PDF SolutionsPDFS -8.23%77 Return-on-Tangible-Asset is 6.88% as of Mar. 2026. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.61 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,882 Software companies, PDF Solutions ranks better than 53.23% 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. PDF Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was $19.2 Mil. PDF Solutions's average total tangible assets for the quarter that ended in Mar. 2026 was $278.5 Mil. Therefore, PDF Solutions's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.88%.
The historical rank and industry rank for PDF Solutions's Return-on-Tangible-Asset or its related term are showing as below:
PDFS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -16.88 Med: -1.02 Max: 4.5
Current: 2.79
During the past 13 years, PDF Solutions's highest Return-on-Tangible-Asset was 4.50%. The lowest was -16.88%. And the median was -1.02%.
PDFS's Return-on-Tangible-Asset is ranked better than 53.23% of 2882
companies
in the Software industry
Industry Median: 2.01
vs PDFS: 2.79
PDF Solutions (NAS:PDFS) Return-on-Tangible-Asset Explanation
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.
PDF Solutions Return-on-Tangible-Asset Related Terms
PDF Solutions Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for PDF Solutions'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.
PDFS vs FSLY, KC, FRSH: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, PDF Solutions'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.
PDF Solutions Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, PDF Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where PDF Solutions'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 (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.88% mean?
PDF Solutions (PDFS) has a Return-on-Tangible-Asset of 6.88% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PDF Solutions and its competitors. According to the industry distribution chart, PDF Solutions ranks #1348 out of 2882 companies in the Software industry, placing it in the top 46.8%.
Is PDF Solutions' Return-on-Tangible-Asset too high?
PDF Solutions' current Return-on-Tangible-Asset is 6.88%. The Software industry median Return-on-Tangible-Asset is 2.01. PDF Solutions' value of 6.88% is 242.3% above this industry median. Based on the distribution chart, PDF Solutions ranks #1348 out of 2882 companies in the Software industry, which is above the industry midpoint. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PDF Solutions' Return-on-Tangible-Asset compare to FSLY and KC?
According to the Software industry distribution chart, PDF Solutions ranks #1348 out of 2882 companies for Return-on-Tangible-Asset. This puts PDF Solutions in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.01. PDF Solutions' value of 6.88% is 242.3% above this benchmark. 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 Software company?
The median Return-on-Tangible-Asset among Software companies is 2.01, based on 2,882 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. PDF Solutions's current Return-on-Tangible-Asset of 6.88% is 242.3% 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 PDF Solutions and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDF Solutions's current Return-on-Tangible-Asset is 6.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDF Solutions stock overvalued right now?
Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.61, compared to a current price of $63.01 — trading 51.4% above its estimated fair value. The current Return-on-Tangible-Asset is 6.88% and 242.3% above the Software industry median of 2.01. PDF Solutions' overall GF Score™ is 77/100 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 PDF Solutions (PDFS), the current Return-on-Tangible-Asset is 6.88% as of Mar. 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 PDF Solutions (PDFS) Overvalued in 2026?
Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued.
The current stock price of $63.01 is trading 51.4% above its estimated GF Value™ of $41.61.
GuruFocus considers PDF Solutions to be Significantly Overvalued.
Key valuation signals for PDFS:
Return-on-Tangible-Asset: 6.88%
GF Value™: $41.61 vs. price of $63.01 (51.4% above fair value)
Industry Position: 242.3% above the Software median (#1348 of 2882)
No single metric tells the full story. See the PDFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.
77GF Score
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