APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis
USA - NASDAQ:APP - US03831W1080 - Common Stock
593.14 USD
+11.14 (+1.91%)
593.99 USD
+0.85 (+0.14%)
Taking everything into account, APP scores 7 out of 10 in our fundamental rating. APP was compared to 280 industry peers in the Software industry. APP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. APP is growing strongly while it is still valued neutral. This is a good combination! These ratings would make APP suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
APP had positive earnings in the past year.
APP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: APP reported negative net income in multiple years.
APP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APP has a better Return On Assets (40.75%) than 98.93% of its industry peers.
APP's Return On Equity of 208.08% is amongst the best of the industry. APP outperforms 100.00% of its industry peers.
APP has a Return On Invested Capital of 47.95%. This is amongst the best in the industry. APP outperforms 98.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APP is above the industry average of 11.85%.
The 3 year average ROIC (14.51%) for APP is below the current ROIC(47.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 40.75% | ||
| ROE | 208.08% | ||
| ROIC | 47.95% |
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
Looking at the Profit Margin, with a value of 45.70%, APP belongs to the top of the industry, outperforming 93.93% of the companies in the same industry.
APP's Profit Margin has improved in the last couple of years.
APP's Operating Margin of 55.57% is amongst the best of the industry. APP outperforms 97.50% of its industry peers.
APP's Operating Margin has improved in the last couple of years.
APP has a Gross Margin of 80.87%. This is amongst the best in the industry. APP outperforms 82.86% of its industry peers.
In the last couple of years the Gross Margin of APP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.57% | ||
| PM (TTM) | 45.7% | ||
| GM | 80.87% |
OM growth 3Y94.94%
OM growth 5Y15.26%
PM growth 3Y209.01%
PM growth 5Y34.23%
GM growth 3Y5.19%
GM growth 5Y-0.13%
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.
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 27.73 indicates that APP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 27.73, APP belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
APP has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.21, APP is in the better half of the industry, outperforming 73.57% of the companies in the same industry.
APP has a Debt/Equity ratio of 3.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.01, APP is doing worse than 82.86% of the companies in the same industry.
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 | 3.01 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 27.73 |
ROIC/WACC4.35
WACC11.01%
2.3 Liquidity
APP has a Current Ratio of 2.74. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
APP's Current ratio of 2.74 is fine compared to the rest of the industry. APP outperforms 75.71% of its industry peers.
A Quick Ratio of 2.74 indicates that APP has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.74, APP is doing good in the industry, outperforming 76.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.98%, 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 84.87% on average per year.
Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 34.33%.
APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.49% yearly.
EPS 1Y (TTM)222.98%
EPS 3Y269.34%
EPS 5Y84.87%
EPS Q2Q%168.54%
Revenue 1Y (TTM)34.33%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%16.54%
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 31.97% on average per year.
Based on estimates for the next years, APP will show a very strong growth in Revenue. The Revenue will grow by 23.97% on average per year.
EPS Next Y92.88%
EPS Next 2Y72.21%
EPS Next 3Y54.04%
EPS Next 5Y31.97%
Revenue Next Year21.4%
Revenue Next 2Y25.77%
Revenue Next 3Y25.22%
Revenue Next 5Y23.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 78.15 indicates a quite expensive valuation of APP.
Compared to the rest of the industry, the Price/Earnings ratio of APP is on the same level as its industry peers.
APP is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
APP is valuated quite expensively with a Price/Forward Earnings ratio of 44.06.
APP's Price/Forward Earnings is on the same level as the industry average.
APP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.15 | ||
| Fwd PE | 44.06 |
4.2 Price Multiples
APP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APP is cheaper than 60.71% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as APP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.3 | ||
| EV/EBITDA | 60.22 |
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.
A more expensive valuation may be justified as APP's earnings are expected to grow with 54.04% in the coming years.
PEG (NY)0.84
PEG (5Y)0.92
EPS Next 2Y72.21%
EPS Next 3Y54.04%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
593.14
+11.14 (+1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.15%
Inst Owner Change-7.53%
Ins Owners4.87%
Ins Owner Change-0.52%
Market Cap200.63B
Analysts81.33
Price Target524 (-11.66%)
Short Float %4.88%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.04%
Min EPS beat(2)16.63%
Max EPS beat(2)51.45%
EPS beat(4)4
Avg EPS beat(4)35.03%
Min EPS beat(4)16.63%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)27.58%
EPS beat(12)9
Avg EPS beat(12)-18.56%
EPS beat(16)9
Avg EPS beat(16)-67.65%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)6.23%
Revenue beat(4)3
Avg Revenue beat(4)4.19%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)7.5%
Revenue beat(8)6
Avg Revenue beat(8)4.01%
Revenue beat(12)9
Avg Revenue beat(12)2.88%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)6.75%
PT rev (3m)8.79%
EPS NQ rev (1m)6.39%
EPS NQ rev (3m)9.87%
EPS NY rev (1m)7.07%
EPS NY rev (3m)25.17%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.15 | ||
| Fwd PE | 44.06 | ||
| P/S | 37.76 | ||
| P/FCF | 69.3 | ||
| P/OCF | 69.18 | ||
| P/B | 171.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.22 |
EPS(TTM)7.59
EY1.28%
EPS(NY)13.46
Fwd EY2.27%
FCF(TTM)8.56
FCFY1.44%
OCF(TTM)8.57
OCFY1.45%
SpS15.71
BVpS3.45
TBVpS-2.43
PEG (NY)0.84
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 40.75% | ||
| ROE | 208.08% | ||
| ROCE | 60.69% | ||
| ROIC | 47.95% | ||
| ROICexc | 63.51% | ||
| ROICexgc | 138.41% | ||
| OM | 55.57% | ||
| PM (TTM) | 45.7% | ||
| GM | 80.87% | ||
| FCFM | 54.49% |
ROA(3y)10.07%
ROA(5y)4.98%
ROE(3y)54.28%
ROE(5y)N/A
ROIC(3y)14.51%
ROIC(5y)9.34%
ROICexc(3y)16.97%
ROICexc(5y)11.03%
ROICexgc(3y)60.6%
ROICexgc(5y)N/A
ROCE(3y)18.38%
ROCE(5y)11.84%
ROICexcg growth 3Y130.56%
ROICexcg growth 5YN/A
ROICexc growth 3Y131.06%
ROICexc growth 5Y6.08%
OM growth 3Y94.94%
OM growth 5Y15.26%
PM growth 3Y209.01%
PM growth 5Y34.23%
GM growth 3Y5.19%
GM growth 5Y-0.13%
F-Score9
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.01 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 13.11 | ||
| Cash Conversion | 87.68% | ||
| Profit Quality | 119.22% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 27.73 |
F-Score9
WACC11.01%
ROIC/WACC4.35
Cap/Depr(3y)1.05%
Cap/Depr(5y)1.13%
Cap/Sales(3y)0.16%
Cap/Sales(5y)0.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)222.98%
EPS 3Y269.34%
EPS 5Y84.87%
EPS Q2Q%168.54%
EPS Next Y92.88%
EPS Next 2Y72.21%
EPS Next 3Y54.04%
EPS Next 5Y31.97%
Revenue 1Y (TTM)34.33%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%16.54%
Revenue Next Year21.4%
Revenue Next 2Y25.77%
Revenue Next 3Y25.22%
Revenue Next 5Y23.97%
EBIT growth 1Y148.91%
EBIT growth 3Y132.02%
EBIT growth 5Y57.32%
EBIT Next Year127.57%
EBIT Next 3Y54.45%
EBIT Next 5Y40.96%
FCF growth 1Y242.92%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y238.73%
OCF growth 3Y79.67%
OCF growth 5Y60.27%