Foxsemicon Integrated Technology (TWSE:3413) has seen a 15% increase in its stock value over the past three months. In this article, we will focus on the company’s Return on Equity (ROE), which measures how well it is utilizing its capital. Essentially, ROE assesses a company’s profitability in relation to its equity capital. Foxsemicon Integrated Technology’s ROE stands at 18%, indicating that for every NT$1 of shareholder investment, the company generates NT$0.18 in profit. The company has shown impressive earnings growth of 23% over the past five years, outperforming the industry average. Despite retaining only 49% of its income, Foxsemicon Integrated Technology has been able to achieve high earnings growth. Overall, the company’s performance has been solid, with its high ROE driving considerable earnings growth. However, analysts predict a slowdown in future earnings growth.
Vocabulary List:
- Integrated /ˈɪntɪˌɡreɪtɪd/ (adjective): Combining or coordinating different parts into a single system.
- Utilizing /ˈjuːtəlaɪzɪŋ/ (verb): Making practical and effective use of something.
- Profitability /ˌprɒfɪtəˈbɪlɪti/ (noun): The degree to which a business or activity yields a profit.
- Performance /pərˈfɔːrməns/ (noun): The action or process of carrying out or accomplishing a task.
- Earnings /ˈɜrnɪŋz/ (noun): Money obtained in return for labor or services.
- Analysts /ˈænəˌlɪsts/ (noun): Individuals who examine and interpret data to provide insights.
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