Despite its growth, NASDAQ:APP remains within the realm of affordability.

Last update: Aug 27, 2024

Uncover the potential of APPLOVIN CORP-CLASS A (NASDAQ:APP), a growth stock that our stock screener found to be reasonably priced. NASDAQ:APP is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

What does the Growth looks like for NASDAQ:APP

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 3816.67%, which is quite impressive.
Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 37.31%.
The Revenue has been growing by 46.69% on average over the past years. This is a very strong growth!
Based on estimates for the next years, APP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.41% on average per year.
Based on estimates for the next years, APP will show a quite strong growth in Revenue. The Revenue will grow by 14.27% on average per year.

Valuation Analysis for NASDAQ:APP

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:

Based on the Price/Earnings ratio, APP is valued a bit cheaper than the industry average as 67.25% of the companies are valued more expensively.
77.11% 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 cheaply inside the industry as 82.39% of the companies are valued more expensively.
APP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APP is cheaper than 84.51% of the companies 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.
The decent profitability rating of APP may justify a higher PE ratio.
A more expensive valuation may be justified as APP's earnings are expected to grow with 72.00% in the coming years.

Assessing 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 5.64. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.64, APP is in the better half of the industry, outperforming 70.07% of the companies in the same industry.
APP has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as APP would need 2.52 years to pay back of all of its debts.
The Debt to FCF ratio of APP (2.52) is better than 66.20% of its industry peers.
A Current Ratio of 2.28 indicates that APP has no problem at all paying its short term obligations.
APP has a Current ratio of 2.28. This is in the better half of the industry: APP outperforms 65.14% of its industry peers.
APP has a Quick Ratio of 2.28. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
APP has a Quick ratio of 2.28. This is in the better half of the industry: APP outperforms 66.55% of its industry peers.

Evaluating Profitability: 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:

With an excellent Return On Assets value of 15.63%, APP belongs to the best of the industry, outperforming 93.66% of the companies in the same industry.
APP has a better Return On Equity (101.08%) than 98.94% of its industry peers.
With an excellent Return On Invested Capital value of 21.13%, APP belongs to the best of the industry, outperforming 96.13% of the companies in the same industry.
The 3 year average ROIC (4.97%) for APP is below the current ROIC(21.13%), indicating increased profibility in the last year.
APP has a better Profit Margin (20.82%) than 89.44% of its industry peers.
Looking at the Operating Margin, with a value of 30.69%, APP belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.

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

Our latest full fundamental report of APP contains the most current fundamental analsysis.

Disclaimer

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.