524.41 USD
+2.47 (+0.47%)
521 USD
-3.41 (-0.65%)
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. APP gets an excellent profitability rating and is at the same time showing great financial health properties. APP is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make APP a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year APP was profitable.
- In the past year APP had a positive cash flow from operations.
- In multiple years APP reported negative net income over the last 5 years.
- In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 44.61%, APP belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
- APP has a better Return On Equity (191.99%) than 99.64% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 52.42%, APP belongs to the top of the industry, outperforming 98.92% of the companies in the same industry.
- 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
- APP's Profit Margin of 51.26% is amongst the best of the industry. APP outperforms 93.50% of its industry peers.
- In the last couple of years the Profit Margin of APP has grown nicely.
- APP's Operating Margin of 63.35% is amongst the best of the industry. APP outperforms 97.83% of its industry peers.
- APP's Operating Margin has improved in the last couple of years.
- The Gross Margin of APP (83.31%) is better than 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APP is creating value.
- The number of shares outstanding for APP remains at a similar level compared to 1 year ago.
- The number of shares outstanding for APP has been reduced compared to 5 years ago.
- APP has a better debt/assets ratio than last year.
2.2 Solvency
- APP has an Altman-Z score of 25.11. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
- APP has a better Altman-Z score (25.11) than 96.75% of its industry peers.
- 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's Debt to FCF ratio of 1.03 is fine compared to the rest 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/WACC4.72
WACC11.11%
2.3 Liquidity
- APP has a Current Ratio of 3.25. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
- APP has a Current ratio of 3.25. This is in the better half of the industry: APP outperforms 76.90% of its industry peers.
- A Quick Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 3.25, APP is doing good in the industry, outperforming 76.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 |
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.
- The Earnings Per Share has been growing by 84.83% on average over the past years. This is a very strong growth
- APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.81%.
- The Revenue has been growing by 36.49% on average over the past years. This is a very strong growth!
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- APP is valuated quite expensively with a Price/Earnings ratio of 59.66.
- APP's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, APP is valued quite expensively.
- With a Price/Forward Earnings ratio of 35.55, APP can be considered very expensive at the moment.
- APP's Price/Forward Earnings is on the same level as the industry average.
- 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
- APP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APP is cheaper than 61.37% of the companies in the same industry.
- APP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.16 | ||
| EV/EBITDA | 47.07 |
4.3 Compensation for Growth
- APP's 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.
PEG (NY)0.55
PEG (5Y)0.7
EPS Next 2Y80.26%
EPS Next 3Y62.05%
5. Dividend
5.1 Amount
- No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
APPLOVIN CORP-CLASS A / APP FAQ
Can you provide the ChartMill fundamental rating for APPLOVIN CORP-CLASS A?
ChartMill assigns a fundamental rating of 7 / 10 to APP.
What is the valuation status of APPLOVIN CORP-CLASS A (APP) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLOVIN CORP-CLASS A (APP). This can be considered as Fairly Valued.
How profitable is APPLOVIN CORP-CLASS A (APP) stock?
APPLOVIN CORP-CLASS A (APP) has a profitability rating of 9 / 10.
Can you provide the financial health for APP stock?
The financial health rating of APPLOVIN CORP-CLASS A (APP) is 8 / 10.
What is the earnings growth outlook for APPLOVIN CORP-CLASS A?
The Earnings per Share (EPS) of APPLOVIN CORP-CLASS A (APP) is expected to grow by 107.54% in the next year.