ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Applied Digital's annualizedNet Income for the quarter that ended in Feb. 2026 was CHF-397.2 Mil.
Applied Digital's average Total Assets over the quarter that ended in Feb. 2026 was CHF5,738.1 Mil. Therefore, Applied Digital's annualized ROA % for the quarter that ended in Feb. 2026 was -6.92%.
The historical rank and industry rank for Applied Digital's ROA % or its related term are showing as below:
XSWX:APLD'
s ROA % Range Over the Past 10 Years
Min: -119.84 Med: -25.45 Max: -3.77
Current: -5.34
During the past 13 years, Applied Digital's highest ROA % was -3.77%. The lowest was -119.84%. And the median was -25.45%.
XSWX:APLD's ROA % is ranked worse than 69.06% of 2883
companies
in the Software industry
Industry Median: 1.65
vs XSWX:APLD: -5.34
Applied Digital (XSWX:APLD) 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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
Applied Digital ROA % Related Terms
Applied Digital ROA % Historical Data
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The historical data trend for Applied Digital's ROA % 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.
For the Information Technology Services subindustry, Applied Digital'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.
Applied Digital ROA % vs Software Industry
For the Software industry and Technology sector, Applied Digital's ROA % distribution charts can be found below:
* The bar in red indicates where Applied Digital'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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Applied Digital (XSWX:APLD) has a ROA % of -6.92% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #1991 out of 2883 companies in the Software industry, placing it in the top 69.1%.
Is Applied Digital's ROA % too high?
Applied Digital's current ROA % is -6.92%. Based on the distribution chart, Applied Digital ranks #1991 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 ROA % compare to ?
According to the Software industry distribution chart, Applied Digital ranks #1991 out of 2883 companies for ROA %. This places Applied Digital in the lower half of its industry. The industry median ROA % is 1.65. 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 Software company?
The median ROA % among Software companies is 1.65, based on 2,883 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 Applied Digital and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current ROA % 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 ROA % 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 ROA % 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Applied Digital (XSWX:APLD), the current ROA % 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:
ROA %: -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
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