SMTCCAUTIOUS

SMTC Return on Equity (ROE) Analysis

-5.8%

Higher than 29% of Technology sector peers

Updated 406h ago·SEC filings & market data

Key Takeaway

SMTC’s current Return on Equity (ROE) of -5.8% means that for every dollar of shareholder equity, the company is losing about 5.8 cents – ROE measures profit generated from shareholders’ money.

Sector Performance

29th percentile

SMTC

-5.8%

Sector Median

6.9%

Sector Avg

-3.3%

Prior Period

-7.3%(May 2026)

↑ Improving

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Deep Analysis

SMTC’s current Return on Equity (ROE) of -5.8% means that for every dollar of shareholder equity, the company is losing about 5.8 cents – ROE measures profit generated from shareholders’ money.

That -5.8% lags far behind its Technology sector median of 8.2%, placing SMTC in the 28th percentile among peers. The year-over-year change is N/A, but quarter-over-quarter the metric improved by +20.5%, indicating a shift from -7.3% to -5.8%. The combination of a negative ROE with a recent uptick suggests the company is still unprofitable on an equity basis, though the improvement could signal a narrowing of losses. This negative level and positive short-term trend imply elevated risk for investors, as profitability remains elusive. The metric directly supports the overall CAUTIOUS verdict: a negative ROE signals poor capital efficiency, and while the quarterly improvement is a step in the right direction, it does not offset the below-median standing.

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 6.9%, placing it in the 29th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: COHU (-7.0%), LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%).

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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.