Lontium Semiconductor (SHSE:688486) Return-on-Tangible-Equity: 10.07% (As of Mar. 2026) — 48% Below Median

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SHSE:688486 Lontium Semiconductor Corp SHSE:688486
86 GF Score
Price ¥41.88
GF Value ¥72.06
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is Lontium Semiconductor Return-on-Tangible-Equity?

Lontium Semiconductor SHSE:688486 -13.02% 86 Return-on-Tangible-Equity is 10.07% as of Mar. 2026, which is 48% below its 10-year median of 19.22. GuruFocus rates SHSE:688486 with a GF Score™ of 86/100 and a GF Value™ of ¥72.06 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 985 Semiconductors companies, Lontium Semiconductor ranks better than 71.47% 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. Lontium Semiconductor's annualized net income for the quarter that ended in Mar. 2026 was ¥152.3 Mil. Lontium Semiconductor's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,512.5 Mil. Therefore, Lontium Semiconductor's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.07%.

The historical rank and industry rank for Lontium Semiconductor's Return-on-Tangible-Equity or its related term are showing as below:

SHSE:688486' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.16   Med: 19.22   Max: 35.56
Current: 12.56

During the past 9 years, Lontium Semiconductor's highest Return-on-Tangible-Equity was 35.56%. The lowest was 10.16%. And the median was 19.22%.

SHSE:688486's Return-on-Tangible-Equity is ranked better than
71.47% of 985 companies
in the Semiconductors industry
Industry Median: 5.24 vs SHSE:688486: 12.56

Lontium Semiconductor  (SHSE:688486) Return-on-Tangible-Equity Explanation

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.


Lontium Semiconductor Return-on-Tangible-Equity Related Terms


Lontium Semiconductor Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Lontium Semiconductor'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.

Lontium Semiconductor Return-on-Tangible-Equity Chart

Lontium Semiconductor Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 35.56 23.69 11.84 10.16 11.81

Lontium Semiconductor Quarterly Data
Jun20 Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.18 12.47 14.98 12.93 10.07

SHSE:688486 vs NVDA, AVGO, MU: Return-on-Tangible-Equity Comparison

For the Semiconductors subindustry, Lontium Semiconductor'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.


Lontium Semiconductor Return-on-Tangible-Equity vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Lontium Semiconductor's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Lontium Semiconductor's Return-on-Tangible-Equity falls into.


SHSE:688486
86GF Score
Lontium Semiconductor Corp SHSE:688486
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lontium Semiconductor Return-on-Tangible-Equity Calculation

Lontium Semiconductor's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=171.916/( (1419.34+1492.197 )/ 2 )
=171.916/1455.7685
=11.81 %

Lontium Semiconductor's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=152.32/( (1492.197+1532.75)/ 2 )
=152.32/1512.4735
=10.07 %

* 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 (Mar. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 10.07% mean?
Lontium Semiconductor (SHSE:688486) has a Return-on-Tangible-Equity of 10.07% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lontium Semiconductor and its competitors. This is 48% below median its historical median of 19.22. Over the past decade, Lontium Semiconductor's Return-on-Tangible-Equity has ranged from 10.16 to 35.56. According to the industry distribution chart, Lontium Semiconductor ranks #281 out of 985 companies in the Semiconductors industry, placing it in the top 28.5%.
Is Lontium Semiconductor's Return-on-Tangible-Equity too high?
Lontium Semiconductor's current Return-on-Tangible-Equity of 10.07% is 48% below median its 10-year median of 19.22. Over the past 10 years, this metric has ranged from a low of 10.16 to a high of 35.56. The Semiconductors industry median Return-on-Tangible-Equity is 5.24. Lontium Semiconductor's value of 10.07% is 92.2% above this industry median. Based on the distribution chart, Lontium Semiconductor ranks #281 out of 985 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Lontium Semiconductor has a GF Score™ of 86/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lontium Semiconductor's Return-on-Tangible-Equity compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Lontium Semiconductor ranks #281 out of 985 companies for Return-on-Tangible-Equity. This puts Lontium Semiconductor in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.24. Lontium Semiconductor's value of 10.07% is 92.2% above this benchmark. Historically, Lontium Semiconductor's own Return-on-Tangible-Equity has ranged from 10.16 to 35.56 over the past decade. While the company's 10-year median is 19.22 vs. the industry median of 5.24, Lontium Semiconductor 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 985 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. Lontium Semiconductor's current Return-on-Tangible-Equity of 10.07% is 92.2% 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 Lontium Semiconductor 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. Lontium Semiconductor's current Return-on-Tangible-Equity is 10.07%, which is 48% below median its own 10-year median of 19.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lontium Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Lontium Semiconductor (SHSE:688486) is currently considered Possible Value Trap. The stock's GF Value™ is ¥72.06, compared to a current price of ¥41.88 — trading 41.9% below its estimated fair value. The current Return-on-Tangible-Equity is 10.07%, which is 48% below median its 10-year median of 19.22 and 92.2% above the Semiconductors industry median of 5.24. Lontium Semiconductor's overall GF Score™ is 86/100 with 4 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 Lontium Semiconductor (SHSE:688486), the current Return-on-Tangible-Equity is 10.07% as of Mar. 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 Lontium Semiconductor (SHSE:688486) Overvalued in 2026?

Based on GuruFocus' analysis, Lontium Semiconductor stock appears to be undervalued. The current stock price of ¥41.88 is trading 41.9% below its estimated GF Value™ of ¥72.06. GuruFocus considers Lontium Semiconductor to be Possible Value Trap.

Key valuation signals for SHSE:688486:

  • Return-on-Tangible-Equity: 10.07% (48% below median its 10-year median of 19.22)
  • GF Value™: ¥72.06 vs. price of ¥41.88 (41.9% below fair value)
  • GF Score™: 86/100 with 4 warning signs
  • Industry Position: 92.2% above the Semiconductors median (#281 of 985)

No single metric tells the full story. See the SHSE:688486 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lontium Semiconductor Business Description

Address No. 3963, Susong Road, Building B3, Intelligent Equipment Science and Technology Park, Economic and Technological Development Zone, Anhui Province, Hefei, CHN, 230601
Lontium Semiconductor Corp is engaged in the developing and marketing high-speed interface chips, embedded GPUs and ultra high-definition display drivers targeted for wide range high-definition multi-media applications. Its products include HDMI V1.3/V1.4/2.0/2.1 chipset, Displayport 1.2/1.4 chipset, USB 2.0, USB3.1 Type C chipset, MIPI chipset, LVDS chipset, VGA and LCD/TV controller and driver serving applications from PCs, notebooks, smartphones, TVs, monitors, automobiles to VR and accessories. The company's high-speed interface IPs and a wide range mixed-signal IPs on leading edge manufacturing technology serve various SoC vendors worldwide.
86GF Score

Get the complete analysis for SHSE:688486

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥41.88
Price
¥72.06
GF Value