Palladyne AIPDYN -0.17%58 Return-on-Tangible-Equity is -106.60% as of Mar. 2026. GuruFocus rates PDYN with a GF Score™ of 58/100 and a GF Value™ of $1.59 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,474 Software companies, Palladyne AI ranks worse than 87.59% on this metric.
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. Palladyne AI's annualized net income for the quarter that ended in Mar. 2026 was $-50.43 Mil. Palladyne AI's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $47.31 Mil. Therefore, Palladyne AI's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -106.60%.
The historical rank and industry rank for Palladyne AI's Return-on-Tangible-Equity or its related term are showing as below:
PDYN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -462.94 Med: -79.33 Max: 50.22
Current: -55.4
During the past 6 years, Palladyne AI's highest Return-on-Tangible-Equity was 50.22%. The lowest was -462.94%. And the median was -79.33%.
PDYN's Return-on-Tangible-Equity is ranked worse than 87.59% of 2474
companies
in the Software industry
Industry Median: 8.785
vs PDYN: -55.40
Palladyne AI (NAS:PDYN) Return-on-Tangible-Equity Explanation
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.
Palladyne AI Return-on-Tangible-Equity Related Terms
Palladyne AI Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Palladyne AI'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.
PDYN vs ALLT, IIIV, PSFE: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Palladyne AI'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.
Palladyne AI Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Palladyne AI's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Palladyne AI'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 -106.60% mean?
Palladyne AI (PDYN) has a Return-on-Tangible-Equity of -106.60% 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 Palladyne AI and its competitors. According to the industry distribution chart, Palladyne AI ranks #2167 out of 2474 companies in the Software industry, placing it in the top 87.6%.
Is Palladyne AI's Return-on-Tangible-Equity too high?
Palladyne AI's current Return-on-Tangible-Equity is -106.60%. Based on the distribution chart, Palladyne AI ranks #2167 out of 2474 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Palladyne AI has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palladyne AI's Return-on-Tangible-Equity compare to ALLT and IIIV?
According to the Software industry distribution chart, Palladyne AI ranks #2167 out of 2474 companies for Return-on-Tangible-Equity. This places Palladyne AI in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.79. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.79, based on 2,474 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 Palladyne AI and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palladyne AI's current Return-on-Tangible-Equity is -106.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palladyne AI stock overvalued right now?
Based on GuruFocus' analysis, Palladyne AI (PDYN) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.59, compared to a current price of $5.80 — trading 264.8% above its estimated fair value. The current Return-on-Tangible-Equity is -106.60%. Palladyne AI's overall GF Score™ is 58/100 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 Palladyne AI (PDYN), the current Return-on-Tangible-Equity is -106.60% 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 Palladyne AI (PDYN) Overvalued in 2026?
Based on GuruFocus' analysis, Palladyne AI stock appears to be overvalued.
The current stock price of $5.80 is trading 264.8% above its estimated GF Value™ of $1.59.
GuruFocus considers Palladyne AI to be Significantly Overvalued.
Key valuation signals for PDYN:
Return-on-Tangible-Equity: -106.60%
GF Value™: $1.59 vs. price of $5.80 (264.8% above fair value)
No single metric tells the full story. See the PDYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palladyne AI Corp is a software company focused on autonomy for robotic systems and solutions. Its artificial intelligence and machine learning software seeks to revolutionize the capabilities of robots, enabling them to observe, learn, reason, and act in structured and unstructured environments. AI and ML software platform of the company empowers robots to perceive variations or changes in the real-world environment, enabling them to autonomously maneuver and manipulate objects accurately in response. Palladyne AI software has wide application, including in industries such as automotive, aviation, construction, defense, general manufacturing, infrastructure inspection, logistics and warehousing.
58GF Score
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