SemtechMEX:SMTC 55 ROC (Joel Greenblatt) % is 37.14% as of Apr. 2026, which is 15% above its 10-year median of 32.40. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN628.39 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,025 Semiconductors companies, Semtech ranks worse than 68.59% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Semtech's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 37.14%.
The historical rank and industry rank for Semtech's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:SMTC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -302.75 Med: 32.4 Max: 61.47
Current: -3.59
During the past 13 years, Semtech's highest ROC (Joel Greenblatt) % was 61.47%. The lowest was -302.75%. And the median was 32.40%.
MEX:SMTC's ROC (Joel Greenblatt) % is ranked worse than 68.59% of 1025
companies
in the Semiconductors industry
Industry Median: 8.35
vs MEX:SMTC: -3.59
Semtech's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Semtech's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Semiconductors subindustry, Semtech's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Semtech's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 37.14% mean?
Semtech (MEX:SMTC) has a ROC (Joel Greenblatt) % of 37.14% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Semtech and its competitors. This is 15% above median its historical median of 32.40. According to the industry distribution chart, Semtech ranks #703 out of 1025 companies in the Semiconductors industry, placing it in the top 68.6%.
Is Semtech's ROC (Joel Greenblatt) % too high?
Semtech's current ROC (Joel Greenblatt) % of 37.14% is 15% above median its 10-year median of 32.40. The Semiconductors industry median ROC (Joel Greenblatt) % is 8.35. Semtech's value of 37.14% is 344.8% above this industry median. Based on the distribution chart, Semtech ranks #703 out of 1025 companies in the Semiconductors industry, which is below the industry midpoint. 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 ROC (Joel Greenblatt) % compare to RMBS and ALGM?
According to the Semiconductors industry distribution chart, Semtech ranks #703 out of 1025 companies for ROC (Joel Greenblatt) %. This places Semtech in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 8.35. Semtech's value of 37.14% is 344.8% above this benchmark. While the company's 10-year median is 32.40 vs. the industry median of 8.35, 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 ROC (Joel Greenblatt) % for a Semiconductors company?
The median ROC (Joel Greenblatt) % among Semiconductors companies is 8.35, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Semtech's current ROC (Joel Greenblatt) % of 37.14% is 344.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Semtech and its competitors. For the Semiconductors industry, the median ROC (Joel Greenblatt) % is 8.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semtech's current ROC (Joel Greenblatt) % is 37.14%, which is 15% above median its own 10-year median of 32.40. 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 MXN628.39, compared to a current price of MXN2,230.00 — trading 254.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 37.14%, which is 15% above median its 10-year median of 32.40 and 344.8% above the Semiconductors industry median of 8.35. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Semtech (MEX:SMTC), the current ROC (Joel Greenblatt) % is 37.14% 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 MXN2,230.00 is trading 254.9% above its estimated GF Value™ of MXN628.39.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for MEX:SMTC:
ROC (Joel Greenblatt) %: 37.14% (15% above median its 10-year median of 32.40)
GF Value™: MXN628.39 vs. price of MXN2,230.00 (254.9% above fair value)
Industry Position: 344.8% above the Semiconductors median (#703 of 1025)
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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