Formosa Chemicals & Fibre Corporation (1326.TW) stock analysis

In our weekly check, Formosa Chemicals & Fibre Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About Formosa Chemicals & Fibre Corporation

Formosa Chemicals & Fibre Corporation is a Basic Materials company (Chemicals) based in Taiwan, listed on TAI as 1326.TW.

What our checks show for 1326.TW

Red flags

• Net debt is 5.5x a year of EBITDA (debt/equity 0.25). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.5 times: a weak year could make the payments hard.
• The net margin fell by 5.9 points over 5 years, to 4.6%: the company keeps less of each sale as profit.
• The gross margin fell by 8.8 points, to 5.8%: costs are rising faster than prices.
• Revenue fell 7.2% a year over the last 3 years.
• The net margin is only 4.6%: little room if costs rise.
• The price swings a lot: 61.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.7%.

Warning signs

• Free cash flow is only 0.3% of revenue.
• Free cash flow covers the dividend only 0.4 times.
• The stock is still below its previous peak.

Strengths

• Analysts expect earnings per share to grow about 63.8% a year over the next years.
• Analysts expect the net margin to improve by 8 points from today's 4.6%.
• Earnings per share grew 23.3% a year over the last 3 years.
• Net profit grew 23.4% a year over the last 3 years.
• A large company: market value $13.11 billion.
• Beta 0.64: the stock usually moves less than the market.

Next earnings report: 2026-10-30

Similar companies

SOL.JO · 2010.SR · 4188.T · 1303.TW · 4004.T · IQCD.QA

Questions

What grade does Formosa Chemicals & Fibre Corporation (1326.TW) have?

In our weekly check, Formosa Chemicals & Fibre Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1326.TW stock?

This week's biggest flags for Formosa Chemicals & Fibre Corporation: High debt, Weak interest cover, Margins falling. In total 12 of 25 checks show a warning or a red flag.

What does Formosa Chemicals & Fibre Corporation do?

Formosa Chemicals & Fibre Corporation is a Basic Materials company (Chemicals) based in Taiwan, listed on TAI as 1326.TW.

When does Formosa Chemicals & Fibre Corporation report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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