SMTCCAUTIOUS

SMTC Return on Equity (ROE) Analysis

-5.8%

Higher than 30% of Technology sector peers

Updated 269h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; SMTC's -5.8% means it is currently producing a net loss, not profit, relative to its equity base.

Sector Performance

30th percentile

SMTC

-5.8%

Sector Median

8.2%

Sector Avg

-3.6%

Prior Period

-7.3%(May 2026)

↑ Improving

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Deep Analysis

This sits well below the sector median of 7.5%, placing SMTC in the 31st percentile among its Technology peers. The trend data is not available, with both the year-over-year change and quarter-over-quarter change reported as N/A, leaving no clear trajectory from the provided figures. A negative ROE at this level indicates the company is destroying shareholder value rather than creating it, and the absence of trend data adds uncertainty about whether this is improving or worsening. This combination of a sub-median, negative return with no visible path implies elevated risk for investors. The metric directly supports the overall CAUTIOUS verdict, as the current return on equity is both unprofitable and far below the sector benchmark.

Frequently Asked Questions

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

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 SMTC's Return on Equity (ROE) compare to its sector?

SMTC's Return on Equity (ROE) of -5.8% compares to a Technology sector median of 8.2%, placing it in the 30th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: CRWD (-0.2%), MDB (-1.0%), ZS (-3.7%), APLD (-5.6%), AMBA (-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.