(APLD) Applied Digital - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NASDAQ (USA) | Market Cap: 13.220m USD | Total Return: 504.4% in 12m
Avg Turnover: 791M
Qual. Beats: 1
Rev. Trend: 96.1%
Qual. Beats: 3
Warnings
Share dilution 22.1% YoY
Interest Coverage Ratio -2.2 is critical
Beneish M-Score -1.44 > -1.5 - likely earnings manipulation
Altman Z'' 0.88 < 1.0 - financial distress zone
Volatile
Tailwinds
Rs(ibd) Leader, Idiosyncratic Leader, Confidence
Applied Digital Corporation (APLD) designs and operates digital infrastructure specifically for high-performance computing (HPC) and artificial intelligence industries across North America. The company manages two primary segments: Data Center Hosting and HPC Hosting, providing specialized facilities for GPU-intensive workloads and cryptocurrency mining. Originally focused on blockchain, the firm rebranded in 2022 to reflect its pivot toward the broader AI and machine learning infrastructure market.
The business model relies on high-density power capacity, evidenced by a significant lease agreement with CoreWeave for 150MW at its North Dakota campus. Data center operators in the HPC sector face high capital expenditures but benefit from the increasing demand for specialized cooling and power density required by modern AI hardware. For a deeper dive into these fundamentals, you might find ValueRays analysis useful. Applied Digital remains positioned as a provider of the physical layer necessary for scaling large language models and complex computational tasks.
- GPU Cloud revenue scales via CoreWeave capacity and hardware deployment
- AI data center buildout drives capital expenditure and financing needs
- Transition from crypto hosting to high-margin HPC infrastructure improves EBITDA
- Strategic partnerships and equity investments validate liquid cooling technology roadmap
| Net Income: -186.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.29 > 0.02 and ΔFCF/TA 11.69 > 1.0 |
| NWC/Revenue: 396.4% < 20% (prev -62.07%; Δ 458.5% < -1%) |
| CFO/TA -0.01 > 3% & CFO -36.0m > Net Income -186.3m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.38 > 1.5 & < 3 |
| Outstanding Shares: last quarter (271.7m) vs 12m ago 22.12% < -2% |
| Gross Margin: 27.07% > 18% (prev 0.12%; Δ 2.69k% > 0.5%) |
| Asset Turnover: 8.94% > 50% (prev 11.26%; Δ -2.32% > 0%) |
| Interest Coverage Ratio: -2.16 > 6 (EBITDA TTM -39.4m / Interest Expense TTM 35.7m) |
| A: 0.23 (Total Current Assets 2.43b - Total Current Liabilities 1.02b) / Total Assets 6.25b |
| B: -0.09 (Retained Earnings -583.1m / Total Assets 6.25b) |
| C: -0.02 (EBIT TTM -77.0m / Avg Total Assets 3.98b) |
| D: -0.16 (Book Value of Equity -582.8m / Total Liabilities 3.68b) |
| Altman-Z'' = 0.88 = B |
| DSRI: 0.77 (Receivables 20.8m/14.6m, Revenue 355.5m/192.2m) |
| GMI: 0.46 (GM 27.07% / 12.33%) |
| AQI: 3.84 (AQ_t 0.10 / AQ_t-1 0.02) |
| SGI: 1.85 (Revenue 355.5m / 192.2m) |
| TATA: -0.02 (NI -186.3m - CFO -36.0m) / TA 6.25b) |
| Beneish M = -1.44 (Cap -4..+1) = D |
As of May 25, 2026, the stock is trading at USD 45.87 with a total of 22,191,781 shares traded.
Over the past week, the price has changed by +7.78%,
over one month by +31.13%,
over three months by +49.61% and
over the past year by +504.35%.
Applied Digital has received a consensus analysts rating of 4.44. Therefore, it is recommended to buy APLD.
- StrongBuy: 5
- Buy: 3
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 55.1 | 20.1% |
P/E Forward = 526.3158
P/S = 41.4071
P/B = 8.6785
P/EG = 1.8288
Revenue TTM = 355.5m USD
EBIT TTM = -77.0m USD
EBITDA TTM = -39.4m USD
Long Term Debt = 2.59b USD (from longTermDebt, last quarter)
Short Term Debt = 167.4m USD (from shortTermDebt, last quarter)
Debt = 2.96b USD (from shortLongTermDebtTotal, last quarter) + Leases 134.8m
Net Debt = 1.23b USD (calculated: Debt 2.96b - CCE 1.73b)
Enterprise Value = 14.5b USD (13.2b + Debt 2.96b - CCE 1.73b)
Interest Coverage Ratio = -2.16 (Ebit TTM -77.0m / Interest Expense TTM 35.7m)
EV/FCF = -7.98x (Enterprise Value 14.5b / FCF TTM -1.81b)
FCF Yield = -12.53% (FCF TTM -1.81b / Enterprise Value 14.5b)
FCF Margin = -509.5% (FCF TTM -1.81b / Revenue TTM 355.5m)
Net Margin = -52.41% (Net Income TTM -186.3m / Revenue TTM 355.5m)
Gross Margin = 27.07% ((Revenue TTM 355.5m - Cost of Revenue TTM 259.2m) / Revenue TTM)
Gross Margin QoQ = 42.49% (prev 20.57%)
Tobins Q-Ratio = 2.31 (Enterprise Value 14.5b / Total Assets 6.25b)
Interest Expense / Debt = 1.20% (Interest Expense 35.7m / Debt 2.96b)
Taxrate = 21.0% (US default 21%)
NOPAT = -60.9m (EBIT -77.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.38 (Total Current Assets 2.43b / Total Current Liabilities 1.02b)
Debt / Equity = 1.87 (Debt 2.96b / totalStockholderEquity, last quarter 1.58b)
Debt / EBITDA = -31.24 (negative EBITDA) (Net Debt 1.23b / EBITDA -39.4m)
Debt / FCF = -0.68 (negative FCF - burning cash) (Net Debt 1.23b / FCF TTM -1.81b)
Total Stockholder Equity = 1.18b (last 4 quarters mean from totalStockholderEquity)
RoA = -4.68% (Net Income -186.3m / Total Assets 6.25b)
RoE = -10.58% (Net Income TTM -186.3m / Total Stockholder Equity 1.76b)
RoCE = -1.77% (EBIT -77.0m / Capital Employed (Equity 1.76b + L.T.Debt 2.59b))
RoIC = -1.13% (negative operating profit) (NOPAT -60.9m / Invested Capital 5.39b)
WACC = 16.55% (E(13.2b)/V(16.2b) * Re(20.05%) + D(2.96b)/V(16.2b) * Rd(1.20%) * (1-Tc(0.21)))
Discount Rate = 20.05% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 86.67 | Cagr: 49.66%
[DCF] Fair Price = unknown (Cash Flow -1.81b)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.94 | # QB: 1
Revenue Correlation: 96.12 | Revenue CAGR: 72.43% | SUE: 2.33 | # QB: 3
EPS next Quarter (2026-08-31): EPS=-0.18 | Chg30d=+29.88% | Revisions=N/A | Analysts=1
EPS current Year (2026-05-31): EPS=-0.62 | Chg30d=+0.79% | Revisions=-56% | GrowthEPS=+46.7% | GrowthRev=+92.6%
EPS next Year (2027-05-31): EPS=-0.70 | Chg30d=+21.79% | Revisions=N/A | GrowthEPS=-31.7% | GrowthRev=+66.7%
[Analyst] Revisions Ratio: -56%