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

Model N, Inc.

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PC Connection, Inc.

Accolade, Inc.

PDF Solutions, Inc.

Applied Digital Corp.

Digimarc Corp.

Verint Systems, Inc.

TTEC Holdings, Inc.

Why is Applied Digital Corp. ?

Flat results in Nov 25

RAW MATERIAL COST(Y) Grown by 46.15% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 21.96 times
INTEREST(Q) Highest at USD 11.48 MM

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 269.90%, its profits have fallen by -82.6%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -0.69% over the previous quarter and currently hold 2.78% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

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.

285.57%

4.18

126.40%

S&P 500

16.12%

0.77

19.29%

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

84.87%

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

5.07

EV to EBIT

-112.36

EV to EBITDA

-214.90

EV to Capital Employed

4.10

EV to Sales

29.73

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

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

19What is working for the Company

ROCE(HY)

Highest at -11.4%

DEBT-EQUITY RATIO (HY)

Lowest at 31.52 %

NET SALES(Q)

Highest at USD 126.59 MM

EPS(Q)

Highest at USD -0.07

-25What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 46.15% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.96 times

INTEREST(Q)

Highest at USD 11.48 MM

PRE-TAX PROFIT(Q)

Lowest at USD -28.21 MM

NET PROFIT(Q)

Lowest at USD -31.29 MM

Here's what is working for Applied Digital Corp.

Net Sales

At USD 126.59 MM has Grown at 250.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (USD MM)

Net Sales

Highest at USD 126.59 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD -0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 31.52 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

At USD 8.59 MM has Grown at 106.79%

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 -28.21 MM has Fallen at -354.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -31.29 MM has Fallen at -404.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 11.48 MM has Grown at 191.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 11.48 MM

in the last five periods and Increased by 191.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD -28.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -31.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 21.96 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 46.15% (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