547 USD
-18.52 (-3.27%)
Overall APP gets a fundamental rating of 7 out of 10. We evaluated APP against 277 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 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
- 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.
- In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
- APP's Return On Assets of 44.61% is amongst the best of the industry. APP outperforms 99.28% of its industry peers.
- The Return On Equity of APP (191.99%) is better than 99.64% of its industry peers.
- With an excellent Return On Invested Capital value of 52.42%, APP belongs to the best of the industry, outperforming 98.92% 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
- With an excellent Profit Margin value of 51.26%, APP belongs to the best of the industry, outperforming 93.50% of the companies in the same industry.
- APP's Profit Margin has improved in the last couple of years.
- 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.
- Compared to 1 year ago, APP has about the same amount of shares outstanding.
- 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
- APP has an Altman-Z score of 26.93. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 26.93, APP belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
- 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 74.73% 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.
- Looking at the Debt to Equity ratio, with a value of 2.38, APP is doing worse than 83.39% 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 | 2.38 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 26.93 |
ROIC/WACC4.71
WACC11.13%
2.3 Liquidity
- A Current Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.25, APP is doing good in the industry, outperforming 76.90% 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.
- The Quick ratio of APP (3.25) is better than 76.90% 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
- Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 40.81%.
- 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
- The Earnings Per Share is expected to grow by 44.45% on average over the next years. This is a very strong growth
- APP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.22% yearly.
EPS Next Y107.54%
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
- 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
- The Price/Earnings ratio is 62.23, which means the current valuation is very expensive for APP.
- Compared to the rest of the industry, the Price/Earnings ratio of APP is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of APP to the average of the S&P500 Index (26.94), we can say APP is valued expensively.
- A Price/Forward Earnings ratio of 37.08 indicates a quite expensive valuation of APP.
- The rest of the industry has a similar Price/Forward Earnings ratio as APP.
- APP is valuated expensively when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.23 | ||
| Fwd PE | 37.08 |
4.2 Price Multiples
- 60.29% of the companies in the same industry are more expensive than APP, based on the Enterprise Value to EBITDA ratio.
- APP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.4 | ||
| EV/EBITDA | 50.95 |
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 62.05% in the coming years.
PEG (NY)0.58
PEG (5Y)0.73
EPS Next 2Y80.26%
EPS Next 3Y62.05%
5. Dividend
5.1 Amount
- APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:APP (1/21/2026, 10:01:08 AM)
547
-18.52 (-3.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners77.68%
Inst Owner Change0.06%
Ins Owners4.65%
Ins Owner Change-0.4%
Market Cap184.86B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.21
Price Target748.1 (36.76%)
Short Float %6.28%
Short Ratio3.71
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)1.77%
PT rev (3m)25.78%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)5.5%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.23 | ||
| Fwd PE | 37.08 | ||
| P/S | 33.49 | ||
| P/FCF | 54.4 | ||
| P/OCF | 54.33 | ||
| P/B | 125.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 50.95 |
EPS(TTM)8.79
EY1.61%
EPS(NY)14.75
Fwd EY2.7%
FCF(TTM)10.05
FCFY1.84%
OCF(TTM)10.07
OCFY1.84%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.58
PEG (5Y)0.73
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 | 26.93 |
F-Score9
WACC11.13%
ROIC/WACC4.71
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 Y107.54%
EPS Next 2Y80.26%
EPS Next 3Y62.05%
EPS Next 5Y44.45%
Revenue 1Y (TTM)40.81%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
Revenue Next Year24.01%
Revenue Next 2Y30.38%
Revenue Next 3Y29.2%
Revenue Next 5Y27.22%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.56%
EBIT Next 3Y65.28%
EBIT Next 5Y49.6%
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
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.