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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Applied Optoelectronics's annualized net income for the quarter that ended in Mar. 2026 was €-49.4 Mil. Applied Optoelectronics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €784.4 Mil. Therefore, Applied Optoelectronics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -6.30%.
The historical rank and industry rank for Applied Optoelectronics's Return-on-Tangible-Equity or its related term are showing as below:
FRA:A59'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -87.5 Med: -21.55 Max: 26.84
Current: -7.01
During the past 13 years, Applied Optoelectronics's highest Return-on-Tangible-Equity was 26.84%. The lowest was -87.50%. And the median was -21.55%.
FRA:A59's Return-on-Tangible-Equity is ranked worse than 79.62% of 2385
companies
in the Hardware industry
Industry Median: 5.32
vs FRA:A59: -7.01
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Applied Optoelectronics Return-on-Tangible-Equity Related Terms
Applied Optoelectronics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Applied Optoelectronics's Return-on-Tangible-Equity 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.
FRA:A59 vs VIAV, ZBRA, VSAT: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Applied Optoelectronics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Optoelectronics Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Applied Optoelectronics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Applied Optoelectronics's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -6.30% mean?
Applied Optoelectronics (FRA:A59) has a Return-on-Tangible-Equity of -6.30% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Applied Optoelectronics and its competitors. According to the industry distribution chart, Applied Optoelectronics ranks #1899 out of 2385 companies in the Hardware industry, placing it in the top 79.6%.
Is Applied Optoelectronics' Return-on-Tangible-Equity too high?
Applied Optoelectronics' current Return-on-Tangible-Equity is -6.30%. Based on the distribution chart, Applied Optoelectronics ranks #1899 out of 2385 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Applied Optoelectronics has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Optoelectronics' Return-on-Tangible-Equity compare to VIAV and ZBRA?
According to the Hardware industry distribution chart, Applied Optoelectronics ranks #1899 out of 2385 companies for Return-on-Tangible-Equity. This places Applied Optoelectronics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.32. 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-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.32, based on 2,385 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Applied Optoelectronics and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Optoelectronics's current Return-on-Tangible-Equity is -6.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Optoelectronics stock overvalued right now?
Based on GuruFocus' analysis, Applied Optoelectronics (FRA:A59) is currently considered Significantly Overvalued. The stock's GF Value™ is €17.51, compared to a current price of €86.68 — trading 395% above its estimated fair value. The current Return-on-Tangible-Equity is -6.30%. Applied Optoelectronics' overall GF Score™ is 46/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Applied Optoelectronics (FRA:A59), the current Return-on-Tangible-Equity is -6.30% 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 Applied Optoelectronics (FRA:A59) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Optoelectronics stock appears to be overvalued.
The current stock price of €86.68 is trading 395% above its estimated GF Value™ of €17.51.
GuruFocus considers Applied Optoelectronics to be Significantly Overvalued.
Key valuation signals for FRA:A59:
Return-on-Tangible-Equity: -6.30%
GF Value™: €17.51 vs. price of €86.68 (395% above fair value)
No single metric tells the full story. See the FRA:A59 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies, and modules to meet turn-key equipment. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The Company has manufacturing and research and development facilities located in the U.S., Taiwan, and China.
46GF Score
Get the complete analysis for FRA:A59
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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