SemtechMEX:SMTC 55 Return-on-Tangible-Equity is 225.41% as of Apr. 2026, which is 1107% above its 10-year median of 18.67. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN673.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 984 Semiconductors companies, Semtech ranks worse than 97.76% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Semtech's annualized net income for the quarter that ended in Apr. 2026 was MXN1,864 Mil. Semtech's average shareholder tangible equity for the quarter that ended in Apr. 2026 was MXN827 Mil. Therefore, Semtech's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 225.41%.
The historical rank and industry rank for Semtech's Return-on-Tangible-Equity or its related term are showing as below:
MEX:SMTC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -288.32 Med: 18.67 Max: 35.13
Current: -103.6
During the past 13 years, Semtech's highest Return-on-Tangible-Equity was 35.13%. The lowest was -288.32%. And the median was 18.67%.
MEX:SMTC's Return-on-Tangible-Equity is ranked worse than 97.76% of 984
companies
in the Semiconductors industry
Industry Median: 5.24
vs MEX:SMTC: -103.60
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Semtech Return-on-Tangible-Equity Related Terms
Semtech Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Semtech's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:SMTC vs RMBS, ALGM, SIMO: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Semtech's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Semtech Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Semtech's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 225.41% mean?
Semtech (MEX:SMTC) has a Return-on-Tangible-Equity of 225.41% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Semtech and its competitors. This is 1107% above median its historical median of 18.67. According to the industry distribution chart, Semtech ranks #962 out of 984 companies in the Semiconductors industry, placing it in the top 97.8%.
Is Semtech's Return-on-Tangible-Equity too high?
Semtech's current Return-on-Tangible-Equity of 225.41% is 1107% above median its 10-year median of 18.67. The Semiconductors industry median Return-on-Tangible-Equity is 5.24. Semtech's value of 225.41% is 4201.7% above this industry median. Based on the distribution chart, Semtech ranks #962 out of 984 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Semtech has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semtech's Return-on-Tangible-Equity compare to RMBS and ALGM?
According to the Semiconductors industry distribution chart, Semtech ranks #962 out of 984 companies for Return-on-Tangible-Equity. This places Semtech in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.24. Semtech's value of 225.41% is 4201.7% above this benchmark. While the company's 10-year median is 18.67 vs. the industry median of 5.24, Semtech has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.24, based on 984 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Semtech's current Return-on-Tangible-Equity of 225.41% is 4201.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Semtech and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semtech's current Return-on-Tangible-Equity is 225.41%, which is 1107% above median its own 10-year median of 18.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semtech stock overvalued right now?
Based on GuruFocus' analysis, Semtech (MEX:SMTC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN673.32, compared to a current price of MXN2,863.00 — trading 325.2% above its estimated fair value. The current Return-on-Tangible-Equity is 225.41%, which is 1107% above median its 10-year median of 18.67 and 4201.7% above the Semiconductors industry median of 5.24. Semtech's overall GF Score™ is 55/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Semtech (MEX:SMTC), the current Return-on-Tangible-Equity is 225.41% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Semtech (MEX:SMTC) Overvalued in 2026?
Based on GuruFocus' analysis, Semtech stock appears to be overvalued.
The current stock price of MXN2,863.00 is trading 325.2% above its estimated GF Value™ of MXN673.32.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for MEX:SMTC:
Return-on-Tangible-Equity: 225.41% (1107% above median its 10-year median of 18.67)
GF Value™: MXN673.32 vs. price of MXN2,863.00 (325.2% above fair value)
Industry Position: 4201.7% above the Semiconductors median (#962 of 984)
No single metric tells the full story. See the MEX:SMTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semtech Corp is a provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions. The company designs, develops, manufactures, and markets a diverse portfolio of products for commercial applications, addressing the infrastructure, high-end consumer, and industrial end markets. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems, and Connected Services. The majority of the company's revenue is earned through the Analog Mixed Signal and Wireless segment. Geographically, the majority of the company's revenue is earned from the Asia Pacific region; the company also operates in North America and Europe.
55GF Score
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