APLD Applied Digital Corporation - Fundamental Analysis
BEARISH
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APLD Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Information Technology Services
Current Price
Live
$27.05
Analyst Target
$45.27
+67.4%
Upside
52W High
$42.27
52W Low
$3.31
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Mar 14, 2026
Market cap
$7.56B
P/E
N/A
ROE
-7.9%
Profit margin
-47.4%
Debt/Equity
1.26
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
85%
Analysis Accuracy
APLD's deterministic health scores signal severe financial distress: the Piotroski F-Score of 1/9 indicates extreme weakness in operational and financial health, while the absence of an Altman Z-Score raises red flags for potential bankruptcy risk. Despite a remarkable 250% YoY revenue growth and strong earnings surprises in recent quarters, the company operates at a deep loss with a -47.35% profit margin and negative ROE, undermining long-term sustainability. Insider selling totaling $18.85M over six months, including large sales by the CEO and directors, contradicts the 'strong_buy' analyst consensus and suggests internal skepticism. The stock trades at a premium valuation (Price/Sales: 28.65, Price/Book: 5.21) with no intrinsic value or Graham Number available, reflecting speculative pricing rather than fundamental strength.
Key Strengths
Exceptional 250.10% YoY revenue growth indicates strong market traction and expansion
Recent quarters have consistently beaten earnings estimates with average surprise of 69.94%
High insider selling volume may reflect strategic liquidity events rather than panic
Strong analyst consensus with 'strong_buy' rating from 11 analysts
Significant 5-year stock appreciation (+457.7%) suggests strong investor momentum
Key Risks
Piotroski F-Score of 1/9 indicates severe financial deterioration and operational weakness
Negative profit margin (-47.35%) and ROE (-7.90%) signal unsustainable business model
Insider selling of $18.85M in 6 months, including CEO and directors, is a major bearish signal
No available Altman Z-Score raises potential bankruptcy risk; debt/equity ratio of 1.26 is high
Valuation metrics (P/S: 28.65, P/B: 5.21) are extremely elevated without earnings support
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
31
Weak
25
65
50
15
0
AI Verdict
Weak
Key drivers: Extremely low Piotroski F-Score (1/9), Negative profitability and ROE, High debt/equity and lack of Altman Z-Score, Speculative valuation without earnings support, Bearish insider activity
Confidence
85%
Value
25/100
Ref P/E, PEG, Graham Number
Positives
- High revenue growth suggests potential future value
- Strong analyst target price ($45.27) implies upside potential
Watchpoints
- No Graham Number or intrinsic value available
- Price/Sales (28.65) and Price/Book (5.21) are extremely high
- Negative earnings and no forward P/E support valuation
Future
65/100
Ref Growth rates
Positives
- 250.10% YoY revenue growth indicates strong market demand
- Recent earnings surprises suggest potential for future beat potential
- High growth expectations are priced into the stock
Watchpoints
- Negative earnings and ROIC indicate lack of sustainable profitability
- Earnings growth is negative (-16.7% YoY) despite revenue growth
- Q/Q EPS growth is -133.3%, signaling worsening profitability
Past
50/100
Ref Historical trends
Positives
- Consistent earnings beat in 3 of last 4 quarters
- Historical revenue growth has been strong over multiple quarters
- Stock has delivered exceptional returns (5Y: +457.7%)
Watchpoints
- Multiple quarters with large negative surprises (e.g., -260% in Q1 2024)
- Earnings have been negative for 17 consecutive quarters
- Profitability has deteriorated despite revenue growth
Health
15/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- High current and quick ratios (4.82 and 3.43) suggest strong short-term liquidity
- High cash levels (implied by liquidity ratios) may support operations
Watchpoints
- Piotroski F-Score of 1/9 indicates severe financial distress
- Debt/Equity ratio of 1.26 is high for a tech services firm
- No Altman Z-Score available; risk of distress is unquantified but elevated
- Negative ROE and ROA indicate poor capital efficiency
- Negative operating margin (-24.45%) shows core operations are unprofitable
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout ratio
- Dividend strength is 0/100
- Company is not generating profits to support dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$27.05
Analyst Target
$45.27
Upside/Downside
+67.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for APLD and closest competitors.
Updated 2026-03-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
APLD
Applied Digital Corporation
Primary
|
+457.7% | +1287.2% | +330.7% | +44.8% | -26.1% | +7.6% |
|
AAOI
Applied Optoelectronics, Inc.
Peer
|
+970.9% | +3539.5% | +510.0% | +257.6% | +100.0% | +1.3% |
|
APPF
AppFolio, Inc.
Peer
|
+21.3% | +44.8% | -16.5% | -37.5% | -3.5% | -9.8% |
|
ARW
Arrow Electronics, Inc.
Peer
|
+11.2% | +0.7% | -2.2% | -8.7% | +3.7% | -1.3% |
|
ALGM
Allegro MicroSystems, Inc.
Peer
|
+15.8% | -31.1% | +18.6% | +4.5% | -27.3% | -2.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
N/A
Forward P/E
-30.22
PEG Ratio
N/A
P/B Ratio
5.21
P/S Ratio
28.65
EV/Revenue
33.64
EV/EBITDA
414.75
Market Cap
$7.56B
Profitability
Profit margins and return metrics
Profit Margin
-47.35%
Operating Margin
-24.45%
Gross Margin
19.61%
ROE
-7.9%
ROA
-1.49%
Growth
Revenue and earnings growth rates
Revenue Growth
+250.1%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.26
Moderate
Current Ratio
4.82
Strong
Quick Ratio
3.43
Excellent
Cash/Share
$6.84
Quarterly Earnings History
EPS performance vs analyst estimates
2026-04-09
$N/A
2026-01-07
$-0.07
+43.2% surprise
2025-10-09
$-0.03
+80.7% surprise
2025-07-30
$-0.03
+85.9% surprise
Technology Sector Comparison
Comparing APLD against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
Return on Equity (ROE)
-7.9%
This Stock
vs
-8.13%
Sector Avg
-2.9%
(Below Avg)
Profit Margin
-47.35%
This Stock
vs
-7.75%
Sector Avg
+510.6%
(Superior)
Debt to Equity
1.26
This Stock
vs
0.76
Sector Avg
+64.7%
(Higher)
Revenue Growth
250.1%
This Stock
vs
56.87%
Sector Avg
+339.8%
(Fast Growth)
Current Ratio
4.82
This Stock
vs
3.33
Sector Avg
+44.7%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
APLD
Applied Digital Corporation
|
BEARISH | $7.56B | - | -7.9% | -47.4% | $27.05 | |
|
AAOI
Applied Optoelectronics, Inc.
|
BEARISH | $7.28B | - | -7.9% | -8.4% | $96.81 | |
|
APPF
AppFolio, Inc.
|
BEARISH | $6.21B | 44.46 | 26.5% | 14.8% | $172.5 | |
|
ARW
Arrow Electronics, Inc.
|
NEUTRAL | $6.01B | 13.08 | 7.6% | 1.6% | $116.66 | |
|
ALGM
Allegro MicroSystems, Inc.
|
BEARISH | $5.77B | - | -1.4% | -1.6% | $31.13 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-02-06 | ZHANG JASON GECHEN | President | Stock Award | 500,000 | - |
| 2026-02-06 | MOHMAND MOHAMMAD SAIDAL LAVANWAY | Chief Financial Officer | Stock Award | 250,000 | - |
| 2026-01-29 | HASTINGS CHUCK | Director | Sale | 45,987 | $1,773,719 |
| 2026-01-22 | MILLER DOUGLAS S | Director | Gift | 6,000 | - |
| 2026-01-16 | CUMMINS WESLEY | Chief Executive Officer | Sale | 165,000 | $6,009,300 |
| 2026-01-15 | NOTTENBURG RICHARD N | Director | Sale | 23,606 | $834,860 |
| 2026-01-12 | MILLER DOUGLAS S | Director | Sale | 10,000 | $385,400 |
| 2026-01-06 | CUMMINS WESLEY | Chief Executive Officer | Stock Award | 1,500,000 | - |
| 2025-11-28 | MILLER DOUGLAS S | Director | Sale | 8,000 | $215,840 |
| 2025-11-25 | ZHANG JASON GECHEN | Officer | Stock Award | 170,000 | - |
| 2025-11-24 | BENSON ELLA G | Director | Sale | 8,581 | $199,251 |
| 2025-11-07 | MILLER DOUGLAS S | Director | Stock Award | 7,747 | - |
| 2025-11-07 | NOTTENBURG RICHARD N | Director | Stock Award | 7,747 | - |
| 2025-11-07 | LEE RACHEL H | Director | Stock Award | 7,747 | - |
| 2025-11-07 | BENSON ELLA G | Director | Stock Award | 7,747 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
STRONG_BUY
11 analysts
B. Riley Securities
2026-01-09
Buy
Buy
Roth Capital
2026-01-08
Buy
Buy
Needham
2026-01-08
Buy
Buy
Freedom Capital Markets
2026-01-07
Buy
Northland Capital Markets
2025-12-30
Outperform
Outperform
Lake Street
2025-12-30
Buy
Buy
Needham
2025-10-29
Buy
Buy
Craig-Hallum
2025-10-23
Buy
Buy
Northland Capital Markets
2025-10-10
Outperform
Outperform
Lake Street
2025-10-10
Buy
Buy
Past News Coverage
Recent headlines mentioning APLD from our newsroom.
Newest → oldest
No matching news yet.