520.26 USD
-0.56 (-0.11%)
523.1 USD
+2.84 (+0.55%)
Overall APP gets a fundamental rating of 8 out of 10. We evaluated APP against 281 industry peers in the Software industry. APP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. APP is growing strongly while it is still valued neutral. This is a good combination! These ratings would make APP suitable 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.
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
APP has a Return On Assets of 44.61%. This is amongst the best in the industry. APP outperforms 98.93% of its industry peers.
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's Return On Invested Capital of 52.42% is amongst the best of the industry. APP outperforms 98.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APP is above the industry average of 12.04%.
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
The Profit Margin of APP (51.26%) is better than 94.31% of its industry peers.
In the last couple of years the Profit Margin of APP has grown nicely.
With an excellent Operating Margin value of 63.35%, APP belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
In the last couple of years the Operating Margin of APP has grown nicely.
With an excellent Gross Margin value of 83.31%, APP belongs to the best of the industry, outperforming 90.39% of the companies in the same industry.
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.
APP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, APP has less shares outstanding
Compared to 1 year ago, APP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 25.09 indicates that APP is not in any danger for bankruptcy at the moment.
APP's Altman-Z score of 25.09 is amongst the best of the industry. APP outperforms 95.73% 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.
Looking at the Debt to FCF ratio, with a value of 1.03, APP is in the better half of the industry, outperforming 75.80% of the companies in the same industry.
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: 81.85% 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 | 25.09 |
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.
The Current ratio of APP (3.25) is better than 78.65% of its industry peers.
APP has a Quick Ratio of 3.25. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of APP (3.25) is better than 79.00% of its industry peers.
| 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.
Measured over the past years, APP shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.83% on average per year.
Looking at the last year, APP shows a very strong growth in Revenue. 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
APP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.64% yearly.
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
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
APP is valuated quite expensively with a Price/Earnings ratio of 59.19.
The rest of the industry has a similar Price/Earnings ratio as APP.
APP is valuated expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
APP is valuated quite expensively with a Price/Forward Earnings ratio of 37.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
APP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.19 | ||
| Fwd PE | 37.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APP is valued a bit cheaper than 63.35% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as APP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.79 | ||
| EV/EBITDA | 47.01 |
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.
APP's earnings are expected to grow with 58.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)0.7
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 |
520.26
-0.56 (-0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.06%
Inst Owner Change22.25%
Ins Owners4.73%
Ins Owner Change-0.87%
Market Cap175.98B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target716 (37.62%)
Short Float %6.46%
Short Ratio2.21
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 | 59.19 | ||
| Fwd PE | 37.08 | ||
| P/S | 31.88 | ||
| P/FCF | 51.79 | ||
| P/OCF | 51.72 | ||
| P/B | 119.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.01 |
EPS(TTM)8.79
EY1.69%
EPS(NY)14.03
Fwd EY2.7%
FCF(TTM)10.05
FCFY1.93%
OCF(TTM)10.06
OCFY1.93%
SpS16.32
BVpS4.36
TBVpS-1.45
PEG (NY)0.59
PEG (5Y)0.7
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 | 25.09 |
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 59.19 and the Price/Book (PB) ratio is 119.39.
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.