TSEC:1326

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Formosa Chemicals & Fibre

Executive Summary

Formosa Chemicals & Fibre Corporation produces and sells petrochemical products, nylon fibers, and rayon staple fibers in Taiwan, China, and internationally.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1326 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.0%

1326

4.1%

TW Chemicals

4.7%

TW Market


1 Year Return

-29.7%

1326

-19.2%

TW Chemicals

10.4%

TW Market

Return vs Industry: 1326 underperformed the TW Chemicals industry which returned -19.2% over the past year.

Return vs Market: 1326 underperformed the TW Market which returned 10.4% over the past year.


Shareholder returns

1326IndustryMarket
7 Day5.0%4.1%4.7%
30 Day3.8%3.5%7.0%
90 Day-6.1%-3.8%1.9%
1 Year-25.5%-29.7%-14.7%-19.2%15.4%10.4%
3 Year-0.07%-16.1%5.7%-9.4%26.2%11.5%
5 Year30.2%3.0%25.2%-0.2%50.5%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Formosa Chemicals & Fibre undervalued compared to its fair value and its price relative to the market?

28.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1326 (NT$75.6) is trading above our estimate of fair value (NT$34.57)

Significantly Below Fair Value: 1326 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1326 is poor value based on its PE Ratio (28.2x) compared to the Chemicals industry average (17.9x).

PE vs Market: 1326 is poor value based on its PE Ratio (28.2x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1326 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 1326 is overvalued based on its PB Ratio (1.4x) compared to the TW Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Formosa Chemicals & Fibre forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1326's forecast earnings growth (19.4% per year) is above the savings rate (0.9%).

Earnings vs Market: 1326's earnings (19.4% per year) are forecast to grow faster than the TW market (15.2% per year).

High Growth Earnings: 1326's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1326's revenue (9.2% per year) is forecast to grow faster than the TW market (7.4% per year).

High Growth Revenue: 1326's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1326's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Formosa Chemicals & Fibre performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1326 has high quality earnings.

Growing Profit Margin: 1326's current net profit margins (5.4%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: 1326's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: 1326's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1326 had negative earnings growth (-63.3%) over the past year, making it difficult to compare to the Chemicals industry average (-20%).


Return on Equity

High ROE: 1326's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Formosa Chemicals & Fibre's financial position?


Financial Position Analysis

Short Term Liabilities: 1326's short term assets (NT$201.5B) exceed its short term liabilities (NT$96.9B).

Long Term Liabilities: 1326's short term assets (NT$201.5B) exceed its long term liabilities (NT$54.6B).


Debt to Equity History and Analysis

Debt Level: 1326's debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: 1326's debt to equity ratio has reduced from 48.3% to 31.8% over the past 5 years.

Debt Coverage: 1326's debt is well covered by operating cash flow (39.9%).

Interest Coverage: 1326's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Formosa Chemicals & Fibre's current dividend yield, its reliability and sustainability?

5.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1326's dividend (5.03%) is higher than the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 1326's dividend (5.03%) is low compared to the top 25% of dividend payers in the TW market (5.48%).


Stability and Growth of Payments

Stable Dividend: 1326's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1326's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (141.8%), 1326's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1326's dividends in 3 years are forecast to be covered by earnings (74.1% payout ratio).


Next Steps

Management

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

2.0yrs

Average board tenure


CEO

Wen Chìn Lu

no data

Tenure

Mr. Wen Chìn Lu serves as President and Director at Formosa Chemicals & Fibre Corporation since June 15, 2018. Wen Chìn Lu serves as the President of Formosa ABS Plastics (Ningbo) Co., Ltd. and Formosa Pol ...


Board Members

NamePositionTenureCompensationOwnership
Wen Chìn Lu
President & Directorno datano data0.000060% NT$265.3k
Fu-Yuan Hong
MD & Vice Chairman5yrsno data0.0047% NT$20.7m
Ruey-Yu Wang
MD & Director14.08yrsno data0.32% NT$1.4b
Ing Dar Fang
Executive VP & Director8yrsno datano data
Ruey-Long Chen
MD & Independent Director8yrsno datano data
Chin Hua Pan
VP & Director2yrsno datano data
Tsung Yuan Chang
VP & Director2yrsno data0.000090% NT$398.0k
Ching Fen Lee
Senior VP & Director2yrsno datano data
Wei-Keng Chien
VP & Director2yrsno datano data
Wen-Yuan Wong
Chairmanno datano data2.21% NT$9.8b

2.0yrs

Average Tenure

Experienced Board: 1326's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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 Chemicals & Fibre Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Formosa Chemicals & Fibre Corporation
  • Ticker: 1326
  • Exchange: TSEC
  • Founded: 1965
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: NT$442.186b
  • Shares outstanding: 5.85b
  • Website: https://www.fcfc.com.tw

Location

  • Formosa Chemicals & Fibre Corporation
  • No. 201 Zhongshan Road
  • Section 3
  • Changhua
  • 500
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1326TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992

Biography

Formosa Chemicals & Fibre Corporation produces and sells petrochemical products, nylon fibers, and rayon staple fibers in Taiwan, China, and internationally. It offers various petrochemical products, including benzene, para-xylene, ortho-xylene, meta-xylene, styrene monomer, phenol, acetone, purified terephthalic acid, and purified isophthalic acid; and plastic products comprising polystyrene, acrylonitrile butadiene styrene (ABS) resin, polypropylene resin, polycarbonate (PC) resin, PC/ABS alloy, SAN resin, and ASA resin. The company also provides viscose rayon staple fiber, sodium sulphate, nylon 6 chip, filament of clothing and industry, and fireproof cloth products, as well as flame retardant, mosaic, compact, slub, recycle, modal, siro, multi-blended, and ring spun yarns. In addition, it is involved in the spinning, dyeing, printing, finishing, and manufacturing synthetic fibre, rug, and carpet; investment activities; cogeneration and power generation business; manufacturing and sale of cleaner and cosmetics; removal and disposal of waste; importing, exporting, and wholesale of food products; research and development, assembly, testing, and processing of various integrated circuits; providing employment services and temporary worker services; and import, trade, export processing, warehousing, design, and drawing of black, white, and colour graphs. Formosa Chemicals & Fibre Corporation was founded in 1965 and is headquartered in Changhua, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 15:45
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.