Investors seeking growth at a reasonable cost should explore NASDAQ:APP.

Discover APPLOVIN CORP-CLASS A (NASDAQ:APP), an undervalued growth gem identified by our stock screener. NASDAQ:APP is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

What does the Growth looks like for NASDAQ:APP

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:APP has earned a 7 for growth:

• The Earnings Per Share has grown by an impressive 863.64% over the past year.
• Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 24.73%.
• The Revenue has been growing by 46.69% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 32.41% on average over the next years. This is a very strong growth
• APP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.27% yearly.

Exploring NASDAQ:APP's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:APP has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, APP is valued a bit cheaper than 61.68% of the companies in the same industry.
• APP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APP is cheaper than 76.64% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a rather cheap valuation: APP is cheaper than 82.85% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, APP is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
• APP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• APP has a very decent profitability rating, which may justify a higher PE ratio.
• APP's earnings are expected to grow with 67.80% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:APP

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:APP scores a 7 out of 10:

• An Altman-Z score of 4.77 indicates that APP is not in any danger for bankruptcy at the moment.
• APP's Altman-Z score of 4.77 is fine compared to the rest of the industry. APP outperforms 69.34% of its industry peers.
• The Debt to FCF ratio of APP is 3.03, which is a good value as it means it would take APP, 3.03 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 3.03, APP is doing good in the industry, outperforming 63.50% of the companies in the same industry.
• APP has a Current Ratio of 2.11. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• APP has a better Current ratio (2.11) than 63.50% of its industry peers.
• APP has a Quick Ratio of 2.11. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• APP has a Quick ratio of 2.11. This is in the better half of the industry: APP outperforms 64.60% of its industry peers.

Profitability Assessment of NASDAQ:APP

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:APP has achieved a 6:

• The Return On Assets of APP (11.29%) is better than 90.15% of its industry peers.
• APP's Return On Equity of 78.16% is amongst the best of the industry. APP outperforms 98.91% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 16.75%, APP belongs to the top of the industry, outperforming 94.16% of the companies in the same industry.
• The 3 year average ROIC (4.97%) for APP is below the current ROIC(16.75%), indicating increased profibility in the last year.
• The Profit Margin of APP (16.39%) is better than 85.04% of its industry peers.
• APP has a better Operating Margin (26.32%) than 94.89% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of APP for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.