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 Digital's annualizedNet Income for the quarter that ended in Feb. 2026 was CHF-397.2 Mil. Applied Digital's average total tangible assets for the quarter that ended in Feb. 2026 was CHF5,738.1 Mil. Therefore, Applied Digital's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2026 was -6.92%.
The historical rank and industry rank for Applied Digital's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:APLD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -127.84 Med: -25.81 Max: -3.77
Current: -5.34
During the past 13 years, Applied Digital's highest Return-on-Tangible-Asset was -3.77%. The lowest was -127.84%. And the median was -25.81%.
XSWX:APLD's Return-on-Tangible-Asset is ranked worse than 67.22% of 2883
companies
in the Software industry
Industry Median: 2.02
vs XSWX:APLD: -5.34
Applied Digital (XSWX:APLD) 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.
Applied Digital Return-on-Tangible-Asset Related Terms
Applied Digital Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Applied Digital'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.
XSWX:APLD vs : Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Applied Digital'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 Digital Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Applied Digital's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Applied Digital'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 (Feb. 2026) net income data.
What does a Return-on-Tangible-Asset of -6.92% mean?
Applied Digital (XSWX:APLD) has a Return-on-Tangible-Asset of -6.92% as of Feb. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #1938 out of 2883 companies in the Software industry, placing it in the top 67.2%.
Is Applied Digital's Return-on-Tangible-Asset too high?
Applied Digital's current Return-on-Tangible-Asset is -6.92%. Based on the distribution chart, Applied Digital ranks #1938 out of 2883 companies in the Software industry, which is below the industry midpoint. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Return-on-Tangible-Asset compare to ?
According to the Software industry distribution chart, Applied Digital ranks #1938 out of 2883 companies for Return-on-Tangible-Asset. This places Applied Digital in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.02. 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 2.02, based on 2,883 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. 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 Digital and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current Return-on-Tangible-Asset is -6.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Return-on-Tangible-Asset of -6.92%. The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Return-on-Tangible-Asset is -6.92%. Applied Digital's overall GF Score™ is 38/100 with 7 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 Digital (XSWX:APLD), the current Return-on-Tangible-Asset is -6.92% as of Feb. 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 Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Return-on-Tangible-Asset: -6.92%
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
38GF Score
Get the complete analysis for XSWX:APLD
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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