SITMCAUTIOUS

SITM Return on Equity (ROE) Analysis

-2.6%

Higher than 34% of Technology sector peers

Updated 312h ago·SEC filings & market data

Key Takeaway

A Return on Equity (ROE) of -2.6% means that for every dollar of shareholders' equity, SITM generated a loss of 2.6 cents over the last twelve months — it is a measure of how effectively the company uses investor money to produce profit.

Sector Performance

34th percentile

SITM

-2.6%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

-3.7%(May 2026)

↑ Improving

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Deep Analysis

This sits well below the Technology sector median of 8.2%, placing the firm in the 33rd percentile among its peers, indicating underperformance relative to the typical company in its industry. The year-over-year change is not available, but the quarter-over-quarter change shows an improvement of +29.7%, moving from -3.7% to the current -2.6%. The combination of a negative ROE and a recent improvement still leaves the company in loss-making territory, meaning the underlying risk remains elevated despite short-term progress toward breakeven. This metric contradicts the overall CAUTIOUS verdict because the rising ROE trend is a positive signal, yet the absolute negative level reinforces caution — the verdict is appropriate given that profitability has not yet been restored.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SITM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SITM's Return on Equity (ROE) compare to its sector?

SITM's Return on Equity (ROE) of -2.6% compares to a Technology sector median of 6.8%, placing it in the 34th percentile.

Who are SITM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%), MNDY (12.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.