Applied Digital Operating Margin vs. Market Capitalization
| APLD Stock | USD 9.11 1.31 16.79% |
Applied Digital Operating Profit Margin |
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For Applied Digital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Applied Digital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Applied Digital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Applied Digital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Applied Digital over time as well as its relative position and ranking within its peers.
Applied |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Applied Digital. If investors know Applied will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Applied Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.23) | Revenue Per Share | Quarterly Revenue Growth 0.671 | Return On Assets | Return On Equity |
The market value of Applied Digital is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Digital's value that differs from its market value or its book value, called intrinsic value, which is Applied Digital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Applied Digital's market value can be influenced by many factors that don't directly affect Applied Digital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Applied Digital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Digital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Applied Digital Market Capitalization vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Applied Digital's current stock value. Our valuation model uses many indicators to compare Applied Digital value to that of its competitors to determine the firm's financial worth. Applied Digital is rated second in operating margin category among its peers. It is rated fifth in market capitalization category among its peers . At present, Applied Digital's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Applied Digital by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Applied Market Capitalization vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Applied Digital |
| = | (0.24) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Applied Digital |
| = | 1.92 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Applied Market Capitalization vs Competition
Applied Digital is rated fifth in market capitalization category among its peers. Market capitalization of Information Technology industry is presently estimated at about 24.42 Billion. Applied Digital holds roughly 1.92 Billion in market capitalization claiming about 8% of equities under Information Technology industry.
Applied Digital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Applied Digital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Applied Digital will eventually generate negative long term returns. The profitability progress is the general direction of Applied Digital's change in net profit over the period of time. It can combine multiple indicators of Applied Digital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | -89.1 M | -84.7 M | |
| Income Before Tax | -134.6 M | -127.9 M | |
| Total Other Income Expense Net | -45.5 M | -43.2 M | |
| Net Loss | -134.3 M | -127.6 M | |
| Income Tax Expense | 86.4 K | 90.7 K | |
| Net Loss | -134.7 M | -128 M | |
| Net Loss | -40.2 M | -38.2 M | |
| Net Interest Income | -24.1 M | -22.9 M | |
| Non Operating Income Net Other | -108.1 K | -113.5 K | |
| Change To Netincome | 36.8 M | 38.7 M | |
| Net Loss | (0.02) | (0.02) | |
| Income Quality | 0.46 | 0.45 | |
| Net Loss | (0.02) | (0.02) |
Applied Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Applied Digital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Applied Digital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Applied Digital's important profitability drivers and their relationship over time.
Use Applied Digital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Applied Digital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Applied Digital will appreciate offsetting losses from the drop in the long position's value.Applied Digital Pair Trading
Applied Digital Pair Trading Analysis
The ability to find closely correlated positions to Applied Digital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied Digital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Applied Digital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Applied Digital to buy it.
The correlation of Applied Digital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Applied Digital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied Digital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Applied Digital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Applied Digital position
In addition to having Applied Digital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Applied Digital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Applied Digital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Applied Digital's income statement, its balance sheet, and the statement of cash flows.