SemtechMEX:SMTC 55 ROE % is 19.04% as of Apr. 2026, which is 178% above its 10-year median of 6.84. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN724.19 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,004 Semiconductors companies, Semtech ranks worse than 74.4% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Semtech's annualized net income for the quarter that ended in Apr. 2026 was MXN1,864 Mil. Semtech's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was MXN9,789 Mil. Therefore, Semtech's annualized ROE % for the quarter that ended in Apr. 2026 was 19.04%.
The historical rank and industry rank for Semtech's ROE % or its related term are showing as below:
MEX:SMTC'
s ROE % Range Over the Past 10 Years
Min: -487.06 Med: 6.84 Max: 17.5
Current: -5.89
During the past 13 years, Semtech's highest ROE % was 17.50%. The lowest was -487.06%. And the median was 6.84%.
MEX:SMTC's ROE % is ranked worse than 74.4% of 1004
companies
in the Semiconductors industry
Industry Median: 4.55
vs MEX:SMTC: -5.89
Semtech (MEX:SMTC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Semtech ROE % Related Terms
Semtech ROE % Historical Data
* Premium members only.
The historical data trend for Semtech's ROE % 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.
For the Semiconductors subindustry, Semtech's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's ROE % distribution charts can be found below:
* The bar in red indicates where Semtech's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Semtech (MEX:SMTC) has a ROE % of 19.04% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Semtech and its competitors. This is 178% above median its historical median of 6.84. According to the industry distribution chart, Semtech ranks #747 out of 1004 companies in the Semiconductors industry, placing it in the top 74.4%.
Is Semtech's ROE % too high?
Semtech's current ROE % of 19.04% is 178% above median its 10-year median of 6.84. The Semiconductors industry median ROE % is 4.55. Semtech's value of 19.04% is 318.5% above this industry median. Based on the distribution chart, Semtech ranks #747 out of 1004 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 ROE % compare to RMBS and SWKS?
According to the Semiconductors industry distribution chart, Semtech ranks #747 out of 1004 companies for ROE %. This places Semtech in the lower half of its industry. The industry median ROE % is 4.55. Semtech's value of 19.04% is 318.5% above this benchmark. While the company's 10-year median is 6.84 vs. the industry median of 4.55, 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 ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Semtech's current ROE % of 19.04% is 318.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Semtech and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semtech's current ROE % is 19.04%, which is 178% above median its own 10-year median of 6.84. 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 MXN724.19, compared to a current price of MXN2,863.00 — trading 295.3% above its estimated fair value. The current ROE % is 19.04%, which is 178% above median its 10-year median of 6.84 and 318.5% above the Semiconductors industry median of 4.55. Semtech's overall GF Score™ is 55/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Semtech (MEX:SMTC), the current ROE % is 19.04% 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 295.3% above its estimated GF Value™ of MXN724.19.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for MEX:SMTC:
ROE %: 19.04% (178% above median its 10-year median of 6.84)
GF Value™: MXN724.19 vs. price of MXN2,863.00 (295.3% above fair value)
Industry Position: 318.5% above the Semiconductors median (#747 of 1004)
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
Get the complete analysis for MEX:SMTC
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:SMTC has been successfully added to your 
