647.72 USD
+31.19 (+5.06%)
637 USD
-10.72 (-1.66%)
Overall APP gets a fundamental rating of 7 out of 10. We evaluated APP 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. These ratings would make APP suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
APP had positive earnings in the past year.
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.
In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of APP (44.61%) is better than 99.28% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 52.42%, APP belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
APP had an Average Return On Invested Capital over the past 3 years of 14.51%. This 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
APP's Profit Margin of 51.26% is amongst the best of the industry. APP outperforms 93.48% 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 97.83% of its industry peers.
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 89.13% of the companies in the same industry.
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
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 about the same amount of shares outstanding.
The number of shares outstanding for APP has been reduced compared to 5 years ago.
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
APP has an Altman-Z score of 30.35. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
APP has a Altman-Z score of 30.35. This is amongst the best in the industry. APP outperforms 97.10% 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.
The Debt to FCF ratio of APP (1.03) is better than 74.64% of its industry peers.
APP has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external 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 | 30.35 |
ROIC/WACC4.75
WACC11.03%
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 77.17% 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.
APP has a better Quick ratio (3.25) than 77.17% 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%.
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
APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.45% yearly.
The Revenue is expected to grow by 27.22% 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 5Y27.22%
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
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.
APP is valuated quite expensively with a Price/Forward Earnings ratio of 43.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, APP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.69 | ||
| Fwd PE | 43.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as APP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.42 | ||
| EV/EBITDA | 58.29 |
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 62.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.87
EPS Next 2Y80.26%
EPS Next 3Y62.05%
5. Dividend
5.1 Amount
No dividends for APP!.
| 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 Change0.06%
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)0.75%
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 | 58.29 |
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 | 30.35 |
F-Score9
WACC11.03%
ROIC/WACC4.75
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 5Y27.22%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.56%
EBIT Next 3Y65.28%
EBIT Next 5Y49.6%
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.