SHSE:688981's Return-on-Tangible-Equity is ranked worse than 56.04% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs SHSE:688981: 3.30
Semiconductor Manufacturing International (SHSE:688981) 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.
Semiconductor Manufacturing International Return-on-Tangible-Equity Related Terms
Semiconductor Manufacturing International Return-on-Tangible-Equity Historical Data
* 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.
Semiconductor Manufacturing International Return-on-Tangible-Equity Chart
Semiconductor Manufacturing International Annual Data
SHSE:688981 vs NVDA, AVGO, MU: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Semiconductor Manufacturing International'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.
Semiconductor Manufacturing International Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semiconductor Manufacturing International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Semiconductor Manufacturing International'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 (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 3.66% mean?
Semiconductor Manufacturing International (SHSE:688981) has a Return-on-Tangible-Equity of 3.66% 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 Semiconductor Manufacturing International and its competitors. This is 17% below median its historical median of 4.40. Over the past decade, Semiconductor Manufacturing International's Return-on-Tangible-Equity has ranged from 2.46 to 10.81. According to the industry distribution chart, Semiconductor Manufacturing International ranks #552 out of 985 companies in the Semiconductors industry, placing it in the top 56%.
Is Semiconductor Manufacturing International's Return-on-Tangible-Equity too high?
Semiconductor Manufacturing International's current Return-on-Tangible-Equity of 3.66% is 17% below median its 10-year median of 4.40. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 10.81. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. Semiconductor Manufacturing International's value of 3.66% is 29.5% below this industry median. Based on the distribution chart, Semiconductor Manufacturing International ranks #552 out of 985 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Semiconductor Manufacturing International has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semiconductor Manufacturing International's Return-on-Tangible-Equity compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Semiconductor Manufacturing International ranks #552 out of 985 companies for Return-on-Tangible-Equity. This places Semiconductor Manufacturing International in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.19. Semiconductor Manufacturing International's value of 3.66% is 29.5% below this benchmark. Historically, Semiconductor Manufacturing International's own Return-on-Tangible-Equity has ranged from 2.46 to 10.81 over the past decade. While the company's 10-year median is 4.40 vs. the industry median of 5.19, Semiconductor Manufacturing International has consistently been below 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 5.19, 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. Semiconductor Manufacturing International's current Return-on-Tangible-Equity of 3.66% is 29.5% below 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 Semiconductor Manufacturing International and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semiconductor Manufacturing International's current Return-on-Tangible-Equity is 3.66%, which is 17% below median its own 10-year median of 4.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semiconductor Manufacturing International stock overvalued right now?
Based on GuruFocus' analysis, Semiconductor Manufacturing International (SHSE:688981) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥64.54, compared to a current price of ¥149.03 — trading 130.9% above its estimated fair value. The current Return-on-Tangible-Equity is 3.66%, which is 17% below median its 10-year median of 4.40 and 29.5% below the Semiconductors industry median of 5.19. Semiconductor Manufacturing International's overall GF Score™ is 72/100 with 9 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 Semiconductor Manufacturing International (SHSE:688981), the current Return-on-Tangible-Equity is 3.66% 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 Semiconductor Manufacturing International (SHSE:688981) Overvalued in 2026?
Based on GuruFocus' analysis, Semiconductor Manufacturing International stock appears to be overvalued.
The current stock price of ¥149.03 is trading 130.9% above its estimated GF Value™ of ¥64.54.
GuruFocus considers Semiconductor Manufacturing International to be Significantly Overvalued.
Key valuation signals for SHSE:688981:
Return-on-Tangible-Equity: 3.66% (17% below median its 10-year median of 4.40)
GF Value™: ¥64.54 vs. price of ¥149.03 (130.9% above fair value)
Industry Position: 29.5% below the Semiconductors median (#552 of 985)
No single metric tells the full story. See the SHSE:688981 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semiconductor Manufacturing International Business Description
Founded in 2000, Semiconductor Manufacturing International Corporation is the largest foundry in China and the third-largest globally after TSMC and Samsung Electronics, overtaking GlobalFoundries and United Microelectronics in 2024. The company's headquarters and foundry are in Shanghai, with additional foundries in Beijing, Tianjin, and Shenzhen, and offices in the United States, Europe, Japan, Taiwan, and Hong Kong. Its products are used in artificial intelligence, data centers, automotive, consumer electronics, memory, and "Internet of Things" products. SMIC employs 19,952 people as of Dec. 31, 2025.
72GF Score
Get the complete analysis for SHSE:688981
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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