# Formosa Petrochemical (6505.TW)

Canonical: https://gigainvestors.com/s/6505.TW

Analysis as of: 2026-10-16T07:34:10.302Z. Financial observations: FY2002–FY2025.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 111.50 per share; close as of 2026-10-15.

Estimated value: low TWD 40.01 per share, central TWD 42.54 per share, high TWD 45.90 per share. Buy at or below the central value TWD 42.54 per share. Valuation as of 2026-10-16T07:34:10.302Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 0

- Operating margin variation: 0.85×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.15×

- FY2018: 0.09×

- FY2019: 0.07×

- FY2020: 0.02×

- FY2021: 0.10×

- FY2022: 0.02×

- FY2023: 0.02×

- FY2024: -0.00×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.8%

- ROIC, second-lowest year: 3.2%

- Typical minus recent gross margin: 2.0 pp

- Typical gross margin (annual median): 5.5%

- Recent gross margin (lower of latest and 3-year median): 3.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 12.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 26.3%

- FY2017: 27.6%

- FY2018: 20.5%

- FY2019: 14.3%

- FY2020: 3.2%

- FY2021: 19.2%

- FY2022: 5.3%

- FY2023: 5.0%

- FY2024: -0.2%

- FY2025: 3.3%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.21×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 123B

- Net income, five-year total: TWD 102B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: 17.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.44×

- FY2023: 1.31×

- FY2024: 1.45×

- FY2025: 1.41×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 26.3% vs 3.3%

- Per-share earnings: 7.95 to 1.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: TWD -615B

- Cumulative retained earnings: TWD -11B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -22.4%

- Per-share value change: TWD -6.90

- Per-share value, starting three-year median: TWD 7.95

- Per-share value, ending three-year median: TWD 1.04

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: TWD 61B

- Cumulative net income, 10 years: TWD 362B

- ROIC, first three-year median: 26.3%

- ROIC, last three-year median: 3.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 7.95

- FY2017: TWD 8.43

- FY2018: TWD 6.30

- FY2019: TWD 3.87

- FY2020: TWD 0.78

- FY2021: TWD 5.18

- FY2022: TWD 1.51

- FY2023: TWD 2.30

- FY2024: TWD 0.63

- FY2025: TWD 1.04

### accounting: pass

- Sloan accruals: -8.4%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.2%

- FY2017: 0.1%

- FY2018: -4.2%

- FY2019: -1.8%

- FY2020: -7.4%

- FY2021: 3.0%

- FY2022: 5.6%

- FY2023: -5.6%

- FY2024: -0.9%

- FY2025: -8.4%

## Holders

## Price story

Price needs cash profits to grow 19.5% a year for ten years · sales -5.7%

Story as of 2026-10-16T09:59:59.403Z; price observation 2026-10-15.

Price needs cash profits to grow 19.5% a year for ten years

### Sales · FY2024–2025

sales -5.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: TWD 546B 

- FY2017: TWD 624B 

- FY2018: TWD 768B 

- FY2019: TWD 646B 

- FY2020: TWD 415B 

- FY2021: TWD 620B 

- FY2022: TWD 848B 

- FY2023: TWD 713B 

- FY2024: TWD 664B 

- FY2025: TWD 626B 

### Gross margin · FY2025

gross margin 3.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 17.7% 

- FY2017: 16.4% 

- FY2018: 10.1% 

- FY2019: 7.4% 

- FY2020: 3.1% 

- FY2021: 10.6% 

- FY2022: 1.9% 

- FY2023: 3.6% 

- FY2024: 1.6% 

- FY2025: 3.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas refining & marketing; annual sales are TWD 626.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2025: revenue 626159096000; grossProfit 22068303000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 6505.TW: Formosa Petrochemical Corporation, together with its subsidiaries, engages in the production and sale of petroleum products and petrochemical raw materials in Taiwan, Australia, South Korea, the Philippines, Singapore, Malaysia, Mainland China, and internationally. The company offers gasoline, diesel, jet fuel/kerosene, fuel oil/asphalt/sulfur, naphtha, base oil, liquified petroleum gas, and lubricants. It also provides ethylene, propylene, butadiene, and BTX; and electricity, steam, and other utilities products. Formosa Petrochemical Corporation was founded in 1992 and is headquartered in Mailiao, Taiwan.

### Why customers stay

Margins ranged from 1.6% to 3.6% during 2023–25; it earns 9.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2023: grossProfit / revenue = 3.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2024: grossProfit / revenue = 1.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2025: grossProfit / revenue = 3.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); 10-year return on capital observations [[2016,0.2631427112725928],[2017,0.27615076266624555],[2018,0.2045863657619259],[2019,0.1427471332638168],[2020,0.032448189827393344],[2021,0.19151067737858501],[2022,0.05280083356027817],[2023,0.05020015435388185],[2024,-0.0021188048507486883],[2025,0.0334425513231589]]; median 0.09777398341204749. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2016: growth capex 0; upkeep 4655059000; owner earnings 91706641000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2017: growth capex 0; upkeep 8969159000; owner earnings 88030213000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2018: growth capex 0; upkeep 12380951000; owner earnings 60927807000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2019: growth capex 0; upkeep 7718853000; owner earnings 39738980800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2020: growth capex 0; upkeep 8991221000; owner earnings 9802393400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2021: growth capex 0; upkeep 10550179000; owner earnings 50712146400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2022: growth capex 0; upkeep 7647311000; owner earnings 20775666000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2023: growth capex 0; upkeep 8390300000; owner earnings 28774019000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2024: growth capex 0; upkeep 9483704000; owner earnings 8676139000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); FY2025: growth capex 0; upkeep 6473419000; owner earnings 13906770800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); Dividend observations: [[2016,38116631000],[2017,57155365000],[2018,60013090000],[2019,45724366000],[2020,27625058000],[2021,5620656000],[2022,36197781000],[2023,10479310000],[2024,19051842000],[2025,7619482000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 88% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 6505.TW SharesStats.PercentInsiders = 88 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19.5% yearly over ten years; actual decline was 14.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:10.302Z); Ten-year compound average after fade. Initial solved rate 0.2705430511651151. Price 111.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 6.807707105619385 → FY2025 1.4687829939016037. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 105.50 per share

- 2016-11: TWD 107.50 per share

- 2016-12: TWD 112.00 per share

- 2017-01: TWD 106.50 per share

- 2017-02: TWD 107.00 per share

- 2017-03: TWD 106.00 per share

- 2017-04: TWD 105.50 per share

- 2017-05: TWD 108.00 per share

- 2017-06: TWD 105.00 per share

- 2017-07: TWD 106.00 per share

- 2017-08: TWD 106.50 per share

- 2017-09: TWD 106.00 per share

- 2017-10: TWD 105.50 per share

- 2017-11: TWD 106.00 per share

- 2017-12: TWD 115.50 per share

- 2018-01: TWD 124.00 per share

- 2018-02: TWD 117.00 per share

- 2018-03: TWD 118.50 per share

- 2018-04: TWD 121.50 per share

- 2018-05: TWD 121.50 per share

- 2018-06: TWD 122.50 per share

- 2018-07: TWD 120.50 per share

- 2018-08: TWD 126.00 per share

- 2018-09: TWD 148.00 per share

- 2018-10: TWD 122.00 per share

- 2018-11: TWD 111.50 per share

- 2018-12: TWD 109.00 per share

- 2019-01: TWD 107.50 per share

- 2019-02: TWD 116.50 per share

- 2019-03: TWD 115.50 per share

- 2019-04: TWD 114.50 per share

- 2019-05: TWD 116.00 per share

- 2019-06: TWD 110.50 per share

- 2019-07: TWD 106.00 per share

- 2019-08: TWD 97.20 per share

- 2019-09: TWD 98.20 per share

- 2019-10: TWD 96.90 per share

- 2019-11: TWD 96.00 per share

- 2019-12: TWD 97.50 per share

- 2020-01: TWD 89.90 per share

- 2020-02: TWD 86.10 per share

- 2020-03: TWD 81.40 per share

- 2020-04: TWD 89.70 per share

- 2020-05: TWD 87.70 per share

- 2020-06: TWD 88.50 per share

- 2020-07: TWD 81.50 per share

- 2020-08: TWD 82.00 per share

- 2020-09: TWD 80.00 per share

- 2020-10: TWD 78.60 per share

- 2020-11: TWD 90.50 per share

- 2020-12: TWD 99.80 per share

- 2021-01: TWD 89.10 per share

- 2021-02: TWD 100.00 per share

- 2021-03: TWD 96.80 per share

- 2021-04: TWD 103.50 per share

- 2021-05: TWD 100.00 per share

- 2021-06: TWD 106.50 per share

- 2021-07: TWD 97.30 per share

- 2021-08: TWD 97.80 per share

- 2021-09: TWD 99.20 per share

- 2021-10: TWD 100.00 per share

- 2021-11: TWD 95.40 per share

- 2021-12: TWD 95.90 per share

- 2022-01: TWD 96.10 per share

- 2022-02: TWD 97.80 per share

- 2022-03: TWD 94.30 per share

- 2022-04: TWD 91.60 per share

- 2022-05: TWD 96.80 per share

- 2022-06: TWD 93.80 per share

- 2022-07: TWD 84.50 per share

- 2022-08: TWD 83.80 per share

- 2022-09: TWD 82.90 per share

- 2022-10: TWD 83.00 per share

- 2022-11: TWD 84.60 per share

- 2022-12: TWD 80.30 per share

- 2023-01: TWD 83.90 per share

- 2023-02: TWD 85.10 per share

- 2023-03: TWD 85.00 per share

- 2023-04: TWD 86.80 per share

- 2023-05: TWD 86.20 per share

- 2023-06: TWD 84.30 per share

- 2023-07: TWD 80.20 per share

- 2023-08: TWD 79.30 per share

- 2023-09: TWD 80.60 per share

- 2023-10: TWD 79.10 per share

- 2023-11: TWD 85.00 per share

- 2023-12: TWD 80.70 per share

- 2024-01: TWD 74.60 per share

- 2024-02: TWD 74.30 per share

- 2024-03: TWD 69.50 per share

- 2024-04: TWD 72.20 per share

- 2024-05: TWD 67.40 per share

- 2024-06: TWD 64.80 per share

- 2024-07: TWD 64.40 per share

- 2024-08: TWD 56.10 per share

- 2024-09: TWD 52.70 per share

- 2024-10: TWD 48.10 per share

- 2024-11: TWD 40.90 per share

- 2024-12: TWD 34.55 per share

- 2025-01: TWD 36.65 per share

- 2025-02: TWD 38.70 per share

- 2025-03: TWD 36.60 per share

- 2025-04: TWD 34.95 per share

- 2025-05: TWD 38.00 per share

- 2025-06: TWD 36.00 per share

- 2025-07: TWD 43.80 per share

- 2025-08: TWD 40.15 per share

- 2025-09: TWD 40.60 per share

- 2025-10: TWD 44.70 per share

- 2025-11: TWD 52.30 per share

- 2025-12: TWD 47.80 per share

- 2026-01: TWD 53.40 per share

- 2026-02: TWD 54.50 per share

- 2026-03: TWD 55.10 per share

- 2026-04: TWD 56.40 per share

- 2026-05: TWD 51.40 per share

- 2026-06: TWD 55.10 per share

- 2026-07: TWD 70.80 per share

- 2026-08: TWD 73.50 per share

- 2026-09: TWD 97.30 per share

- 2026-10: TWD 119.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 41.09 per share, central TWD 45.02 per share, high TWD 50.26 per share

- FY2017: low TWD 84.05 per share, central TWD 94.25 per share, high TWD 107.83 per share

- FY2018: low TWD 98.83 per share, central TWD 111.33 per share, high TWD 127.97 per share

- FY2019: low TWD 85.33 per share, central TWD 95.90 per share, high TWD 109.97 per share

- FY2020: low TWD 48.55 per share, central TWD 53.79 per share, high TWD 60.76 per share

- FY2021: low TWD 69.05 per share, central TWD 76.83 per share, high TWD 87.20 per share

- FY2022: low TWD 67.26 per share, central TWD 75.51 per share, high TWD 86.50 per share

- FY2023: low TWD 41.69 per share, central TWD 46.24 per share, high TWD 52.30 per share

- FY2024: low TWD 22.64 per share, central TWD 25.22 per share, high TWD 28.64 per share

- FY2025: low TWD 29.51 per share, central TWD 31.95 per share, high TWD 35.20 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:02.006Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.