Formosa Petrochemical Corporation (6505.TW) stock analysis

In our weekly check, Formosa Petrochemical Corporation is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Formosa Petrochemical Corporation

Formosa Petrochemical Corporation is an Energy company (Oil & Gas Refining & Marketing) based in Taiwan, listed on TAI as 6505.TW.

What our checks show for 6505.TW

Red flags

• Revenue fell 8.4% a year over the last 3 years.
• The price swings a lot: 56.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 79% from a peak. Would you have held through that?

Warning signs

• Operating cash flow is only 0.56x net profit: part of the reported profit does not arrive as cash.
• Analysts expect only about 0.4% a year of growth in revenue.
• The net margin is only 8.4%: little room if costs rise.
• Free cash flow is only 3.2% of revenue.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.05x equity.
• Operating profit covers interest 168 times over.
• Earnings per share grew 56.2% a year over the last 3 years.
• Net profit grew 56.1% a year over the last 3 years.
• The dividend takes 14% of profit: there is a cushion.
• A large company: market value $28.68 billion.

Similar companies

HINDPETRO.NS · BPCL.NS · TUPRS.IS · 5019.T · IOC.NS · PETRONET.NS

Questions

What grade does Formosa Petrochemical Corporation (6505.TW) have?

In our weekly check, Formosa Petrochemical Corporation is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6505.TW stock?

This week's biggest flags for Formosa Petrochemical Corporation: Weak revenue growth, Very volatile, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does Formosa Petrochemical Corporation do?

Formosa Petrochemical Corporation is an Energy company (Oil & Gas Refining & Marketing) based in Taiwan, listed on TAI as 6505.TW.

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 2026-10-31

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