Applied MaterialsXTER:AP2 +1.00%81 ROA % is 28.87% as of Apr. 2026, which is 43% above its 10-year median of 20.25. GuruFocus rates XTER:AP2 with a GF Score™ of 81/100 and a GF Value™ of €190.67 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Semiconductors companies, Applied Materials ranks better than 96.5% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Applied Materials's annualizedNet Income for the quarter that ended in Apr. 2026 was €9,597 Mil.
Applied Materials's average Total Assets over the quarter that ended in Apr. 2026 was €33,240 Mil. Therefore, Applied Materials's annualized ROA % for the quarter that ended in Apr. 2026 was 28.87%.
The historical rank and industry rank for Applied Materials's ROA % or its related term are showing as below:
XTER:AP2'
s ROA % Range Over the Past 10 Years
Min: 11.52 Med: 20.25 Max: 24.83
Current: 23.36
During the past 13 years, Applied Materials's highest ROA % was 24.83%. The lowest was 11.52%. And the median was 20.25%.
XTER:AP2's ROA % is ranked better than 96.5% of 1028
companies
in the Semiconductors industry
Industry Median: 2.45
vs XTER:AP2: 23.36
Applied Materials (XTER:AP2) 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 (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 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 Materials ROA % Related Terms
Applied Materials ROA % Historical Data
* Premium members only.
The historical data trend for Applied Materials'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 Semiconductor Equipment & Materials subindustry, Applied Materials'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 Materials ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's ROA % distribution charts can be found below:
* The bar in red indicates where Applied Materials'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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Applied Materials (XTER:AP2) has a ROA % of 28.87% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Applied Materials and its competitors. This is 43% above median its historical median of 20.25. Over the past decade, Applied Materials' ROA % has ranged from 11.52 to 24.83. According to the industry distribution chart, Applied Materials ranks #36 out of 1028 companies in the Semiconductors industry, placing it in the top 3.5%.
Is Applied Materials' ROA % too high?
Applied Materials' current ROA % of 28.87% is 43% above median its 10-year median of 20.25. Over the past 10 years, this metric has ranged from a low of 11.52 to a high of 24.83. The Semiconductors industry median ROA % is 2.45. Applied Materials' value of 28.87% is 1078.4% above this industry median. Based on the distribution chart, Applied Materials ranks #36 out of 1028 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Applied Materials has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' ROA % compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #36 out of 1028 companies for ROA %. This places Applied Materials in the top 4% of its industry — outperforming the majority of peers. The industry median ROA % is 2.45. Applied Materials' value of 28.87% is 1078.4% above this benchmark. Historically, Applied Materials' own ROA % has ranged from 11.52 to 24.83 over the past decade. While the company's 10-year median is 20.25 vs. the industry median of 2.45, Applied Materials has consistently been above the industry average. 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 2.45, 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. Applied Materials's current ROA % of 28.87% is 1078.4% above the industry median. 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 Materials and its competitors. For the Semiconductors industry, the median ROA % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current ROA % is 28.87%, which is 43% above median its own 10-year median of 20.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Based on GuruFocus' analysis, Applied Materials (XTER:AP2) is currently considered Significantly Overvalued. The stock's GF Value™ is €190.67, compared to a current price of €516.10 — trading 170.7% above its estimated fair value. The current ROA % is 28.87%, which is 43% above median its 10-year median of 20.25 and 1078.4% above the Semiconductors industry median of 2.45. Applied Materials' overall GF Score™ is 81/100 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 Applied Materials (XTER:AP2), the current ROA % is 28.87% as of Apr. 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 Materials (XTER:AP2) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of €516.10 is trading 170.7% above its estimated GF Value™ of €190.67.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XTER:AP2:
ROA %: 28.87% (43% above median its 10-year median of 20.25)
GF Value™: €190.67 vs. price of €516.10 (170.7% above fair value)
Industry Position: 1078.4% above the Semiconductors median (#36 of 1028)
No single metric tells the full story. See the XTER:AP2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
81GF Score
Get the complete analysis for XTER:AP2
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XTER:AP2 has been successfully added to your 
