APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis

NASDAQ:APP • US03831W1080

434.77 USD
-10.16 (-2.28%)
At close: Feb 27, 2026
434 USD
-0.77 (-0.18%)
After Hours: 2/27/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to APP. APP was compared to 275 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, APP could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

9

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.
  • Of the past 5 years APP 4 years were profitable.
  • Each year in the past 5 years APP had a positive operating cash flow.
APP Yearly Net Income VS EBIT VS OCF VS FCFAPP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • APP's Return On Assets of 45.92% is amongst the best of the industry. APP outperforms 99.27% of its industry peers.
  • APP has a Return On Equity of 156.15%. This is amongst the best in the industry. APP outperforms 100.00% of its industry peers.
  • APP has a Return On Invested Capital of 61.04%. This is amongst the best in the industry. APP outperforms 98.91% of its industry peers.
  • APP had an Average Return On Invested Capital over the past 3 years of 35.79%. This is significantly above the industry average of 10.80%.
  • The 3 year average ROIC (35.79%) for APP is below the current ROIC(61.04%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 45.92%
ROE 156.15%
ROIC 61.04%
ROA(3y)26.47%
ROA(5y)15.33%
ROE(3y)109.7%
ROE(5y)64.09%
ROIC(3y)35.79%
ROIC(5y)22.21%
APP Yearly ROA, ROE, ROICAPP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 0 50 100 150

1.3 Margins

  • With an excellent Profit Margin value of 57.41%, APP belongs to the best of the industry, outperforming 94.16% of the companies in the same industry.
  • APP has a Operating Margin of 71.73%. This is amongst the best in the industry. APP outperforms 97.81% of its industry peers.
  • APP's Operating Margin has improved in the last couple of years.
  • The Gross Margin of APP (86.48%) is better than 87.96% of its industry peers.
  • In the last couple of years the Gross Margin of APP has grown nicely.
Industry RankSector Rank
OM 71.73%
PM (TTM) 57.41%
GM 86.48%
OM growth 3Y198.66%
OM growth 5Y121.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.59%
GM growth 5Y7.32%
APP Yearly Profit, Operating, Gross MarginsAPP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • APP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, APP has less 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.
APP Yearly Shares OutstandingAPP Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
APP Yearly Total Debt VS Total AssetsAPP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • APP has an Altman-Z score of 20.74. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of APP (20.74) is better than 96.35% of its industry peers.
  • The Debt to FCF ratio of APP is 0.87, which is an excellent value as it means it would take APP, only 0.87 years of fcf income to pay off all of its debts.
  • APP's Debt to FCF ratio of 0.87 is fine compared to the rest of the industry. APP outperforms 74.45% of its industry peers.
  • APP has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
  • APP has a Debt to Equity ratio of 1.65. This is amonst the worse of the industry: APP underperforms 84.31% 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 RankSector Rank
Debt/Equity 1.65
Debt/FCF 0.87
Altman-Z 20.74
ROIC/WACC5.59
WACC10.92%
APP Yearly LT Debt VS Equity VS FCFAPP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 3.32 indicates that APP has no problem at all paying its short term obligations.
  • The Current ratio of APP (3.32) is better than 76.64% of its industry peers.
  • A Quick Ratio of 3.32 indicates that APP has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 3.32, APP is doing good in the industry, outperforming 76.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.32
Quick Ratio 3.32
APP Yearly Current Assets VS Current LiabilitesAPP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.87%, which is quite impressive.
  • Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 45.98%.
  • Measured over the past years, APP shows a very strong growth in Revenue. The Revenue has been growing by 30.45% on average per year.
EPS 1Y (TTM)126.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.28%
Revenue 1Y (TTM)45.98%
Revenue growth 3Y24.84%
Revenue growth 5Y30.45%
Sales Q2Q%20.77%

3.2 Future

  • The Earnings Per Share is expected to grow by 27.96% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, APP will show a very strong growth in Revenue. The Revenue will grow by 26.04% on average per year.
EPS Next Y42.94%
EPS Next 2Y37.78%
EPS Next 3Y29.19%
EPS Next 5Y27.96%
Revenue Next Year38.89%
Revenue Next 2Y33.69%
Revenue Next 3Y31.18%
Revenue Next 5Y26.04%

3.3 Evolution

  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
APP Yearly Revenue VS EstimatesAPP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 10B 20B 30B
APP Yearly EPS VS EstimatesAPP Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 10 20 30 40 50

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 42.21, 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.
  • APP is valuated expensively when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 29.53, the valuation of APP can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as APP.
  • APP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 42.21
Fwd PE 29.53
APP Price Earnings VS Forward Price EarningsAPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a somewhat cheap valuation: APP is cheaper than 60.22% of the companies listed in the same industry.
  • APP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 36.59
EV/EBITDA 33.94
APP Per share dataAPP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
  • APP's earnings are expected to grow with 29.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y37.78%
EPS Next 3Y29.19%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • APP does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

APPLOVIN CORP-CLASS A

NASDAQ:APP (2/27/2026, 8:00:02 PM)

After market: 434 -0.77 (-0.18%)

434.77

-10.16 (-2.28%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners77.68%
Inst Owner Change0.06%
Ins Owners4.65%
Ins Owner Change-0.14%
Market Cap146.93B
Revenue(TTM)5.81B
Net Income(TTM)3.33B
Analysts81.76
Price Target683.67 (57.25%)
Short Float %5.22%
Short Ratio2.35
Dividend
Industry RankSector 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)5.26%
Min EPS beat(2)1.04%
Max EPS beat(2)9.47%
EPS beat(4)4
Avg EPS beat(4)19.65%
Min EPS beat(4)1.04%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)22.96%
EPS beat(12)11
Avg EPS beat(12)26.7%
EPS beat(16)11
Avg EPS beat(16)-59.14%
Revenue beat(2)2
Avg Revenue beat(2)3.08%
Min Revenue beat(2)2.47%
Max Revenue beat(2)3.69%
Revenue beat(4)3
Avg Revenue beat(4)2.63%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)6.23%
Revenue beat(8)6
Avg Revenue beat(8)3.66%
Revenue beat(12)10
Avg Revenue beat(12)3.58%
Revenue beat(16)11
Avg Revenue beat(16)1.03%
PT rev (1m)-8.61%
PT rev (3m)-4.52%
EPS NQ rev (1m)7.8%
EPS NQ rev (3m)7.63%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)4.16%
Revenue NQ rev (3m)4.96%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)5.96%
Valuation
Industry RankSector Rank
PE 42.21
Fwd PE 29.53
P/S 25.31
P/FCF 36.59
P/OCF 36.59
P/B 68.83
P/tB 742.18
EV/EBITDA 33.94
EPS(TTM)10.3
EY2.37%
EPS(NY)14.72
Fwd EY3.39%
FCF(TTM)11.88
FCFY2.73%
OCF(TTM)11.88
OCFY2.73%
SpS17.18
BVpS6.32
TBVpS0.59
PEG (NY)0.98
PEG (5Y)N/A
Graham Number38.26
Profitability
Industry RankSector Rank
ROA 45.92%
ROE 156.15%
ROCE 70.27%
ROIC 61.04%
ROICexc 105.18%
ROICexgc 240.8%
OM 71.73%
PM (TTM) 57.41%
GM 86.48%
FCFM 69.16%
ROA(3y)26.47%
ROA(5y)15.33%
ROE(3y)109.7%
ROE(5y)64.09%
ROIC(3y)35.79%
ROIC(5y)22.21%
ROICexc(3y)53.06%
ROICexc(5y)32.82%
ROICexgc(3y)143.35%
ROICexgc(5y)89.93%
ROCE(3y)41.23%
ROCE(5y)25.58%
ROICexgc growth 3Y189.37%
ROICexgc growth 5YN/A
ROICexc growth 3Y298.66%
ROICexc growth 5Y136.27%
OM growth 3Y198.66%
OM growth 5Y121.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.59%
GM growth 5Y7.32%
F-Score9
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF 0.87
Debt/EBITDA 0.81
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 92.12%
Profit Quality 120.47%
Current Ratio 3.32
Quick Ratio 3.32
Altman-Z 20.74
F-Score9
WACC10.92%
ROIC/WACC5.59
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)183.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)126.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.28%
EPS Next Y42.94%
EPS Next 2Y37.78%
EPS Next 3Y29.19%
EPS Next 5Y27.96%
Revenue 1Y (TTM)45.98%
Revenue growth 3Y24.84%
Revenue growth 5Y30.45%
Sales Q2Q%20.77%
Revenue Next Year38.89%
Revenue Next 2Y33.69%
Revenue Next 3Y31.18%
Revenue Next 5Y26.04%
EBIT growth 1Y123.14%
EBIT growth 3Y272.84%
EBIT growth 5Y188.9%
EBIT Next Year68.22%
EBIT Next 3Y40.01%
EBIT Next 5Y32.94%
FCF growth 1Y91.74%
FCF growth 3Y114.62%
FCF growth 5Y78.82%
OCF growth 1Y91.3%
OCF growth 3Y113.47%
OCF growth 5Y78.29%

APPLOVIN CORP-CLASS A / APP FAQ

Can you provide the ChartMill fundamental rating for APPLOVIN CORP-CLASS A?

ChartMill assigns a fundamental rating of 6 / 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 8 / 10.


Can you provide the financial health for APP stock?

The financial health rating of APPLOVIN CORP-CLASS A (APP) is 7 / 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 42.94% in the next year.