TSEC:6505

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Formosa Petrochemical

Executive Summary

Formosa Petrochemical Corporation engages in the petrochemical and public utility businesses in Taiwan, the Philippines, Singapore, Malaysia, the People’s Republic of China, Korea, and internationally.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Formosa Petrochemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6505's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.5%

6505

0.8%

TW Oil and Gas

4.7%

TW Market


1 Year Return

-18.0%

6505

-20.7%

TW Oil and Gas

10.4%

TW Market

Return vs Industry: 6505 exceeded the TW Oil and Gas industry which returned -22% over the past year.

Return vs Market: 6505 underperformed the TW Market which returned 9.5% over the past year.


Shareholder returns

6505IndustryMarket
7 Day7.5%0.8%4.7%
30 Day10.9%4.7%7.0%
90 Day8.3%-1.1%1.9%
1 Year-14.5%-18.0%-16.4%-20.7%15.4%10.4%
3 Year2.0%-11.9%-9.8%-22.3%26.2%11.5%
5 Year49.6%22.2%-23.9%-36.7%50.5%23.1%

Price Volatility Vs. Market

How volatile is Formosa Petrochemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Formosa Petrochemical undervalued compared to its fair value and its price relative to the market?

12.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6505 (NT$94.3) is trading below our estimate of fair value (NT$108.23)

Significantly Below Fair Value: 6505 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6505 is poor value based on its PE Ratio (51.1x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: 6505 is poor value based on its PE Ratio (51.1x) compared to the TW market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: 6505 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 6505 is overvalued based on its PB Ratio (3x) compared to the XA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Formosa Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

41.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6505's forecast earnings growth (41.8% per year) is above the savings rate (0.9%).

Earnings vs Market: 6505's earnings (41.8% per year) are forecast to grow faster than the TW market (15.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6505's revenue (7.5% per year) is forecast to grow faster than the TW market (7.2% per year).

High Growth Revenue: 6505's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6505's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Formosa Petrochemical performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6505 has high quality earnings.

Growing Profit Margin: 6505's current net profit margins (2.9%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 6505's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: 6505's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6505 had negative earnings growth (-65.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-3.6%).


Return on Equity

High ROE: 6505's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Formosa Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 6505's short term assets (NT$195.7B) exceed its short term liabilities (NT$35.3B).

Long Term Liabilities: 6505's short term assets (NT$195.7B) exceed its long term liabilities (NT$27.1B).


Debt to Equity History and Analysis

Debt Level: 6505's debt to equity ratio (5.8%) is considered satisfactory.

Reducing Debt: 6505's debt to equity ratio has reduced from 71.2% to 5.8% over the past 5 years.

Debt Coverage: 6505's debt is well covered by operating cash flow (175.9%).

Interest Coverage: 6505 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Formosa Petrochemical's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6505's dividend (3.08%) is higher than the bottom 25% of dividend payers in the TW market (2.49%).

High Dividend: 6505's dividend (3.08%) is low compared to the top 25% of dividend payers in the TW market (5.53%).


Stability and Growth of Payments

Stable Dividend: 6505's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6505's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (157.1%), 6505's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6505's dividends in 3 years are forecast to be covered by earnings (77.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Tsao Mihn

8.58yrs

Tenure

Mr. Tsao Mihn has been the President of Formosa Petrochemical Corporation since November 9, 2011. Mr. Mihn previously served as the Vice President of CPC Corp., a Taiwanese state-owned refiner. Mr. Mihn ha ...


Leadership Team

NamePositionTenureCompensationOwnership
Bao-Lang Chen
Chairman of the Board8.75yrsno datano data
Tsao Mihn
President & Director8.58yrsno datano data
Chien-Tang Tsai
Chief Financial Officer5.25yrsno datano data
Tsung-Lin Chen
Accounting Supervisor5.08yrsno datano data
Wen-Chiao Wang
MD & Director14yrsno data0.029% NT$263.4m
Keh-Yen Lin
Executive VP & Director14yrsno data0.00068% NT$6.1m
C. P. Chang
MD & Independent Director16.5yrsno datano data
Jui-Shih Chen
Senior VP of Olefins Division & Director11yrsno data0.00011% NT$988.1k
Ruey-Yu Wang
MD & Director25yrsno data0.0042% NT$37.6m
Wen-Yuan Wong
MD & Director11yrsno data0.073% NT$654.9m

6.2yrs

Average Tenure

Experienced Management: 6505's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bao-Lang Chen
Chairman of the Board8.75yrsno datano data
Tsao Mihn
President & Director8.58yrsno datano data
Wen-Chiao Wang
MD & Director14yrsno data0.029% NT$263.4m
Keh-Yen Lin
Executive VP & Director14yrsno data0.00068% NT$6.1m
C. P. Chang
MD & Independent Director16.5yrsno datano data
Jui-Shih Chen
Senior VP of Olefins Division & Director11yrsno data0.00011% NT$988.1k
Ruey-Yu Wang
MD & Director25yrsno data0.0042% NT$37.6m
Wen-Yuan Wong
MD & Director11yrsno data0.073% NT$654.9m
Te-Hsiung Hsu
VP of Oil Products Division & Director2yrsno data0.000080% NT$718.6k
Wen-Yu Cheng
VP of Olefins Division & Director2yrsno data0.000020% NT$179.7k

11.0yrs

Average Tenure

Experienced Board: 6505's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Formosa Petrochemical Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Formosa Petrochemical Corporation
  • Ticker: 6505
  • Exchange: TSEC
  • Founded: 1992
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: NT$898.298b
  • Shares outstanding: 9.53b
  • Website: https://www.fpcc.com.tw

Location

  • Formosa Petrochemical Corporation
  • 1-1, Formosa Plastics Group Ind. Zn
  • Yunlin County
  • Mailiao
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6505TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDDec 2003

Biography

Formosa Petrochemical Corporation engages in the petrochemical and public utility businesses in Taiwan, the Philippines, Singapore, Malaysia, the People’s Republic of China, Korea, and internationally. The company produces and sells petroleum and petrochemical products. Its products include gasoline; diesel; liquefied petroleum gas; jet fuel/kerosene; naphtha; petrochemical raw materials, such as ethylene, propylene, butadiene, and riffinate-1; fuel oil/asphalt/sulfur fuel oil; base oil; and lubricants. The company also explores and produces oil and gas; produces and sells water, electricity, and steam; and leases ships, as well as offers transportation services. Formosa Petrochemical Corporation was founded in 1992 and is headquartered in Mailiao, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 16:02
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.