647.72 USD
+31.19 (+5.06%)
648.33 USD
+0.61 (+0.09%)
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 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.
In the past year APP had a positive cash flow from operations.
In multiple years APP reported negative net income over the last 5 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.
Looking at the Return On Equity, with a value of 191.99%, APP belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
With an excellent Return On Invested Capital value of 52.42%, APP belongs to the best of the industry, outperforming 98.91% 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 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 93.48% of its industry peers.
In the last couple of years the Profit Margin of APP has grown nicely.
The Operating Margin of APP (63.35%) is better than 97.83% of its industry peers.
APP's Operating Margin has improved in the last couple of years.
APP's Gross Margin of 83.31% is amongst the best of the industry. APP outperforms 89.13% 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.
Compared to 1 year ago, APP has about the same amount of shares outstanding.
The number of shares outstanding for APP has been reduced compared to 5 years ago.
Compared to 1 year ago, APP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 29.05 indicates that APP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 29.05, APP belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
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.
The Debt to FCF ratio of APP (1.03) is better than 74.64% 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.
APP has a Debt to Equity ratio of 2.38. This is amonst the worse of the industry: APP underperforms 83.33% of its industry peers.
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 | 29.05 |
ROIC/WACC4.78
WACC10.97%
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.
With a decent Current ratio value of 3.25, APP is doing good in the industry, outperforming 77.54% 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.
Looking at the Quick ratio, with a value of 3.25, APP is in the better half of the industry, outperforming 77.54% 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!
The Revenue has been growing by 36.49% on average over the past years. This is a very strong growth!
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
The Revenue is expected to grow by 27.30% on average over the next years. This is a very strong growth
EPS Next Y107.54%
EPS Next 2Y80.26%
EPS Next 3Y62.05%
EPS Next 5Y44.45%
Revenue Next Year23.92%
Revenue Next 2Y30.4%
Revenue Next 3Y29.14%
Revenue Next 5Y27.3%
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
With a Price/Earnings ratio of 73.69, APP can be considered very expensive at the moment.
APP's Price/Earnings is on the same level as the industry average.
APP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 43.91 indicates a quite expensive valuation of APP.
APP's Price/Forward Earnings ratio is in line with the industry average.
APP is valuated expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.69 | ||
| Fwd PE | 43.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as APP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.42 | ||
| EV/EBITDA | 55.51 |
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 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 62.05% in the coming years.
PEG (NY)0.69
PEG (5Y)0.87
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% |
647.72
+31.19 (+5.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.68%
Inst Owner Change0%
Ins Owners4.65%
Ins Owner Change-0.4%
Market Cap218.90B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.21
Price Target740.59 (14.34%)
Short Float %6.1%
Short Ratio3.73
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)3.44%
PT rev (3m)24.52%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)5.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.66%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.69 | ||
| Fwd PE | 43.91 | ||
| P/S | 39.65 | ||
| P/FCF | 64.42 | ||
| P/OCF | 64.33 | ||
| P/B | 148.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.51 |
EPS(TTM)8.79
EY1.36%
EPS(NY)14.75
Fwd EY2.28%
FCF(TTM)10.05
FCFY1.55%
OCF(TTM)10.07
OCFY1.55%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.69
PEG (5Y)0.87
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 | 29.05 |
F-Score9
WACC10.97%
ROIC/WACC4.78
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 Year23.92%
Revenue Next 2Y30.4%
Revenue Next 3Y29.14%
Revenue Next 5Y27.3%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.56%
EBIT Next 3Y65.28%
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
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.