549.25 USD
+5.69 (+1.05%)
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. Both the health and profitability get an excellent rating, making APP a very profitable company, without any liquidiy or solvency issues. APP is showing excellent growth while it is valued at reasonable prices. 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
- APP had positive earnings in the past year.
- In the past year APP had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 44.61%, APP belongs to the best of the industry, outperforming 99.28% of the companies in the same industry.
- With an excellent Return On Equity value of 191.99%, APP belongs to the best of the industry, outperforming 99.64% of the companies in the same industry.
- APP has a Return On Invested Capital of 52.42%. This is amongst the best in 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 10.76%.
- 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
- The Profit Margin of APP (51.26%) is better than 93.53% of its industry peers.
- 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 97.84% 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 88.85% 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 | 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
- 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.
- 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
- An Altman-Z score of 26.01 indicates that APP is not in any danger for bankruptcy at the moment.
- APP has a Altman-Z score of 26.01. This is amongst the best in the industry. APP outperforms 96.76% 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.
- The Debt to FCF ratio of APP (1.03) is better than 74.82% 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.
- With a Debt to Equity ratio value of 2.38, APP is not doing good in the industry: 83.45% of the companies in the same industry are doing better.
- 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 | 26.01 |
ROIC/WACC4.73
WACC11.09%
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 better Current ratio (3.25) than 76.98% of its industry peers.
- A Quick Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.25, APP is in the better half of the industry, outperforming 76.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 166.36% over the past year.
- 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!
- APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.49% yearly.
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
- APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.45% yearly.
- APP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.22% yearly.
EPS Next Y107.83%
EPS Next 2Y80.05%
EPS Next 3Y62.52%
EPS Next 5Y44.45%
Revenue Next Year24.01%
Revenue Next 2Y30.35%
Revenue Next 3Y29.22%
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.
- 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
- A Price/Earnings ratio of 62.49 indicates a quite expensive valuation of APP.
- APP's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, APP is valued quite expensively.
- APP is valuated quite expensively with a Price/Forward Earnings ratio of 37.32.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. APP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.49 | ||
| Fwd PE | 37.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a somewhat cheap valuation: APP is cheaper than 60.07% of the companies listed 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 | 54.63 | ||
| EV/EBITDA | 48.99 |
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 62.52% in the coming years.
PEG (NY)0.58
PEG (5Y)0.74
EPS Next 2Y80.05%
EPS Next 3Y62.52%
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 107.83% in the next year.