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Formosa Plastics Corporation (1301) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Formosa Plastics Corporation

1301Market cap $14BPrice $2.4

Country🇹🇼Taiwan

SectorMaterials

IndustryChemicals

Manufactures PVC resins, plastics, and petrochemical products that form the backbone of Taiwan's industrial economy. Founded in 1954, it grew into one of Asia's largest plastics makers, supplying materials used in everything from pipes to electronics casings worldwide.

In Bastion Portfolios?

52W Return+87%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-12%1

Revenue Forecast

Rev CAGR (1y)+1%3

Rev CAGR (3y)+1%2

Rev CAGR (5y)+1%1

Earnings Forecast

EPS Growth Y+10%5

EPS Growth Y+2-48%2

EPS Growth Y+3+65%10

Quality

Margins

EBIT Margin-2%1

Net Income Margin6%4

Free Cash Flow Margin-6%2

Debt

Net Debt/EBITDA-15.810

Efficiency

ROE2%2

ROA2%4

Earnings Stability33

GEAR+VERY WEAK9

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)223

P/E Ratio (Forward 3y)203

P/BV0.810

EV Multiples

EV/EBITDA Fwd010

EV/EBIT Fwd110

Yield

Free Cash Flow Yield-2.2%2

Dividend Yield0.7%2

Momentum

Short term

1 month return+3%9

3 month return+20%10

YTD return+78%10

Mid term

Price vs 52wHigh106%10

1 year return+85%10

Long term

3 year return-9%2

5 year return-31%2

Risk Shield

Price Risk

Beta0.67

Volatility50%3

Free Cash Flow

Free Cash Flow Margin-6%2

Free Cash Flow Yield-2.2%2

Quality

ROCE-1%1

Earnings Stability33

Net Debt/EBITDA-15.810

02Growth

Is it actually growing, and how fast?

1301Formosa Plastics

Revenue FY25$5.6B

GROWTH RATING↗

VERY WEAK8 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-12%1

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+1%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E-48%2

EPS growth, FY28E+65%10

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

After shrinking over the last 3 years, revenue is set to grow 1%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 92% of companies worldwide.

Revenue fell 12%/yr over the last 3 years, behind 90% of companies worldwide.1/10

Revenue is set to grow 1%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 0.8%/yr, behind 90% of companies worldwide.1/10

Earnings are set to fall even as revenue grows (EPS about 0%/yr vs revenue 1%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

1301Formosa Plastics

Total return Current29.6%

Price return Current−13.7%

MOMENTUM RATING↗

STRONG80 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return+20%10

YTD return+78%10

MID & LONG-TERM▾SCORE

% of 52-week high106%10

1-year return+85%10

3-year return-9%2

5-year return-31%2

MOMENTUM ASSESSMENT

STRENGTHS

It's up 85% over the past year, now sitting right at its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+3%), over three months (+20%) and so far this year (+78%).

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-9.3% over three years and -31% over five), behind 80% of the market.

BOTTOM LINE

Early Turnaround

A poor multi-year track record but a sharp recent rally. Momentum is turning up, yet the trend is young and unproven — it needs follow-through to confirm rather than fade. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Formosa Plastics Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

1301Formosa Plastics

Revenue FY25$5.6B

GROWTH RATING↗

VERY WEAK8 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-12%1

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+1%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E-48%2

EPS growth, FY28E+65%10

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

After shrinking over the last 3 years, revenue is set to grow 1%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 92% of companies worldwide.

Revenue fell 12%/yr over the last 3 years, behind 90% of companies worldwide.1/10

Revenue is set to grow 1%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 0.8%/yr, behind 90% of companies worldwide.1/10

Earnings are set to fall even as revenue grows (EPS about 0%/yr vs revenue 1%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

1301Formosa Plastics

Total return Current29.6%

Price return Current−13.7%

MOMENTUM RATING↗

STRONG80 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return+20%10

YTD return+78%10

MID & LONG-TERM▾SCORE

% of 52-week high106%10

1-year return+85%10

3-year return-9%2

5-year return-31%2

MOMENTUM ASSESSMENT

STRENGTHS

It's up 85% over the past year, now sitting right at its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+3%), over three months (+20%) and so far this year (+78%).

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-9.3% over three years and -31% over five), behind 80% of the market.

BOTTOM LINE

Early Turnaround

04Value

Are you paying a fair price for it?

Stop guessing on Formosa Plastics Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community