Applied Digital Corp.

Finance
Finance: Consumer Services
www.applieddigital.com

Moat Score
Safety Score

Market Cap $1.39B
PE -10
Debt $6.89M
Cash $86.56M
EV $1.31B
FCF -$187.56M

Earnings

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Sales & Net Margins

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Earnings	-$142.11M
EBIT	-$84.41M
ROE	-59%
ROA	-9%
FCF	-$187.56M
Equity	$241.85M
Growth Stability	1
PE	-9.77
PB	5.74
P/FCF	-7.4
P/S	7.31
Price/Cash	0.06
Debt/Equity	0.03
Debt/FCF	-0.04
Net Margins	-7%
Gross Margins	3%
Op. Margins	-44%
Sales Growth YoY	67%
Sales Growth QoQ	39%
Sales CAGR	435%
Equity CAGR	48%
Earnings Growth YoY	-64%

Earnings Growth QoQ	-93%
Sales CAGR 5Y	435%
Equity CAGR 5Y	48%
Earnings CAGR 3Y	477%
Sales CAGR 3Y	477%
Equity CAGR 3Y	58%
Market Cap	$1.39B
Revenue	$189.96M
Assets	$937.73M
Total Debt	$6.89M
Cash	$86.56M
Shares Outstanding	149.01M
EV	1.31B
Moat Score	5%
Safety Score	65%
Working Capital	-302.56M
Current Ratio	0.22
Gross Profit	$4.95M
Shares Growth 3y	14%
Equity Growth QoQ	94%
Equity Growth YoY	89%

Assets & ROA

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Stockholders Equity & ROE

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Applied Digital Corp designs, develops and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high performance computing industry.

SEC Filings

Direct access to Applied Digital Corp. (APLD) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 29
2023
- 10-Q Nov 30
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 28
2022
- 10-Q Nov 30
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 28

Sector Comparison

How does Applied Digital Corp. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Applied Digital Corp. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Applied Digital Corp. Discounted Cash Flow

Fully customizable DCF calculator online for Applied Digital Corp..

Years

Calculation mode

= -$1.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$188M	-$188M	-$188M	-$188M	-$188M	-$188M	-$188M	-$188M	-$188M	-$188M	-$188M	-$1.9B
DCF		-$171M	-$155M	-$141M	-$128M	-$116M	-$106M	-$96M	-$87M	-$80M	-$72M	-$723M
Value	-$1.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	-	-275%	-82%	-90%	-7%
ROA	-	-17%	-17%	-13%	-9%
ROE	-	-30%	-65%	-120%	-59%

Bad Net Margins (-7.07%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	-0.17	-0.11	-0.08	-0.04
Debt over Equity	-0	0.11	0.11	0.08	0.03
Growth Stability	-	-	-	-	1

Good Debt/FCF ratio (-0.04)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.03)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2021	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	-	548%	199%	435%
Earnings YoY growth	-	4K%	94%	228%	-
Equity YoY growth	-	-3K%	-12%	79%	48%
FCF YoY growth	-	47K%	43%	83%	-