Applied Digital Corporation (APLD) Fundamental Analysis: Bull vs. Bear Case

APLD

Applied Digital Corporation

Fundamental data last updated:September 5, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Technology

industry

Information Technology Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing (HPC) and artificial intelligence industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

VALUATION

P/E

-67.95

Market Cap ($M USD)

$13.31B

Forward P/E

125.92 PEG

0.82 PRICE TO SALES

37.46 PRICE TO BOOK

8.00 EV / EBITDA

-365.45

5-Year Average P/E

Free Cash Flow Yield

-13.60%

DCF Value

$-21.01

Graham Number

N/A

Price to FCF

-7.35

EV to FCF

-7.96

Earnings Yield

-1.47%

FCF Yield

-13.60%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

-3.28%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.69

Next Year EPS Growth Estimate

$0.37

Next Year Revenue Growth Estimate

$4.73B

Return on Equity (ROE)

-15.82%

FREE CASH FLOW

Operating Margin

-24.99%

Debt-to-Equity

1.11 Piotroski F-Score

3 Altman Z-Score

2.26 Return on Invested Capital (ROIC)

-1.70%

Current Ratio

2.38 Quick Ratio

2.38 Net Debt to EBITDA

-27.82

Interest Coverage

-2.87

Gross Profit margin

27.07%

FCF PER SHARE

$-6.67

REVENUE PER SHARE

$1.31

Gainseekers Quantitative Analysis

Summary

The market’s current valuation of APLD Applied Digital Corporation seems to be a tale of extremes. With a Forward P/E of 111.49, the stock is priced for explosive growth, yet its negative DCF Value suggests a stark disconnect. The Altman Z-score of 2.08 indicates moderate financial distress, while the negative Earnings Yield underscores a lack of immediate profitability. Despite a consensus “Buy” rating, the company’s fundamentals raise red flags about its long-term viability and market mispricing.

AI Exposure / Tech Reliance

Positioned within the Information Technology Services industry, APLD is well-placed to capitalize on AI advancements. Its sector inherently demands adaptability to tech shifts, providing a fertile ground for innovation. However, execution remains key to leveraging these opportunities effectively.

The Bull Case

For the optimistic investor, APLD offers a tantalizing growth narrative. The Forward PEG ratio of 0.72 suggests undervaluation relative to growth expectations, while the Piotroski F-Score of 3 hints at some financial stability. Despite negative margins, the company's high sales growth potential could translate into future pricing power. The robust Current Ratio of 2.38 indicates solid short-term liquidity, providing a cushion for strategic investments.

The Bear Case

APLD's financial structure is fraught with risks. A Price/Sales ratio of 33.16 and Price/Book of 7.09 signal overvaluation, while the negative EV to EBITDA ratio highlights operational inefficiencies. The stock's proximity to its 52-week high suggests technical overextension, and its negative FCF Yield and Earnings Yield paint a bleak picture of cash flow health. These metrics collectively point to a precarious financial position that could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$63.88

Institutional Ownership %

1-Year Beta

5.70 Insider Buying % (6 Mo)

Distance to 52-Week High

8.88%

Distance to 52-Week Low

85.67%

EARNINGS SURPRISE %

-260.00%

50-DAY SMA

$33.97

200-DAY SMA

$29.08

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.