676.38 USD
+14.17 (+2.14%)
Taking everything into account, APP scores 7 out of 10 in our fundamental rating. APP was compared to 281 industry peers in the Software industry. APP gets an excellent profitability rating and is at the same time showing great financial health properties. APP is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
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
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.
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.
With an excellent Return On Invested Capital value of 52.42%, APP belongs to the best of the industry, outperforming 98.58% 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 12.03%.
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
APP has a better Profit Margin (51.26%) than 94.31% of its industry peers.
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.
APP's Gross Margin of 83.31% is amongst the best of the industry. APP outperforms 89.68% of its industry peers.
APP's Gross Margin has been stable in the last couple of years.
| 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.
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 30.96 indicates that APP is not in any danger for bankruptcy at the moment.
APP has a Altman-Z score of 30.96. This is amongst the best in the industry. APP outperforms 96.09% 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.
With a decent Debt to FCF ratio value of 1.03, APP is doing good in the industry, outperforming 75.09% 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.
APP has a worse Debt to Equity ratio (2.38) than 82.92% of its industry peers.
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 | 30.96 |
ROIC/WACC4.83
WACC10.85%
2.3 Liquidity
A Current Ratio of 3.25 indicates that APP has no problem at all paying 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.
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.
APP's Quick ratio of 3.25 is fine compared to the rest 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
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
Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 40.81%.
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
APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.45% yearly.
APP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.30% yearly.
EPS Next Y100.06%
EPS Next 2Y75.81%
EPS Next 3Y58.08%
EPS Next 5Y44.45%
Revenue Next Year21.68%
Revenue Next 2Y27.51%
Revenue Next 3Y27.12%
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
The Price/Earnings ratio is 76.95, which means the current valuation is very expensive for APP.
APP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.37. APP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 48.20, the valuation of APP can be described as expensive.
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 rather expensively when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.95 | ||
| Fwd PE | 48.2 |
4.2 Price Multiples
60.14% of the companies in the same industry are more expensive than APP, based on the Enterprise Value to EBITDA ratio.
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 | 67.27 | ||
| EV/EBITDA | 59.58 |
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)0.77
PEG (5Y)0.91
EPS Next 2Y75.81%
EPS Next 3Y58.08%
5. Dividend
5.1 Amount
APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:APP (12/4/2025, 9:56:10 AM)
676.38
+14.17 (+2.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.06%
Inst Owner Change22.23%
Ins Owners4.73%
Ins Owner Change-0.41%
Market Cap228.58B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target716 (5.86%)
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)20.38%
PT rev (3m)41.02%
EPS NQ rev (1m)3.61%
EPS NQ rev (3m)7.63%
EPS NY rev (1m)1.98%
EPS NY rev (3m)3.73%
Revenue NQ rev (1m)3.12%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.95 | ||
| Fwd PE | 48.2 | ||
| P/S | 41.41 | ||
| P/FCF | 67.27 | ||
| P/OCF | 67.18 | ||
| P/B | 155.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 59.58 |
EPS(TTM)8.79
EY1.3%
EPS(NY)14.03
Fwd EY2.07%
FCF(TTM)10.05
FCFY1.49%
OCF(TTM)10.07
OCFY1.49%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.77
PEG (5Y)0.91
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 | 30.96 |
F-Score9
WACC10.85%
ROIC/WACC4.83
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 5Y44.45%
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 5Y27.3%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year136.13%
EBIT Next 3Y58.7%
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 76.95 and the Price/Book (PB) ratio is 155.08.
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.