APLDNEUTRAL

APLD Return on Equity (ROE) Analysis

-5.6%

Higher than 32% of Technology sector peers

Updated 2552h ago·SEC filings & market data

Key Takeaway

Applied Digital's Return on Equity (ROE) of -5.6% means the company generated a loss equal to 5.6% of its shareholders' equity over the past year, indicating it is not producing profit from the capital invested by shareholders.

Sector Performance

32th percentile

APLD

-5.6%

Sector Median

9.1%

Sector Avg

-3.2%

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Deep Analysis

This is far worse than the sector median of 6.9%, placing the company at the 29th percentile among technology peers, meaning 71% of competitors have higher ROE. The trend data is not available — there is no year-over-year change, no quarter-over-quarter change, and no historical values beyond the latest -5.6%, so no direction can be assessed. The combination of a negative ROE with no trend history suggests elevated investment risk, as the company is currently destroying shareholder value without a track record to evaluate improvement. This metric contradicts the overall NEUTRAL verdict, because a negative ROE in a sector where peers earn positive returns is a clear weakness that would typically warrant a bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about APLD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does APLD's Return on Equity (ROE) compare to its sector?

APLD's Return on Equity (ROE) of -5.6% compares to a Technology sector median of 9.1%, placing it in the 32th percentile.

Who are APLD's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: ADI (6.7%), AFRM (1.7%), SQ (0.0%), CRWD (-0.2%), MDB (-1.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.