Don't overlook NASDAQ:APP—a stock with solid growth prospects and a reasonable valuation.

Consider APPLOVIN CORP-CLASS A (NASDAQ:APP) as an affordable growth stock, identified by our stock screening tool. NASDAQ:APP is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Assessing Growth for NASDAQ:APP

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:APP scores a 7 out of 10:

• The Earnings Per Share has grown by an impressive 3816.67% over the past year.
• 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!
• APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.41% yearly.
• 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.

Assessing Valuation 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 5 for valuation:

• Based on the Price/Forward Earnings ratio, APP is valued a bit cheaper than 61.57% of the companies in the same industry.
• 71.89% of the companies in the same industry are more expensive than APP, based on the Enterprise Value to EBITDA ratio.
• APP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APP is cheaper than 66.55% of the companies in the same industry.
• The 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 80.91% in the coming years.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:APP has earned a 7 out of 10:

• APP has an Altman-Z score of 9.01. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
• APP's Altman-Z score of 9.01 is fine compared to the rest of the industry. APP outperforms 79.36% of its industry peers.
• The Debt to FCF ratio of APP is 2.52, which is a good value as it means it would take APP, 2.52 years of fcf income to pay off all of its debts.
• APP has a better Debt to FCF ratio (2.52) than 66.19% of its industry peers.
• APP has a Current Ratio of 2.28. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• APP's Current ratio of 2.28 is fine compared to the rest of the industry. APP outperforms 64.77% of its industry peers.
• A Quick Ratio of 2.28 indicates that APP has no problem at all paying its short term obligations.
• The Quick ratio of APP (2.28) is better than 66.55% of its industry peers.

Profitability Assessment of 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:

• Looking at the Return On Assets, with a value of 15.63%, APP belongs to the top of the industry, outperforming 92.88% of the companies in the same industry.
• APP has a Return On Equity of 101.08%. This is amongst the best in the industry. APP outperforms 98.93% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 21.13%, APP belongs to the top of the industry, outperforming 95.37% 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.
• Looking at the Profit Margin, with a value of 20.82%, APP belongs to the top of the industry, outperforming 87.90% of the companies in the same industry.
• APP's Operating Margin of 30.69% is amongst the best of the industry. APP outperforms 96.44% of its industry peers.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.