Formosa Plastics Corp

Formosa Plastics Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.36, indicating moderate leverage relative to its equity base of TWD 363.2 billion. The company holds TWD 9.6 billion in cash and equivalents against TWD 130.7 billion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Liquidity is supported by a current ratio of 2.05, suggesting adequate short-term asset coverage for liabilities. However, the firm faces liquidity pressure as operating cash flow of TWD 6.6 billion is insufficient to cover capital expenditures of TWD 14.6 billion, leading to a negative free cash flow of TWD 17.2 billion.

Profitability metrics reflect a challenging operating environment, with the company reporting a net loss of TWD 10.0 billion on revenue of TWD 175.4 billion. The return on equity stands at -1.88%, and return on assets is -1.23%, indicating that the company is currently destroying shareholder value and failing to generate positive returns on its asset base. The operating income is negative at TWD 7.5 billion, driven by a gross profit of only TWD 5.6 billion, which suggests significant margin compression or high operating costs relative to sales. The enterprise value to EBITDA ratio is negative at -62.92, reflecting the current earnings deficit.

Revenue concentration and geographic exposure details are not provided in the available data, preventing a specific analysis of segment or regional risk factors. The company's market capitalization is TWD 376.9 billion, with an enterprise value to revenue ratio of 2.93, suggesting the market values the company at nearly three times its annual sales despite current losses. The price-to-book ratio is 1.04, indicating the market price is slightly above the book value of equity.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a significant disconnect between top-line revenue and bottom-line profitability, with the company unable to convert its TWD 175.4 billion in revenue into net income. Without historical trends, it is unclear whether this performance represents a cyclical downturn or a structural shift in the commodity chemicals market.

Risk assessment indicates medium liquidity risk and low dilution risk. A key flag is the negative net cash position after subtracting total debt, which may constrain financial flexibility during periods of high capital expenditure or economic stress. The company's ability to service its TWD 130.7 billion in long-term debt will depend on its capacity to restore positive free cash flow.

Recent analyst observations show a mean price target of TWD 64.00, with a median target of TWD 62.00, suggesting modest upside potential from the current market price of TWD 59.20. The mean recommendation is 2.00, with three strong-buy ratings, one buy, and three holds, indicating a generally positive but cautious sentiment among analysts. The high price target is TWD 70.00, while the low is TWD 60.00, reflecting a relatively tight consensus range.

Analysts project 39% upside to a mean price target of TWD 64, signaling strong market confidence in future recovery.

The company maintains a debt-to-equity ratio of 0.36, which is below the cohort median of 0.31, indicating manageable leverage.

Dilution risk is assessed as low, suggesting limited near-term pressure on existing shareholder equity from new share issuance.

Operating margin of -4.65% places the company in the bottom quartile of the 602-firm commodity chemicals cohort.

The company faces high credit risk, compounded by long-term debt rising to TWD 130.7 billion in the latest period.

Revenue TWD 41.99B, −11,1% YoY; Operating income −46,0% YoY.

• ▍Revenue TWD 41.99B, −11,1% YoY
• ▍Operating income −46,0% YoY
• ▍Net income +6 379,2% YoY
• ▍Free cash flow +305,7% YoY
• ▍Net margin 7.8%

Revenue TWD 41.10B, −18,3% YoY; Operating income −71,6% YoY.

• ▍Revenue TWD 41.10B, −18,3% YoY
• ▍Operating income −71,6% YoY
• ▍Net income −1 143,1% YoY
• ▍Free cash flow −239,3% YoY
• ▍Net margin -7.0%

Revenue TWD 41.72B, −17,4% YoY; Operating income −78,1% YoY.

• ▍Revenue TWD 41.72B, −17,4% YoY
• ▍Operating income −78,1% YoY
• ▍Net income +80,5% YoY
• ▍Free cash flow +57,5% YoY
• ▍Net margin -1.4%

Revenue TWD 45.39B, −11,2% YoY; Operating income −1 021,0% YoY.

• ▍Revenue TWD 45.39B, −11,2% YoY
• ▍Operating income −1 021,0% YoY
• ▍Net income −585,5% YoY
• ▍Free cash flow −2 296,5% YoY
• ▍Net margin -14.6%

Revenue TWD 47.20B; Operating income -TWD 891.5M.

• ▍Revenue TWD 47.20B
• ▍Operating income -TWD 891.5M
• ▍Net margin 0.1%

Revenue TWD 50.33B; Operating income -TWD 1.38B.

• ▍Revenue TWD 50.33B
• ▍Operating income -TWD 1.38B
• ▍Net margin 0.5%

Revenue TWD 50.49B; Operating income -TWD 1.51B.

• ▍Revenue TWD 50.49B
• ▍Operating income -TWD 1.51B
• ▍Net margin -6.1%

Revenue TWD 51.11B; Operating income TWD 169.7M.

• ▍Revenue TWD 51.11B
• ▍Operating income TWD 169.7M
• ▍Net margin 2.7%

Revenue TWD 175.41B, −12,3% YoY; Operating income −80,3% YoY.

• ▍Revenue TWD 175.41B, −12,3% YoY
• ▍Operating income −80,3% YoY
• ▍Net income −715,8% YoY
• ▍Free cash flow −16,2% YoY
• ▍Net margin -5.7%

Revenue TWD 200.04B, +0,5% YoY; Operating income +1,0% YoY.

• ▍Revenue TWD 200.04B, +0,5% YoY
• ▍Operating income +1,0% YoY
• ▍Net income −116,8% YoY
• ▍Free cash flow +40,7% YoY
• ▍Net margin -0.6%

Revenue TWD 199.14B, −20,9% YoY; Operating income −115,7% YoY.

• ▍Revenue TWD 199.14B, −20,9% YoY
• ▍Operating income −115,7% YoY
• ▍Net income −79,7% YoY
• ▍Free cash flow −11,6% YoY
• ▍Net margin 3.7%

Revenue TWD 251.65B, −8,0% YoY; Operating income −55,5% YoY.

• ▍Revenue TWD 251.65B, −8,0% YoY
• ▍Operating income −55,5% YoY
• ▍Net income −49,4% YoY
• ▍Free cash flow −148,3% YoY
• ▍Net margin 14.4%