NASDAQ:APP stands out as a growth opportunity that won't break the bank.

Last update: Aug 6, 2024

APPLOVIN CORP-CLASS A (NASDAQ:APP) was identified as an affordable growth stock by our stock screener. NASDAQ:APP is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Exploring NASDAQ:APP's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:APP boasts a 7 out of 10:

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.
APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.73%.
APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 46.69% yearly.
The Earnings Per Share is expected to grow by 32.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.27% on average over the next years. This is quite good.

Understanding NASDAQ:APP's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:APP has earned a 6 for valuation:

APP's Price/Earnings ratio is a bit cheaper when compared to the industry. APP is cheaper than 63.96% of the companies in the same industry.
81.98% of the companies in the same industry are more expensive than APP, based on the Price/Forward Earnings ratio.
Based on the Enterprise Value to EBITDA ratio, APP is valued cheaper than 85.16% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APP indicates a rather cheap valuation: APP is cheaper than 84.45% of the companies listed in the same industry.
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.
A more expensive valuation may be justified as APP's earnings are expected to grow with 68.43% in the coming years.

A Closer Look at Health for NASDAQ:APP

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:APP has achieved a 7 out of 10:

APP has an Altman-Z score of 4.27. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of APP (4.27) is better than 65.72% 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.
APP's Debt to FCF ratio of 3.03 is fine compared to the rest of the industry. APP outperforms 65.02% of its industry peers.
A Current Ratio of 2.11 indicates that APP has no problem at all paying its short term obligations.
APP has a better Current ratio (2.11) than 64.66% of its industry peers.
A Quick Ratio of 2.11 indicates that APP has no problem at all paying its short term obligations.
The Quick ratio of APP (2.11) is better than 65.37% of its industry peers.

A Closer Look at Profitability for NASDAQ:APP

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:APP has earned a 6 out of 10:

The Return On Assets of APP (11.29%) is better than 90.81% of its industry peers.
APP has a Return On Equity of 78.16%. This is amongst the best in the industry. APP outperforms 98.94% of its industry peers.
APP has a better Return On Invested Capital (16.75%) than 93.99% of its industry peers.
The 3 year average ROIC (4.97%) for APP is below the current ROIC(16.75%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 16.39%, APP belongs to the best of the industry, outperforming 85.16% of the companies in the same industry.
APP's Operating Margin of 26.32% is amongst the best of the industry. APP outperforms 95.05% of its industry peers.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.