Applied Digital (XSWX:APLD) 5-Year RORE % : 8.26% (As of Feb. 2026)


XSWX:APLD Applied Digital Corp XSWX:APLD
38 GF Score
Price CHF27.30
GF Value CHF11.40
! 7 Warning Signs
View Full Analysis

What is Applied Digital 5-Year RORE %?

Applied Digital XSWX:APLD +3.41% 38 5-Year RORE % is 8.26 as of Feb. 2026. GuruFocus rates XSWX:APLD with a GF Score™ of 38/100 and a GF Value™ of CHF11.40. The stock has 7 warning signs investors should review. Among 2,209 Software companies, Applied Digital ranks better than 57.31% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Applied Digital's 5-Year RORE % for the quarter that ended in Feb. 2026 was 8.26%.

The industry rank for Applied Digital's 5-Year RORE % or its related term are showing as below:

XSWX:APLD's 5-Year RORE % is ranked better than
57.31% of 2209 companies
in the Software industry
Industry Median: 2.51 vs XSWX:APLD: 8.26

Applied Digital  (XSWX:APLD) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Applied Digital 5-Year RORE % Related Terms


Applied Digital 5-Year RORE % Historical Data

* Premium members only.

The historical data trend for Applied Digital's 5-Year RORE % 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.

Applied Digital 5-Year RORE % Chart

Applied Digital Annual Data
Trend May05 May06 May07 May08 May20 May21 May22 May23 May24 May25
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Applied Digital Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 24.77 6.80 8.26

XSWX:APLD vs : 5-Year RORE % Comparison

For the Information Technology Services subindustry, Applied Digital's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Software Industry

For the Software industry and Technology sector, Applied Digital's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Applied Digital's 5-Year RORE % falls into.


XSWX:APLD
38GF Score
Applied Digital Corp XSWX:APLD
5-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Applied Digital 5-Year RORE % Calculation

Applied Digital's 5-Year RORE % for the quarter that ended in Feb. 2026 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( -0.74--0.431 )/( -3.741-0 )
=-0.309/-3.741
=8.26 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Feb. 2026 and 5-year before.

Frequently Asked Questions Learn more about 5-Year RORE % →
What does a 5-Year RORE % of 8.26 mean?
Applied Digital (XSWX:APLD) has a 5-Year RORE % of 8.26 as of Feb. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #943 out of 2209 companies in the Software industry, placing it in the top 42.7%.
Is Applied Digital's 5-Year RORE % too high?
Applied Digital's current 5-Year RORE % is 8.26. The Software industry median 5-Year RORE % is 2.51. Applied Digital's value of 8.26 is 229.1% above this industry median. Based on the distribution chart, Applied Digital ranks #943 out of 2209 companies in the Software industry, which is above 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 5-Year RORE % compare to ?
According to the Software industry distribution chart, Applied Digital ranks #943 out of 2209 companies for 5-Year RORE %. This puts Applied Digital in the upper half of its industry. The industry median 5-Year RORE % is 2.51. Applied Digital's value of 8.26 is 229.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Software company?
The median 5-Year RORE % among Software companies is 2.51, based on 2,209 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Digital's current 5-Year RORE % of 8.26 is 229.1% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Applied Digital and its competitors. For the Software industry, the median 5-Year RORE % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current 5-Year RORE % is 8.26. 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 5-Year RORE % of 8.26. 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 5-Year RORE % is 8.26 and 229.1% above the Software industry median of 2.51. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Applied Digital (XSWX:APLD), the current 5-Year RORE % is 8.26 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:

  • 5-Year RORE %: 8.26
  • GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
  • GF Score™: 38/100 with 7 warning signs
  • Industry Position: 229.1% above the Software median (#943 of 2209)

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 Business Description

Comparable Companies
Address 3811 Turtle Creek Boulevard, Suite 2100, Dallas, TX, USA, 75219
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

Get the complete analysis for XSWX:APLD

5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF27.30
Price
CHF11.40
GF Value