NASDAQ:APP is showing decent growth, but is still valued reasonably.

APPLOVIN CORP-CLASS A (NASDAQ:APP) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:APP is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Assessment of 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:

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

A Closer Look at Valuation for NASDAQ:APP

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:APP scores a 6 out of 10:

• Based on the Price/Earnings ratio, APP is valued a bit cheaper than the industry average as 61.31% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, APP is valued a bit cheaper than the industry average as 74.82% of the companies are valued more expensively.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a rather cheap valuation: APP is cheaper than 81.02% of the companies listed in the same industry.
• 79.93% of the companies in the same industry are more expensive than APP, based on the Price/Free Cash Flow ratio.
• 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 Analysis for 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 5.18 indicates that APP is not in any danger for bankruptcy at the moment.
• APP has a Altman-Z score of 5.18. This is in the better half of the industry: APP outperforms 67.88% 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 64.60% of the companies in the same industry.
• A Current Ratio of 2.11 indicates that APP has no problem at all paying its short term obligations.
• APP's Current ratio of 2.11 is fine compared to the rest of the industry. APP outperforms 64.23% 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's Quick ratio of 2.11 is fine compared to the rest of the industry. APP outperforms 65.33% of its industry peers.

Profitability Insights: NASDAQ:APP

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:APP was assigned a score of 6 for profitability:

• APP has a better Return On Assets (11.29%) than 90.15% of its industry peers.
• With an excellent Return On Equity value of 78.16%, APP belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
• 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.
• Looking at the Profit Margin, with a value of 16.39%, APP belongs to the top of the industry, outperforming 85.04% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 26.32%, APP belongs to the top of the industry, outperforming 94.89% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of APP

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.