618.32 USD
-55.5 (-8.24%)
620.17 USD
+1.85 (+0.3%)
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 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! This makes APP very considerable 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.
In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 44.61%, APP belongs to the best of the industry, outperforming 99.28% of the companies in the same industry.
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 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 93.84% of its industry peers.
In the last couple of years the Profit Margin of APP has grown nicely.
APP has a Operating Margin of 63.35%. This is amongst the best in the industry. APP outperforms 97.83% of its industry peers.
APP's Operating Margin has improved in the last couple of years.
APP has a better Gross Margin (83.31%) than 89.13% 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
APP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
APP has an Altman-Z score of 31.44. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 31.44, APP belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
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 74.64% of the companies in the same industry.
APP has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.38, APP is not doing good in the industry: 82.97% of the companies in the same industry are doing better.
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 | 31.44 |
ROIC/WACC4.73
WACC11.09%
2.3 Liquidity
A Current Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
The Current ratio of APP (3.25) is better than 77.54% 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.
Looking at the Quick ratio, with a value of 3.25, APP is in the better half of the industry, outperforming 77.54% of the companies in the same industry.
| 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
The Revenue has grown by 40.81% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 44.45% 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 27.30% yearly.
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 5Y27.3%
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.
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 70.34, 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's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 41.92, APP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.23. APP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.34 | ||
| Fwd PE | 41.92 |
4.2 Price Multiples
APP's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 61.5 | ||
| EV/EBITDA | 60.62 |
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.
A more expensive valuation may be justified as APP's earnings are expected to grow with 62.05% in the coming years.
PEG (NY)0.65
PEG (5Y)0.83
EPS Next 2Y80.26%
EPS Next 3Y62.05%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
618.32
-55.5 (-8.24%)
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-0.4%
Market Cap208.96B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target740.59 (19.77%)
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)3.44%
PT rev (3m)41.33%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)6.35%
EPS NY rev (1m)3.74%
EPS NY rev (3m)5.5%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.34 | ||
| Fwd PE | 41.92 | ||
| P/S | 37.85 | ||
| P/FCF | 61.5 | ||
| P/OCF | 61.41 | ||
| P/B | 141.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.62 |
EPS(TTM)8.79
EY1.42%
EPS(NY)14.75
Fwd EY2.39%
FCF(TTM)10.05
FCFY1.63%
OCF(TTM)10.07
OCFY1.63%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.65
PEG (5Y)0.83
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 | 31.44 |
F-Score9
WACC11.09%
ROIC/WACC4.73
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 5Y27.3%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.56%
EBIT Next 3Y65.28%
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
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.