Silicon Motion TechnologyMEX:SIMO N 73 ROA % is 21.14% as of Mar. 2026, which is 87% above its 10-year median of 11.31. GuruFocus rates MEX:SIMO N with a GF Score™ of 73/100 and a GF Value™ of MXN2,066.42 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,028 Semiconductors companies, Silicon Motion Technology ranks better than 89.88% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Silicon Motion Technology's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN4,818 Mil.
Silicon Motion Technology's average Total Assets over the quarter that ended in Mar. 2026 was MXN22,792 Mil. Therefore, Silicon Motion Technology's annualized ROA % for the quarter that ended in Mar. 2026 was 21.14%.
The historical rank and industry rank for Silicon Motion Technology's ROA % or its related term are showing as below:
MEX:SIMO N'
s ROA % Range Over the Past 10 Years
Min: 5.37 Med: 11.31 Max: 23.35
Current: 14.93
During the past 13 years, Silicon Motion Technology's highest ROA % was 23.35%. The lowest was 5.37%. And the median was 11.31%.
MEX:SIMO N's ROA % is ranked better than 89.88% of 1028
companies
in the Semiconductors industry
Industry Median: 2.45
vs MEX:SIMO N: 14.93
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Semiconductors subindustry, Silicon Motion Technology's ROA %, along with its competitors' market caps and ROA % 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.
Silicon Motion Technology ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Silicon Motion Technology's ROA % distribution charts can be found below:
* The bar in red indicates where Silicon Motion Technology's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Silicon Motion Technology (MEX:SIMO N) has a ROA % of 21.14% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Silicon Motion Technology and its competitors. This is 87% above median its historical median of 11.31. Over the past decade, Silicon Motion Technology's ROA % has ranged from 5.37 to 23.35. According to the industry distribution chart, Silicon Motion Technology ranks #104 out of 1028 companies in the Semiconductors industry, placing it in the top 10.1%.
Is Silicon Motion Technology's ROA % too high?
Silicon Motion Technology's current ROA % of 21.14% is 87% above median its 10-year median of 11.31. Over the past 10 years, this metric has ranged from a low of 5.37 to a high of 23.35. The Semiconductors industry median ROA % is 2.45. Silicon Motion Technology's value of 21.14% is 762.9% above this industry median. Based on the distribution chart, Silicon Motion Technology ranks #104 out of 1028 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Silicon Motion Technology has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Silicon Motion Technology's ROA % compare to QRVO and ALGM?
According to the Semiconductors industry distribution chart, Silicon Motion Technology ranks #104 out of 1028 companies for ROA %. This places Silicon Motion Technology in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 2.45. Silicon Motion Technology's value of 21.14% is 762.9% above this benchmark. Historically, Silicon Motion Technology's own ROA % has ranged from 5.37 to 23.35 over the past decade. While the company's 10-year median is 11.31 vs. the industry median of 2.45, Silicon Motion Technology 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 ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.45, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Silicon Motion Technology's current ROA % of 21.14% is 762.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Silicon Motion Technology and its competitors. For the Semiconductors industry, the median ROA % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silicon Motion Technology's current ROA % is 21.14%, which is 87% above median its own 10-year median of 11.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silicon Motion Technology stock overvalued right now?
Based on GuruFocus' analysis, Silicon Motion Technology (MEX:SIMO N) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,066.42, compared to a current price of MXN5,867.00 — trading 183.9% above its estimated fair value. The current ROA % is 21.14%, which is 87% above median its 10-year median of 11.31 and 762.9% above the Semiconductors industry median of 2.45. Silicon Motion Technology's overall GF Score™ is 73/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Silicon Motion Technology (MEX:SIMO N), the current ROA % is 21.14% 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 Silicon Motion Technology (MEX:SIMO N) Overvalued in 2026?
Based on GuruFocus' analysis, Silicon Motion Technology stock appears to be overvalued.
The current stock price of MXN5,867.00 is trading 183.9% above its estimated GF Value™ of MXN2,066.42.
GuruFocus considers Silicon Motion Technology to be Significantly Overvalued.
Key valuation signals for MEX:SIMO N:
ROA %: 21.14% (87% above median its 10-year median of 11.31)
GF Value™: MXN2,066.42 vs. price of MXN5,867.00 (183.9% above fair value)
Industry Position: 762.9% above the Semiconductors median (#104 of 1028)
No single metric tells the full story. See the MEX:SIMO N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silicon Motion Technology Corp is engaged in developing NAND flash controllers for SSDs and other solid-state storage devices. Its only operating segment is to develop NAND flash controllers and SSD solutions. The company derives revenue from product categories such as Mobile Storage, Mobile Communications, and others. Silicon's geographical segments are Taiwan, the United States, Korea, China, Singapore, Malaysia, and others. The company's products are used in Personal Computing, Smartphone/Tablet/CE, Flash Card/USB Flash Drive, Industrial and Embedded, Automotive, and Enterprise and Data centers.
73GF Score
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