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AD Array Digital Infrastructure, Inc. - Fundamental Analysis

BEARISH
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AD Stock | Fundamental Analysis & Investment Insights
NYSE Communication Services Telecom Services
Current Price Live
$47.92
Analyst Target
$57.71
+20.4% Upside
52W High
$79.17
52W Low
$44.03

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Confidence Score
78%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a strong Piotroski F-Score of 7/9, indicating solid financial health based on profitability, leverage, and operating efficiency metrics. However, the absence of an Altman Z-Score, deeply negative forward P/E of -228.19, and deteriorating earnings trends raise serious concerns about sustainability. Despite strong revenue growth of 83.1% YoY and a healthy current ratio of 3.59, the company is burning through earnings with an operating margin of -13.26% and a profit margin near zero. Persistent negative earnings surprises, insider selling, and a technical trend score of 0/100 reinforce a deteriorating outlook despite bullish analyst recommendations.

Key Strengths

Strong Piotroski F-Score of 7/9 suggests robust accounting fundamentals and operational efficiency
Exceptional year-over-year revenue growth of 83.10%, significantly above sector average of 22.35%
High gross margin of 56.96%, indicating strong pricing power or cost control in core operations
Healthy current ratio of 3.59, reflecting strong short-term liquidity and ability to meet obligations
Low debt/equity ratio of 0.47, well below sector average of 1.12, suggesting conservative capital structure

Key Risks

Forward P/E of -228.19 indicates negative earnings expectations and potential profitability collapse
Operating margin of -13.26% and deteriorating ROE (5.34%) signal severe operational inefficiencies despite revenue growth
Absence of Altman Z-Score due to missing data raises red flags about credit risk and financial stability
Consistent earnings misses: 3 out of last 4 quarters missed estimates with an average surprise of -94.49%
Insider selling of $7.22M in the last 6 months, including CEO, signals lack of confidence from management
AI Fair Value Estimate
Based on comprehensive analysis
$33.47
-30.2% below current price

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