APPLOVIN CORP-CLASS A (APP)
US03831W1080 - Common Stock
We assign a fundamental rating of 6 out of 10 to APP. APP was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes APP very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year APP was profitable.
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.
In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
APP's Return On Assets of 21.13% is amongst the best of the industry. APP outperforms 96.04% of its industry peers.
APP has a better Return On Equity (122.59%) than 99.28% of its industry peers.
APP has a better Return On Invested Capital (26.01%) than 96.76% of its industry peers.
APP had an Average Return On Invested Capital over the past 3 years of 4.97%. This is significantly below the industry average of 12.23%.
The last Return On Invested Capital (26.01%) for APP is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.13% | ||
| ROE | 122.59% | ||
| ROIC | 26.01% |
ROA(3y)1.28%
ROA(5y)0.88%
ROE(3y)6.54%
ROE(5y)N/A
ROIC(3y)4.97%
ROIC(5y)6.38%
1.3 Margins
Looking at the Profit Margin, with a value of 26.81%, APP belongs to the top of the industry, outperforming 93.17% of the companies in the same industry.
With an excellent Operating Margin value of 35.78%, APP belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
In the last couple of years the Operating Margin of APP has declined.
Looking at the Gross Margin, with a value of 73.89%, APP is in the better half of the industry, outperforming 62.23% of the companies in the same industry.
APP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.78% | ||
| PM (TTM) | 26.81% | ||
| GM | 73.89% |
OM growth 3Y140.1%
OM growth 5Y-16.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.15%
GM growth 5Y-5.29%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APP is creating value.
The number of shares outstanding for APP has been reduced compared to 1 year ago.
Compared to 5 years ago, APP has less shares outstanding
APP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 16.21 indicates that APP is not in any danger for bankruptcy at the moment.
The Altman-Z score of APP (16.21) is better than 90.65% of its industry peers.
APP has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as APP would need 2.01 years to pay back of all of its debts.
APP's Debt to FCF ratio of 2.01 is fine compared to the rest of the industry. APP outperforms 66.19% of its industry peers.
APP has a Debt/Equity ratio of 3.70. This is a high value indicating a heavy dependency on external financing.
APP has a worse Debt to Equity ratio (3.70) than 85.61% 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 | 3.7 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 16.21 |
ROIC/WACC2.21
WACC11.78%
2.3 Liquidity
A Current Ratio of 2.41 indicates that APP has no problem at all paying its short term obligations.
APP has a better Current ratio (2.41) than 66.91% of its industry peers.
A Quick Ratio of 2.41 indicates that APP has no problem at all paying its short term obligations.
APP's Quick ratio of 2.41 is fine compared to the rest of the industry. APP outperforms 68.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1000.00%, which is quite impressive.
The Revenue has grown by 41.48% 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 46.69% on average per year.
EPS 1Y (TTM)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%316.67%
Revenue 1Y (TTM)41.48%
Revenue growth 3Y31.28%
Revenue growth 5Y46.69%
Sales Q2Q%38.64%
3.2 Future
The Earnings Per Share is expected to grow by 32.41% on average over the next years. This is a very strong growth
APP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.27% yearly.
EPS Next Y302.17%
EPS Next 2Y140.32%
EPS Next 3Y97.27%
EPS Next 5Y32.41%
Revenue Next Year41%
Revenue Next 2Y30.65%
Revenue Next 3Y26.69%
Revenue Next 5Y14.27%
3.3 Evolution
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
The Price/Earnings ratio is 103.33, which means the current valuation is very expensive for APP.
APP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, APP is valued quite expensively.
With a Price/Forward Earnings ratio of 59.04, APP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as APP.
The average S&P500 Price/Forward Earnings ratio is at 22.83. APP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.33 | ||
| Fwd PE | 59.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APP is valued a bit cheaper than the industry average as 66.19% 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 | 65.45 | ||
| EV/EBITDA | 55.65 |
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 a very decent profitability rating, which may justify a higher PE ratio.
APP's earnings are expected to grow with 97.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y140.32%
EPS Next 3Y97.27%
5. Dividend
5.1 Amount
APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
APPLOVIN CORP-CLASS A
NASDAQ:APP (12/20/2024, 8:00:00 PM)
After market: 344.67 +3.68 (+1.08%)340.99
+22.25 (+6.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners55.68%
Inst Owner Change6.7%
Ins Owners49.95%
Ins Owner Change-2.79%
Market Cap114.43B
Analysts82
Price Target301.01 (-11.72%)
Short Float %7.65%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)25.44%
Min EPS beat(2)16.95%
Max EPS beat(2)33.93%
EPS beat(4)4
Avg EPS beat(4)26.04%
Min EPS beat(4)16.07%
Max EPS beat(4)37.19%
EPS beat(8)6
Avg EPS beat(8)-38.87%
EPS beat(12)6
Avg EPS beat(12)-90.71%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.87%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)4.92%
Revenue beat(4)3
Avg Revenue beat(4)3.24%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)7.52%
Revenue beat(8)7
Avg Revenue beat(8)3.21%
Revenue beat(12)8
Avg Revenue beat(12)-0.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)134.62%
PT rev (3m)207.68%
EPS NQ rev (1m)13.06%
EPS NQ rev (3m)46.79%
EPS NY rev (1m)8.87%
EPS NY rev (3m)17.22%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)10.66%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.33 | ||
| Fwd PE | 59.04 | ||
| P/S | 26.68 | ||
| P/FCF | 65.45 | ||
| P/OCF | 65.69 | ||
| P/B | 121.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.65 |
EPS(TTM)3.3
EY0.97%
EPS(NY)5.78
Fwd EY1.69%
FCF(TTM)5.21
FCFY1.53%
OCF(TTM)5.19
OCFY1.52%
SpS12.78
BVpS2.8
TBVpS-5.77
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.13% | ||
| ROE | 122.59% | ||
| ROCE | 32.92% | ||
| ROIC | 26.01% | ||
| ROICexc | 29.61% | ||
| ROICexgc | 99.45% | ||
| OM | 35.78% | ||
| PM (TTM) | 26.81% | ||
| GM | 73.89% | ||
| FCFM | 40.75% |
ROA(3y)1.28%
ROA(5y)0.88%
ROE(3y)6.54%
ROE(5y)N/A
ROIC(3y)4.97%
ROIC(5y)6.38%
ROICexc(3y)5.83%
ROICexc(5y)9.17%
ROICexgc(3y)27.54%
ROICexgc(5y)N/A
ROCE(3y)6.31%
ROCE(5y)8.08%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-34.1%
ROICexc growth 3Y115.69%
ROICexc growth 5Y-36.32%
OM growth 3Y140.1%
OM growth 5Y-16.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.15%
GM growth 5Y-5.29%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.7 | ||
| Debt/FCF | 2.01 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 3.36 | ||
| Cash Conversion | 88.2% | ||
| Profit Quality | 152.01% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 16.21 |
F-Score8
WACC11.78%
ROIC/WACC2.21
Cap/Depr(3y)1.12%
Cap/Depr(5y)1.65%
Cap/Sales(3y)0.19%
Cap/Sales(5y)0.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%316.67%
EPS Next Y302.17%
EPS Next 2Y140.32%
EPS Next 3Y97.27%
EPS Next 5Y32.41%
Revenue 1Y (TTM)41.48%
Revenue growth 3Y31.28%
Revenue growth 5Y46.69%
Sales Q2Q%38.64%
Revenue Next Year41%
Revenue Next 2Y30.65%
Revenue Next 3Y26.69%
Revenue Next 5Y14.27%
EBIT growth 1Y236.28%
EBIT growth 3Y215.2%
EBIT growth 5Y22.86%
EBIT Next Year336.78%
EBIT Next 3Y89.65%
EBIT Next 5Y43.94%
FCF growth 1Y433.36%
FCF growth 3Y68.83%
FCF growth 5Y50.35%
OCF growth 1Y420.64%
OCF growth 3Y68.24%
OCF growth 5Y50.17%