Applied MaterialsAMAT -6.16%85 Return-on-Tangible-Asset is 32.14% as of Apr. 2026, which is 36% above its 10-year median of 23.71. GuruFocus rates AMAT with a GF Score™ of 85/100 and a GF Value™ of $217.76 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Semiconductors companies, Applied Materials ranks better than 96.79% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Applied Materials's annualizedNet Income for the quarter that ended in Apr. 2026 was $11,224 Mil. Applied Materials's average total tangible assets for the quarter that ended in Apr. 2026 was $34,927 Mil. Therefore, Applied Materials's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 32.14%.
The historical rank and industry rank for Applied Materials's Return-on-Tangible-Asset or its related term are showing as below:
AMAT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 15.7 Med: 23.71 Max: 29.05
Current: 26.25
During the past 13 years, Applied Materials's highest Return-on-Tangible-Asset was 29.05%. The lowest was 15.70%. And the median was 23.71%.
AMAT's Return-on-Tangible-Asset is ranked better than 96.79% of 1028
companies
in the Semiconductors industry
Industry Median: 2.59
vs AMAT: 26.25
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Applied Materials Return-on-Tangible-Asset Related Terms
Applied Materials Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Applied Materials's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AMAT vs LRCX, KLAC, TER: Return-on-Tangible-Asset Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Materials Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Applied Materials's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 32.14% mean?
Applied Materials (AMAT) has a Return-on-Tangible-Asset of 32.14% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Applied Materials and its competitors. This is 36% above median its historical median of 23.71. Over the past decade, Applied Materials' Return-on-Tangible-Asset has ranged from 15.70 to 29.05. According to the industry distribution chart, Applied Materials ranks #33 out of 1028 companies in the Semiconductors industry, placing it in the top 3.2%.
Is Applied Materials' Return-on-Tangible-Asset too high?
Applied Materials' current Return-on-Tangible-Asset of 32.14% is 36% above median its 10-year median of 23.71. Over the past 10 years, this metric has ranged from a low of 15.70 to a high of 29.05. The Semiconductors industry median Return-on-Tangible-Asset is 2.59. Applied Materials' value of 32.14% is 1140.9% above this industry median. Based on the distribution chart, Applied Materials ranks #33 out of 1028 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Applied Materials has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Return-on-Tangible-Asset compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #33 out of 1028 companies for Return-on-Tangible-Asset. This places Applied Materials in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.59. Applied Materials' value of 32.14% is 1140.9% above this benchmark. Historically, Applied Materials' own Return-on-Tangible-Asset has ranged from 15.70 to 29.05 over the past decade. While the company's 10-year median is 23.71 vs. the industry median of 2.59, Applied Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.59, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Return-on-Tangible-Asset of 32.14% is 1140.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Return-on-Tangible-Asset is 32.14%, which is 36% above median its own 10-year median of 23.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Based on GuruFocus' analysis, Applied Materials (AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $217.76, compared to a current price of $626.84 — trading 187.9% above its estimated fair value. The current Return-on-Tangible-Asset is 32.14%, which is 36% above median its 10-year median of 23.71 and 1140.9% above the Semiconductors industry median of 2.59. Applied Materials' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Applied Materials (AMAT), the current Return-on-Tangible-Asset is 32.14% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Materials (AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of $626.84 is trading 187.9% above its estimated GF Value™ of $217.76.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for AMAT:
Return-on-Tangible-Asset: 32.14% (36% above median its 10-year median of 23.71)
GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
Industry Position: 1140.9% above the Semiconductors median (#33 of 1028)
No single metric tells the full story. See the AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
85GF Score
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