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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
* 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, Lontium Semiconductor'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.
Lontium Semiconductor ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lontium Semiconductor's ROE % distribution charts can be found below:
* The bar in red indicates where Lontium Semiconductor'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Lontium Semiconductor (SHSE:688486) has a ROE % of 9.65% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lontium Semiconductor and its competitors. This is 50% below median its historical median of 19.22. Over the past decade, Lontium Semiconductor's ROE % has ranged from 10.09 to 35.23. According to the industry distribution chart, Lontium Semiconductor ranks #271 out of 1002 companies in the Semiconductors industry, placing it in the top 27%.
Is Lontium Semiconductor's ROE % too high?
Lontium Semiconductor's current ROE % of 9.65% is 50% below median its 10-year median of 19.22. Over the past 10 years, this metric has ranged from a low of 10.09 to a high of 35.23. The Semiconductors industry median ROE % is 4.55. Lontium Semiconductor's value of 9.65% is 112.1% above this industry median. Based on the distribution chart, Lontium Semiconductor ranks #271 out of 1002 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Lontium Semiconductor has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lontium Semiconductor's ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Lontium Semiconductor ranks #271 out of 1002 companies for ROE %. This puts Lontium Semiconductor in the upper half of its industry. The industry median ROE % is 4.55. Lontium Semiconductor's value of 9.65% is 112.1% above this benchmark. Historically, Lontium Semiconductor's own ROE % has ranged from 10.09 to 35.23 over the past decade. While the company's 10-year median is 19.22 vs. the industry median of 4.55, 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 ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,002 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. Lontium Semiconductor's current ROE % of 9.65% is 112.1% 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 Lontium Semiconductor 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. Lontium Semiconductor's current ROE % is 9.65%, which is 50% 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 Fairly Valued. The stock's GF Value™ is ¥69.53, compared to a current price of ¥63.58 — trading 8.6% below its estimated fair value. The current ROE % is 9.65%, which is 50% below median its 10-year median of 19.22 and 112.1% above the Semiconductors industry median of 4.55. Lontium Semiconductor's overall GF Score™ is 95/100 with 4 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 Lontium Semiconductor (SHSE:688486), the current ROE % is 9.65% 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 ¥63.58 is trading 8.6% below its estimated GF Value™ of ¥69.53.
GuruFocus considers Lontium Semiconductor to be Fairly Valued.
Key valuation signals for SHSE:688486:
ROE %: 9.65% (50% below median its 10-year median of 19.22)
GF Value™: ¥69.53 vs. price of ¥63.58 (8.6% below fair value)
Industry Position: 112.1% above the Semiconductors median (#271 of 1002)
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.
AddressNo. 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.
95GF Score
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