Taking everything into account, APP scores 7 out of 10 in our fundamental rating. APP was compared to 277 industry peers in the Software industry. APP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. APP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes APP very considerable for growth and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year APP was profitable.
APP had a positive operating cash flow in the past year.
In multiple years APP reported negative net income over the last 5 years.
Each year in the past 5 years APP had a positive operating cash flow.

1.2 Ratios

The Return On Assets of APP (44.61%) is better than 99.28% of its industry peers.
The Return On Equity of APP (191.99%) is better than 99.64% of its industry peers.
APP's Return On Invested Capital of 52.42% is amongst the best of the industry. APP outperforms 98.92% of its industry peers.
APP had an Average Return On Invested Capital over the past 3 years of 14.51%. This is above the industry average of 10.78%.
The last Return On Invested Capital (52.42%) for APP is above the 3 year average (14.51%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	44.61%
ROE	191.99%
ROIC	52.42%

ROA(3y)10.07%

ROA(5y)4.98%

ROE(3y)54.28%

ROE(5y)N/A

ROIC(3y)14.51%

ROIC(5y)9.34%

1.3 Margins

With an excellent Profit Margin value of 51.26%, APP belongs to the best of the industry, outperforming 93.50% of the companies in the same industry.
In the last couple of years the Profit Margin of APP has grown nicely.
Looking at the Operating Margin, with a value of 63.35%, APP belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
In the last couple of years the Operating Margin of APP has grown nicely.
APP's Gross Margin of 83.31% is amongst the best of the industry. APP outperforms 88.81% of its industry peers.
APP's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	63.35%
PM (TTM)	51.26%
GM	83.31%

OM growth 3Y94.93%

OM growth 5Y15.27%

PM growth 3Y209%

PM growth 5Y34.24%

GM growth 3Y5.19%

GM growth 5Y-0.13%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APP is creating value.
APP has about the same amout of shares outstanding than it did 1 year ago.
APP has less shares outstanding than it did 5 years ago.
APP has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 25.11 indicates that APP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 25.11, APP belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
The Debt to FCF ratio of APP is 1.03, which is an excellent value as it means it would take APP, only 1.03 years of fcf income to pay off all of its debts.
APP has a Debt to FCF ratio of 1.03. This is in the better half of the industry: APP outperforms 74.73% of its industry peers.
A Debt/Equity ratio of 2.38 is on the high side and indicates that APP has dependencies on debt financing.
APP has a worse Debt to Equity ratio (2.38) than 83.39% of its industry peers.
Although APP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	2.38
Debt/FCF	1.03
Altman-Z	25.11

ROIC/WACC4.71

WACC11.13%

2.3 Liquidity

A Current Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.25, APP is in the better half of the industry, outperforming 76.90% of the companies in the same industry.
A Quick Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
APP has a Quick ratio of 3.25. This is in the better half of the industry: APP outperforms 76.90% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.25
Quick Ratio	3.25

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 166.36%, which is quite impressive.
Measured over the past years, APP shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.83% on average per year.
The Revenue has grown by 40.81% 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 36.49% on average per year.

EPS 1Y (TTM)166.36%

EPS 3Y269.22%

EPS 5Y84.83%

EPS Q2Q%96%

Revenue 1Y (TTM)40.81%

Revenue growth 3Y19.02%

Revenue growth 5Y36.49%

Sales Q2Q%17.26%

3.2 Future

Based on estimates for the next years, APP will show a very strong growth in Earnings Per Share. The EPS will grow by 44.45% on average per year.
The Revenue is expected to grow by 27.22% on average over the next years. This is a very strong growth

EPS Next Y107.54%

EPS Next 2Y80.26%

EPS Next 3Y62.05%

EPS Next 5Y44.45%

Revenue Next Year24.01%

Revenue Next 2Y30.38%

Revenue Next 3Y29.2%

Revenue Next 5Y27.22%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 59.66 indicates a quite expensive valuation of APP.
APP's Price/Earnings is on the same level as the industry average.
APP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 35.55, the valuation of APP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as APP.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, APP is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	59.66
Fwd PE	35.55

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, APP is valued a bit cheaper than the industry average as 61.37% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as APP.

		Industry Rank	Sector Rank
P/FCF	52.16
EV/EBITDA	47.07

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
APP has an outstanding profitability rating, which may justify a higher PE ratio.
APP's earnings are expected to grow with 62.05% in the coming years. This may justify a more expensive valuation.