708.69 USD
-15.93 (-2.2%)
Taking everything into account, APP scores 7 out of 10 in our fundamental rating. APP was compared to 280 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 overvalued while it is showing excellent growth. This is an interesting 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.
Each year in the past 5 years APP had a positive operating cash flow.
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.
APP has a Return On Equity of 191.99%. This is amongst the best in the industry. APP outperforms 99.64% of its industry peers.
APP's Return On Invested Capital of 52.42% is amongst the best of the industry. APP outperforms 98.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APP is above the industry average of 10.98%.
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
APP has a better Profit Margin (51.26%) than 94.64% of its industry peers.
APP's Profit Margin has improved in the last couple of years.
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.
APP's Operating Margin has improved in the last couple of years.
APP has a Gross Margin of 83.31%. This is amongst the best in the industry. APP outperforms 89.29% 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.
Compared to 5 years ago, APP has less shares outstanding
APP has a better debt/assets ratio than last year.
2.2 Solvency
APP has an Altman-Z score of 33.55. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
APP has a better Altman-Z score (33.55) than 96.07% 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.
The Debt to FCF ratio of APP (1.03) is better than 75.00% 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 82.50% 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 | 33.55 |
ROIC/WACC4.78
WACC10.96%
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 77.86% of its industry peers.
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 77.86% of the companies in the same industry.
| 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.
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.
The Revenue has grown by 40.81% in the past year. This is a very strong growth!
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
The Revenue is expected to grow by 27.30% on average over the next years. This is a very strong growth
EPS Next Y108.36%
EPS Next 2Y80.25%
EPS Next 3Y62.15%
EPS Next 5Y44.45%
Revenue Next Year24.1%
Revenue Next 2Y30.15%
Revenue Next 3Y29.01%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 80.62, APP can be considered very expensive at the moment.
APP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.29, APP is valued quite expensively.
APP is valuated quite expensively with a Price/Forward Earnings ratio of 48.05.
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 23.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.62 | ||
| Fwd PE | 48.05 |
4.2 Price Multiples
APP's Enterprise Value to EBITDA is on the same level as the industry average.
APP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.48 | ||
| EV/EBITDA | 65.15 |
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.
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 62.15% in the coming years.
PEG (NY)0.74
PEG (5Y)0.95
EPS Next 2Y80.25%
EPS Next 3Y62.15%
5. Dividend
5.1 Amount
APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:APP (12/10/2025, 10:13:07 AM)
708.69
-15.93 (-2.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.17%
Inst Owner Change22.25%
Ins Owners4.66%
Ins Owner Change-0.38%
Market Cap239.50B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target735.09 (3.73%)
Short Float %6.56%
Short Ratio3.07
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)10.23%
PT rev (3m)42.39%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)6.61%
EPS NY rev (1m)4.15%
EPS NY rev (3m)8.03%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)6.25%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.62 | ||
| Fwd PE | 48.05 | ||
| P/S | 43.38 | ||
| P/FCF | 70.48 | ||
| P/OCF | 70.38 | ||
| P/B | 162.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 65.15 |
EPS(TTM)8.79
EY1.24%
EPS(NY)14.75
Fwd EY2.08%
FCF(TTM)10.05
FCFY1.42%
OCF(TTM)10.07
OCFY1.42%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.74
PEG (5Y)0.95
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 | 33.55 |
F-Score9
WACC10.96%
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 Y108.36%
EPS Next 2Y80.25%
EPS Next 3Y62.15%
EPS Next 5Y44.45%
Revenue 1Y (TTM)40.81%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
Revenue Next Year24.1%
Revenue Next 2Y30.15%
Revenue Next 3Y29.01%
Revenue Next 5Y27.3%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.5%
EBIT Next 3Y64.46%
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
What is the fundamental rating for APP stock?
ChartMill assigns a fundamental rating of 7 / 10 to APP.
What is the valuation status for 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.
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 80.62 and the Price/Book (PB) ratio is 162.49.
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 108.36% in the next year.