APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis
USA - NASDAQ:APP - US03831W1080 - Common Stock
557.7 USD
+1.55 (+0.28%)
559 USD
+1.3 (+0.23%)
Taking everything into account, APP scores 8 out of 10 in our fundamental rating. APP was compared to 281 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! This makes APP very considerable 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.
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.
APP's Return On Equity of 191.99% is amongst the best of the industry. APP outperforms 99.64% of its industry peers.
The Return On Invested Capital of APP (52.42%) is better than 98.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APP is above the industry average of 12.07%.
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 94.31% of the companies in the same industry.
In the last couple of years the Profit Margin of APP has grown nicely.
APP's Operating Margin of 63.35% is amongst the best of the industry. APP outperforms 97.86% 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 90.39% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APP 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.
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 26.62 indicates that APP is not in any danger for bankruptcy at the moment.
The Altman-Z score of APP (26.62) is better than 95.73% of its industry peers.
APP has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
APP has a better Debt to FCF ratio (1.03) than 75.44% 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.
Looking at the Debt to Equity ratio, with a value of 2.38, APP is doing worse than 81.85% 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 | 26.62 |
ROIC/WACC4.77
WACC10.99%
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 78.65% 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 Quick ratio of 3.25. This is in the better half of the industry: APP outperforms 79.00% 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
APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.81%.
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
The Earnings Per Share is expected to grow by 31.97% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 26.64% on average over the next years. This is a very strong growth
EPS Next Y100.06%
EPS Next 2Y75.81%
EPS Next 3Y58.08%
EPS Next 5Y31.97%
Revenue Next Year21.68%
Revenue Next 2Y27.51%
Revenue Next 3Y27.12%
Revenue Next 5Y26.64%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 63.45 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.
The average S&P500 Price/Earnings ratio is at 25.89. APP is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 39.74, APP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, APP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.45 | ||
| Fwd PE | 39.74 |
4.2 Price Multiples
64.06% 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 | 55.52 | ||
| EV/EBITDA | 50.3 |
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 58.08% in the coming years.
PEG (NY)0.63
PEG (5Y)0.75
EPS Next 2Y75.81%
EPS Next 3Y58.08%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
557.7
+1.55 (+0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.06%
Inst Owner Change6.06%
Ins Owners4.73%
Ins Owner Change-0.47%
Market Cap188.64B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target666.86 (19.57%)
Short Float %6.87%
Short Ratio2.23
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)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)12.12%
PT rev (3m)35.85%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)15.28%
EPS NY rev (1m)1.7%
EPS NY rev (3m)11.06%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)5.9%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.45 | ||
| Fwd PE | 39.74 | ||
| P/S | 34.17 | ||
| P/FCF | 55.52 | ||
| P/OCF | 55.44 | ||
| P/B | 127.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 50.3 |
EPS(TTM)8.79
EY1.58%
EPS(NY)14.03
Fwd EY2.52%
FCF(TTM)10.05
FCFY1.8%
OCF(TTM)10.06
OCFY1.8%
SpS16.32
BVpS4.36
TBVpS-1.45
PEG (NY)0.63
PEG (5Y)0.75
Graham Number29.36
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 | 26.62 |
F-Score9
WACC10.99%
ROIC/WACC4.77
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 Y100.06%
EPS Next 2Y75.81%
EPS Next 3Y58.08%
EPS Next 5Y31.97%
Revenue 1Y (TTM)40.81%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
Revenue Next Year21.68%
Revenue Next 2Y27.51%
Revenue Next 3Y27.12%
Revenue Next 5Y26.64%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year136.13%
EBIT Next 3Y58.7%
EBIT Next 5Y47.08%
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 8 / 10 to APP.
What is the valuation status for APP stock?
ChartMill assigns a valuation rating of 5 / 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 63.45 and the Price/Book (PB) ratio is 127.99.
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 100.06% in the next year.