Applied Digital Corp. Fundamental Analysis (NASDAQ: APLD)
Applied Digital Corp. Fundamental Analysis (NASDAQ: APLD)
Applied Digital Corp. (NASDAQ: APLD) shows moderate financial fundamentals with a PE ratio of -32.39, profit margin of -42.31%, and ROE of -16.65%. The company generates $0.6B in annual revenue with strong year-over-year growth of 57.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -33.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze APLD's fundamental strength across five key dimensions:
Efficiency Score
WeakAPLD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAPLD trades at attractive valuation levels.
Growth Score
ExcellentAPLD delivers strong and consistent growth momentum.
Financial Health Score
ModerateAPLD shows balanced financial health with some risks.
Profitability Score
WeakAPLD struggles to sustain strong margins.
Key Financial Metrics
Is APLD Expensive or Cheap?
P/E Ratio
APLD trades at -32.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, APLD's PEG of 1.14 indicates fair valuation.
Price to Book
The market values Applied Digital Corp. at 4.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -31.62 times EBITDA. This is generally considered low.
How Well Does APLD Make Money?
Net Profit Margin
For every $100 in sales, Applied Digital Corp. keeps $-42.31 as profit after all expenses.
Operating Margin
Core operations generate -43.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-16.65 in profit for every $100 of shareholder equity.
ROA
Applied Digital Corp. generates $-2.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Applied Digital Corp. produces operating cash flow of $90.39M, showing steady but balanced cash generation.
Free Cash Flow
Applied Digital Corp. generates weak or negative free cash flow of $-2.80B, restricting financial flexibility.
FCF Per Share
Each share generates $-9.72 in free cash annually.
FCF Yield
APLD converts -33.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-32.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.010
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.17
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How APLD Stacks Against Its Sector Peers
| Metric | APLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -32.39 | 35.21 | Better (Cheaper) |
| ROE | -16.65% | 727.00% | Weak |
| Net Margin | -42.31% | -130589.00% (disorted) | Weak |
| Debt/Equity | 2.86 | 0.40 | Weak (High Leverage) |
| Current Ratio | 4.01 | 5.88 | Strong Liquidity |
| ROA | -2.45% | 253.00% | Weak |
APLD outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Applied Digital Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-559.85%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
Declining