Applied Digital Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PC Connection, Inc.

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Applied Digital Corp.

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Verint Systems, Inc.

Why is Applied Digital Corp. ?

Flat results in May 26

INTEREST(Q) At USD 10.63 MM has Grown at inf%
NET PROFIT(Q) Lowest at USD -157.06 MM
RAW MATERIAL COST(Y) Grown by 24.55% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 105.20%, its profits have fallen by -82.6%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Applied Digital Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Applied Digital Corp.

105.2%

5.76

105.38%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

79.10%

EBIT Growth (5y)

-255.66%

EBIT to Interest (avg)

-9.51

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.21

Sales to Capital Employed (avg)

0.28

Tax Ratio

0.09%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

90.41%

ROCE (avg)

179.45%

ROE (avg)

165.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.35

EV to EBIT

-97.28

EV to EBITDA

-186.06

EV to Capital Employed

3.55

EV to Sales

25.74

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.65%

ROE (Latest)

-6.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 89.69 MM

NET SALES(Q)

Highest at USD 258.75 MM

RAW MATERIAL COST(Y)

Fallen by -306.19% (YoY

-23What is not working for the Company

INTEREST(Q)

At USD 10.63 MM has Grown at inf%

NET PROFIT(Q)

Lowest at USD -157.06 MM

RAW MATERIAL COST(Y)

Grown by 24.55% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.77 times

OPERATING PROFIT(Q)

Lowest at USD -80.82 MM

PRE-TAX PROFIT(Q)

Lowest at USD -127.68 MM

EPS(Q)

Lowest at USD -0.39

Here's what is working for Applied Digital Corp.

Net Sales

At USD 258.75 MM has Grown at 580.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (USD MM)

Net Sales

Highest at USD 258.75 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 89.69 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -306.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 36.22 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 36.22 MM has Grown at 74.04%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Applied Digital Corp.

Pre-Tax Profit

At USD -127.68 MM has Fallen at -414.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -157.06 MM has Fallen at -533.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 10.63 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD -157.06 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD -80.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD -127.68 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -0.39

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 9.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 24.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales