Applied EnergeticsAERG -6.02%26 Return-on-Tangible-Equity is -240.33% as of Mar. 2026. GuruFocus rates AERG with a GF Score™ of 26/100 and a GF Value™ of $0.33 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,378 Hardware companies, Applied Energetics ranks worse than 99.24% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Applied Energetics's annualized net income for the quarter that ended in Mar. 2026 was $-15.23 Mil. Applied Energetics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $6.34 Mil. Therefore, Applied Energetics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -240.33%.
The historical rank and industry rank for Applied Energetics's Return-on-Tangible-Equity or its related term are showing as below:
AERG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -911.57 Med: -232.33 Max: -135.08
Current: -434.13
During the past 13 years, Applied Energetics's highest Return-on-Tangible-Equity was -135.08%. The lowest was -911.57%. And the median was -232.33%.
AERG's Return-on-Tangible-Equity is ranked worse than 99.24% of 2378
companies
in the Hardware industry
Industry Median: 5.25
vs AERG: -434.13
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Applied Energetics Return-on-Tangible-Equity Related Terms
Applied Energetics Return-on-Tangible-Equity Historical Data
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The historical data trend for Applied Energetics's Return-on-Tangible-Equity 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.
AERG vs MVIS, ARBE, USBC: Return-on-Tangible-Equity Comparison
For the Scientific & Technical Instruments subindustry, Applied Energetics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Energetics Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Applied Energetics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Applied Energetics's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -240.33% mean?
Applied Energetics (AERG) has a Return-on-Tangible-Equity of -240.33% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Applied Energetics and its competitors. According to the industry distribution chart, Applied Energetics ranks #2360 out of 2378 companies in the Hardware industry, placing it in the top 99.2%.
Is Applied Energetics' Return-on-Tangible-Equity too high?
Applied Energetics' current Return-on-Tangible-Equity is -240.33%. Based on the distribution chart, Applied Energetics ranks #2360 out of 2378 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Applied Energetics has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Energetics' Return-on-Tangible-Equity compare to MVIS and ARBE?
According to the Hardware industry distribution chart, Applied Energetics ranks #2360 out of 2378 companies for Return-on-Tangible-Equity. This places Applied Energetics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.25. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.25, based on 2,378 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Applied Energetics and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Energetics's current Return-on-Tangible-Equity is -240.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Energetics stock overvalued right now?
Based on GuruFocus' analysis, Applied Energetics (AERG) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.33, compared to a current price of $1.25 — trading 278.8% above its estimated fair value. The current Return-on-Tangible-Equity is -240.33%. Applied Energetics' overall GF Score™ is 26/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Applied Energetics (AERG), the current Return-on-Tangible-Equity is -240.33% 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 Applied Energetics (AERG) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Energetics stock appears to be overvalued.
The current stock price of $1.25 is trading 278.8% above its estimated GF Value™ of $0.33.
GuruFocus considers Applied Energetics to be Significantly Overvalued.
Key valuation signals for AERG:
Return-on-Tangible-Equity: -240.33%
GF Value™: $0.33 vs. price of $1.25 (278.8% above fair value)
No single metric tells the full story. See the AERG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Energetics Inc specializes in laser and photonics systems, particularly fiber-based ultrashort pulse (USP) laser technologies. Its powerful, dual-use systems are designed for integration and deployment on numerous potential defense platforms for the delivery of high-intensity, ultrashort pulses of light to disable or destroy a target or disrupt a mission. These technologies have applications in both national security and commercial markets. The company operates as one operating segment with a focus on the development and manufacture of high-performance lasers and optical systems, and integrated guided energy systems, for prospective defense, national security, industrial, biomedical, and scientific customers across the world.
26GF Score
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