Semtech Return On Asset vs. Net Income
| SMTC Stock | USD 64.04 0.16 0.25% |
For Semtech profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Semtech to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Semtech utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Semtech's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Semtech over time as well as its relative position and ranking within its peers.
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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Semtech. If investors know Semtech will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Semtech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Semtech is measured differently than its book value, which is the value of Semtech that is recorded on the company's balance sheet. Investors also form their own opinion of Semtech's value that differs from its market value or its book value, called intrinsic value, which is Semtech's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Semtech's market value can be influenced by many factors that don't directly affect Semtech's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Semtech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Semtech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Semtech's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Semtech Net Income vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Semtech's current stock value. Our valuation model uses many indicators to compare Semtech value to that of its competitors to determine the firm's financial worth. Semtech is rated below average in return on asset category among its peers. It is rated below average in net income category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Semtech's earnings, one of the primary drivers of an investment's value.Semtech Net Income vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.001 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
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| = | (1.09 B) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Semtech Net Income Comparison
Semtech is currently under evaluation in net income category among its peers.
Semtech Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Semtech, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Semtech will eventually generate negative long term returns. The profitability progress is the general direction of Semtech's change in net profit over the period of time. It can combine multiple indicators of Semtech, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company was incorporated in 1960 and is headquartered in Camarillo, California. Semtech Corp operates under Semiconductors classification in the United States and is traded on NASDAQ Exchange. It employs 14 people.
Semtech Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Semtech. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Semtech position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Semtech's important profitability drivers and their relationship over time.
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Use Investing Themes to Complement your Semtech position
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Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 189 constituents at this time.
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Check out World Market Map. For information on how to trade Semtech Stock refer to our How to Trade Semtech Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Semtech's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Semtech at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Semtech's income statement, its balance sheet, and the statement of cash flows.