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The historical data trend for Applied Digital's OCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Applied Digital's OCF Margin %, along with its competitors' market caps and OCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Digital OCF Margin % vs Software Industry
For the Software industry and Technology sector, Applied Digital's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Applied Digital's OCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Digital (APLD) has a OCF Margin % of 51.23% as of May. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #829 out of 2823 companies in the Software industry, placing it in the top 29.4%.
Is Applied Digital's OCF Margin % too high?
Applied Digital's current OCF Margin % is 51.23%. The Software industry median OCF Margin % is 6.67. Applied Digital's value of 51.23% is 668.1% above this industry median. Based on the distribution chart, Applied Digital ranks #829 out of 2823 companies in the Software industry, which is above the industry midpoint. Overall, Applied Digital has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's OCF Margin % compare to INGM and GDS?
According to the Software industry distribution chart, Applied Digital ranks #829 out of 2823 companies for OCF Margin %. This puts Applied Digital in the upper half of its industry. The industry median OCF Margin % is 6.67. Applied Digital's value of 51.23% is 668.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.67, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Digital's current OCF Margin % of 51.23% is 668.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Applied Digital and its competitors. For the Software industry, the median OCF Margin % is 6.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current OCF Margin % is 51.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Based on GuruFocus' analysis, Applied Digital (APLD) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.42, compared to a current price of $31.27 — trading 53.1% above its estimated fair value. The current OCF Margin % is 51.23% and 668.1% above the Software industry median of 6.67. Applied Digital's overall GF Score™ is 48/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Applied Digital (APLD), the current OCF Margin % is 51.23% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Digital (APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of $31.27 is trading 53.1% above its estimated GF Value™ of $20.42.
GuruFocus considers Applied Digital to be Significantly Overvalued.
Key valuation signals for APLD:
OCF Margin %: 51.23%
GF Value™: $20.42 vs. price of $31.27 (53.1% above fair value)
Industry Position: 668.1% above the Software median (#829 of 2823)
No single metric tells the full story. See the APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
48GF Score
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OCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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