ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Valens Semiconductor's annualizedNet Income for the quarter that ended in Mar. 2026 was $-33.16 Mil.
Valens Semiconductor's average Total Assets over the quarter that ended in Mar. 2026 was $131.56 Mil. Therefore, Valens Semiconductor's annualized ROA % for the quarter that ended in Mar. 2026 was -25.21%.
The historical rank and industry rank for Valens Semiconductor's ROA % or its related term are showing as below:
VLN'
s ROA % Range Over the Past 10 Years
Min: -24.8 Med: -19.71 Max: -10.45
Current: -22.57
During the past 7 years, Valens Semiconductor's highest ROA % was -10.45%. The lowest was -24.80%. And the median was -19.71%.
VLN's ROA % is ranked worse than 93.39% of 1028
companies
in the Semiconductors industry
Industry Median: 2.43
vs VLN: -22.57
Valens Semiconductor (NYSE:VLN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Semiconductors subindustry, Valens Semiconductor's ROA %, along with its competitors' market caps and ROA % 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.
Valens Semiconductor ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Valens Semiconductor's ROA % distribution charts can be found below:
* The bar in red indicates where Valens Semiconductor's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Valens Semiconductor (VLN) has a ROA % of -25.21% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Valens Semiconductor and its competitors. According to the industry distribution chart, Valens Semiconductor ranks #960 out of 1028 companies in the Semiconductors industry, placing it in the top 93.4%.
Is Valens Semiconductor's ROA % too high?
Valens Semiconductor's current ROA % is -25.21%. Based on the distribution chart, Valens Semiconductor ranks #960 out of 1028 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Valens Semiconductor has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's ROA % compare to QUIK and GSIT?
According to the Semiconductors industry distribution chart, Valens Semiconductor ranks #960 out of 1028 companies for ROA %. This places Valens Semiconductor in the lower half of its industry. The industry median ROA % is 2.43. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.43, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Valens Semiconductor and its competitors. For the Semiconductors industry, the median ROA % is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valens Semiconductor's current ROA % is -25.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Fairly Valued. The stock's GF Value™ is $2.08, compared to a current price of $2.02 — trading 2.9% below its estimated fair value. The current ROA % is -25.21%. Valens Semiconductor's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Valens Semiconductor (VLN), the current ROA % is -25.21% 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 Valens Semiconductor (VLN) Overvalued in 2026?
Based on GuruFocus' analysis, Valens Semiconductor stock appears to be undervalued.
The current stock price of $2.02 is trading 2.9% below its estimated GF Value™ of $2.08.
GuruFocus considers Valens Semiconductor to be Fairly Valued.
Key valuation signals for VLN:
ROA %: -25.21%
GF Value™: $2.08 vs. price of $2.02 (2.9% below fair value)
No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
71GF Score
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