721.37 USD
+27 (+3.89%)
725 USD
+3.63 (+0.5%)
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 278 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 not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
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
Looking at the Return On Assets, with a value of 44.61%, APP belongs to the top of the industry, outperforming 98.93% of the companies in the same industry.
The Return On Equity of APP (191.99%) is better 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 98.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for APP is above the industry average of 10.78%.
The 3 year average ROIC (14.51%) for APP is below the current ROIC(52.42%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 51.26%, APP belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
APP's Profit Margin has improved in the last couple of years.
APP has a Operating Margin of 63.35%. This is amongst the best in the industry. APP outperforms 97.86% of its industry peers.
APP's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.31%, APP belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
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 | 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
APP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for APP remains at a similar level compared to 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 33.42 indicates that APP is not in any danger for bankruptcy at the moment.
APP's Altman-Z score of 33.42 is amongst the best of the industry. APP outperforms 96.44% 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 has a better Debt to FCF ratio (1.03) than 74.73% of its industry peers.
APP has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
APP's Debt to Equity ratio of 2.38 is on the low side compared to the rest of the industry. APP is outperformed by 82.56% of its industry peers.
Even though the debt/equity ratio score it not favorable for APP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 33.42 |
ROIC/WACC4.81
WACC10.9%
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.
Looking at the Current ratio, with a value of 3.25, APP is in the better half of the industry, outperforming 77.58% 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 better Quick ratio (3.25) than 77.58% of its industry peers.
| 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
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 27.30% on average over the next years. This is a very strong growth
EPS Next Y108.36%
EPS Next 2Y80.25%
EPS Next 3Y62.15%
EPS Next 5Y44.45%
Revenue Next Year24.1%
Revenue Next 2Y30.15%
Revenue Next 3Y29.01%
Revenue Next 5Y27.3%
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 82.07 indicates a quite expensive valuation of APP.
APP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.39, APP is valued quite expensively.
A Price/Forward Earnings ratio of 48.90 indicates a quite expensive valuation of APP.
The rest of the industry has a similar Price/Forward Earnings ratio as APP.
APP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.07 | ||
| Fwd PE | 48.9 |
4.2 Price Multiples
APP's Enterprise Value to EBITDA ratio is in line with the industry average.
APP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.75 | ||
| EV/EBITDA | 64.86 |
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.
The excellent 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 62.15% in the coming years.
PEG (NY)0.76
PEG (5Y)0.97
EPS Next 2Y80.25%
EPS Next 3Y62.15%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
721.37
+27 (+3.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.17%
Inst Owner Change22.25%
Ins Owners4.66%
Ins Owner Change-0.4%
Market Cap243.79B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target735.09 (1.9%)
Short Float %5.95%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.84%
Min EPS beat(2)1.04%
Max EPS beat(2)16.63%
EPS beat(4)4
Avg EPS beat(4)26.81%
Min EPS beat(4)1.04%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)26.42%
EPS beat(12)10
Avg EPS beat(12)-16.98%
EPS beat(16)10
Avg EPS beat(16)-61.33%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)3.69%
Revenue beat(4)3
Avg Revenue beat(4)3.88%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)7.5%
Revenue beat(8)6
Avg Revenue beat(8)3.56%
Revenue beat(12)10
Avg Revenue beat(12)3.44%
Revenue beat(16)11
Avg Revenue beat(16)0.92%
PT rev (1m)10.23%
PT rev (3m)40.28%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)6.35%
EPS NY rev (1m)4.15%
EPS NY rev (3m)8.03%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.07 | ||
| Fwd PE | 48.9 | ||
| P/S | 44.16 | ||
| P/FCF | 71.75 | ||
| P/OCF | 71.64 | ||
| P/B | 165.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 64.86 |
EPS(TTM)8.79
EY1.22%
EPS(NY)14.75
Fwd EY2.04%
FCF(TTM)10.05
FCFY1.39%
OCF(TTM)10.07
OCFY1.4%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.76
PEG (5Y)0.97
Graham Number29.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 44.61% | ||
| ROE | 191.99% | ||
| ROCE | 66.36% | ||
| ROIC | 52.42% | ||
| ROICexc | 76.68% | ||
| ROICexgc | 168.43% | ||
| OM | 63.35% | ||
| PM (TTM) | 51.26% | ||
| GM | 83.31% | ||
| FCFM | 61.55% |
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%
ROICexgc growth 3Y130.55%
ROICexgc growth 5YN/A
ROICexc growth 3Y131.05%
ROICexc growth 5Y6.08%
OM growth 3Y94.93%
OM growth 5Y15.27%
PM growth 3Y209%
PM growth 5Y34.24%
GM growth 3Y5.19%
GM growth 5Y-0.13%
F-Score9
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 23.08 | ||
| Cash Conversion | 89.85% | ||
| Profit Quality | 120.08% | ||
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 33.42 |
F-Score9
WACC10.9%
ROIC/WACC4.81
Cap/Depr(3y)1.05%
Cap/Depr(5y)1.14%
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)166.36%
EPS 3Y269.22%
EPS 5Y84.83%
EPS Q2Q%96%
EPS Next Y108.36%
EPS Next 2Y80.25%
EPS Next 3Y62.15%
EPS Next 5Y44.45%
Revenue 1Y (TTM)40.81%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
Revenue Next Year24.1%
Revenue Next 2Y30.15%
Revenue Next 3Y29.01%
Revenue Next 5Y27.3%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.5%
EBIT Next 3Y64.46%
EBIT Next 5Y50.97%
FCF growth 1Y291.13%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y286.36%
OCF growth 3Y79.68%
OCF growth 5Y60.28%
APPLOVIN CORP-CLASS A / APP FAQ
What is the fundamental rating for APP stock?
ChartMill assigns a fundamental rating of 7 / 10 to APP.
What is the valuation status for 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.
What are the PE and PB ratios of APPLOVIN CORP-CLASS A (APP) stock?
The Price/Earnings (PE) ratio for APPLOVIN CORP-CLASS A (APP) is 82.07 and the Price/Book (PB) ratio is 165.4.
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 108.36% in the next year.