9. 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 | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 69 |
|
56 |
|
43 |
|
41 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 100 |
|
97 |
|
81 |
|
83 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 90 |
|
84 |
|
51 |
|
56 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
83 |
|
91 |
|
96 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 70 |
|
93 |
|
76 |
|
80 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 96 (better than 96% compared with alternatives) for 2024, Formosa Laboratories, shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Formosa Laboratories,. Sales Growth has a rank of 86, which means that, currently, professionals expect the company to grow more than 86% of its competitors. Profit Growth with a rank of 100 is also above average. But Capital Growth has only a rank of 48, and Stock Returns with 46 are also below-average. Stock returns for Formosa Laboratories, have recently been below 54% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 96, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Formosa Laboratories,. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 5 |
|
75 |
|
92 |
|
86 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 64 |
|
3 |
|
8 |
|
100 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
33 |
|
92 |
|
48 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 80 |
|
95 |
|
83 |
|
46 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 10 |
|
61 |
|
89 |
|
96 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 39 (better than 39% compared with alternatives), the company Formosa Laboratories, has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Formosa Laboratories, 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 Laboratories,. Liquidity is at 49, meaning that the company generates less profit to service its debt than 51% 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 27, meaning the company has an above-average debt-to-equity ratio. It has more debt than 73% of its competitors. Finally, Refinancing is at a rank of 46 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 54% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 39 (worse than 61% compared with alternatives), Formosa Laboratories, has a financing structure that is 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 Laboratories, because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 2 |
|
12 |
|
21 |
|
27 |
|
| REFINANCING | ||||||||
| REFINANCING | 14 |
|
51 |
|
47 |
|
46 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 2 |
|
12 |
|
30 |
|
49 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
18 |
|
24 |
|
39 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
66 |
|
87 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
6 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
94 |
|
66 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
n/a |
|
100 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
70 |
|
80 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Formosa Laboratories, from November 14, 2024.
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