Formosa Plastics Corporation produces and sells intermediate raw materials for plastics in Taiwan, Mainland China, and internationally. More Details
Flawless balance sheet with moderate growth potential.
Share Price & News
How has Formosa Plastics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1301 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 1301's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 1301 underperformed the TW Chemicals industry which returned 39.5% over the past year.
Return vs Market: 1301 underperformed the TW Market which returned 66.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Formosa Plastics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StWill The ROCE Trend At Formosa Plastics (TPE:1301) Continue?
1 month ago | Simply Wall StAre Investors Undervaluing Formosa Plastics Corporation (TPE:1301) By 34%?
2 months ago | Simply Wall StFormosa Plastics (TPE:1301) Has Compensated Shareholders With A Respectable 53% Return On Their Investment
Is Formosa Plastics undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 1301 (NT$103) is trading above our estimate of fair value (NT$96.38)
Significantly Below Fair Value: 1301 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 1301 is poor value based on its PE Ratio (32.7x) compared to the TW Chemicals industry average (21x).
PE vs Market: 1301 is poor value based on its PE Ratio (32.7x) compared to the TW market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: 1301 is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 1301 is overvalued based on its PB Ratio (2x) compared to the TW Chemicals industry average (1.4x).
How is Formosa Plastics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1301's forecast earnings growth (32.4% per year) is above the savings rate (0.8%).
Earnings vs Market: 1301's earnings (32.4% per year) are forecast to grow faster than the TW market (16.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 1301's revenue (8.1% per year) is forecast to grow slower than the TW market (10.7% per year).
High Growth Revenue: 1301's revenue (8.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1301's Return on Equity is forecast to be low in 3 years time (11.6%).
How has Formosa Plastics performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1301 has high quality earnings.
Growing Profit Margin: 1301's current net profit margins (10.8%) are lower than last year (17.9%).
Past Earnings Growth Analysis
Earnings Trend: 1301's earnings have declined by 6.8% per year over the past 5 years.
Accelerating Growth: 1301's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1301 had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Chemicals industry average (5.7%).
Return on Equity
High ROE: 1301's Return on Equity (6%) is considered low.
How is Formosa Plastics's financial position?
Financial Position Analysis
Short Term Liabilities: 1301's short term assets (NT$165.6B) exceed its short term liabilities (NT$68.3B).
Long Term Liabilities: 1301's short term assets (NT$165.6B) exceed its long term liabilities (NT$78.5B).
Debt to Equity History and Analysis
Debt Level: 1301's debt to equity ratio (27.4%) is considered satisfactory.
Reducing Debt: 1301's debt to equity ratio has reduced from 29.8% to 27.4% over the past 5 years.
Debt Coverage: 1301's debt is well covered by operating cash flow (34.5%).
Interest Coverage: 1301 earns more interest than it pays, so coverage of interest payments is not a concern.
What is Formosa Plastics's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1301's dividend (4.27%) is higher than the bottom 25% of dividend payers in the TW market (2%).
High Dividend: 1301's dividend (4.27%) is low compared to the top 25% of dividend payers in the TW market (4.82%).
Stability and Growth of Payments
Stable Dividend: 1301's dividend payments have been volatile in the past 10 years.
Growing Dividend: 1301's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (139.8%), 1301's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1301's dividends in 3 years are forecast to be covered by earnings (75% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Jaing-Nan Lin, also known as Jason, has been President of Formosa Plastics Corporation, U.S.A. since August 11, 2015. Mr. Lin serves as the Chairman of Formosa Plastics Corporation and served as its Se...
Experienced Management: 1301's management team is seasoned and experienced (5.7 years average tenure).
Experienced Board: 1301's board of directors are seasoned and experienced ( 14.8 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Formosa Plastics Corporation's company bio, employee growth, exchange listings and data sources
- Name: Formosa Plastics Corporation
- Ticker: 1301
- Exchange: TSEC
- Founded: 1954
- Industry: Commodity Chemicals
- Sector: Materials
- Market Cap: NT$655.671b
- Shares outstanding: 6.37b
- Website: https://www.fpc.com.tw
- Formosa Plastics Corporation
- No. 100, Shuiguan Road
- Renwu District
Formosa Plastics Corporation produces and sells intermediate raw materials for plastics in Taiwan, Mainland China, and internationally. Its plastic products include PVC resins, high density polyethylene re...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/10 08:30|
|End of Day Share Price||2021/04/09 00:00|
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.