SHSE:688981's ROE % is ranked worse than 54.58% of 1004
companies
in the Semiconductors industry
Industry Median: 4.55
vs SHSE:688981: 3.27
Semiconductor Manufacturing International (SHSE:688981) 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 (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.
Semiconductor Manufacturing International ROE % Related Terms
Semiconductor Manufacturing International ROE % 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 ROE % Chart
Semiconductor Manufacturing International Annual Data
* 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 ROE % vs Semiconductors Industry
* 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.
Semiconductor Manufacturing International (SHSE:688981) has a ROE % of 3.63% 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 Semiconductor Manufacturing International and its competitors. This is 14% below median its historical median of 4.22. Over the past decade, Semiconductor Manufacturing International's ROE % has ranged from 2.38 to 10.56. According to the industry distribution chart, Semiconductor Manufacturing International ranks #548 out of 1004 companies in the Semiconductors industry, placing it in the top 54.6%.
Is Semiconductor Manufacturing International's ROE % too high?
Semiconductor Manufacturing International's current ROE % of 3.63% is 14% below median its 10-year median of 4.22. Over the past 10 years, this metric has ranged from a low of 2.38 to a high of 10.56. The Semiconductors industry median ROE % is 4.55. Semiconductor Manufacturing International's value of 3.63% is 20.2% below this industry median. Based on the distribution chart, Semiconductor Manufacturing International ranks #548 out of 1004 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Semiconductor Manufacturing International has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semiconductor Manufacturing International's ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Semiconductor Manufacturing International ranks #548 out of 1004 companies for ROE %. This places Semiconductor Manufacturing International in the lower half of its industry. The industry median ROE % is 4.55. Semiconductor Manufacturing International's value of 3.63% is 20.2% below this benchmark. Historically, Semiconductor Manufacturing International's own ROE % has ranged from 2.38 to 10.56 over the past decade. While the company's 10-year median is 4.22 vs. the industry median of 4.55, 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 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. Semiconductor Manufacturing International's current ROE % of 3.63% is 20.2% 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 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 Semiconductor Manufacturing International 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. Semiconductor Manufacturing International's current ROE % is 3.63%, which is 14% below median its own 10-year median of 4.22. 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 ¥70.03, compared to a current price of ¥148.76 — trading 112.4% above its estimated fair value. The current ROE % is 3.63%, which is 14% below median its 10-year median of 4.22 and 20.2% below the Semiconductors industry median of 4.55. Semiconductor Manufacturing International's overall GF Score™ is 77/100 with 6 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 Semiconductor Manufacturing International (SHSE:688981), the current ROE % is 3.63% 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 ¥148.76 is trading 112.4% above its estimated GF Value™ of ¥70.03.
GuruFocus considers Semiconductor Manufacturing International to be Significantly Overvalued.
Key valuation signals for SHSE:688981:
ROE %: 3.63% (14% below median its 10-year median of 4.22)
GF Value™: ¥70.03 vs. price of ¥148.76 (112.4% above fair value)
Industry Position: 20.2% below the Semiconductors median (#548 of 1004)
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.
77GF Score
Get the complete analysis for SHSE:688981
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
SHSE:688981 has been successfully added to your 
