727.5 USD
-0.95 (-0.13%)
726 USD
-1.5 (-0.21%)
Overall APP gets a fundamental rating of 7 out of 10. We evaluated APP against 278 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.
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's Return On Assets of 44.61% is amongst the best of the industry. APP outperforms 98.92% 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 has a better Return On Invested Capital (52.42%) than 98.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APP 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
The Profit Margin of APP (51.26%) is better than 94.60% 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 97.84% 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 89.21% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APP is creating value.
The number of shares outstanding for APP remains at a similar level compared to 1 year ago.
The number of shares outstanding for APP has been reduced compared to 5 years ago.
Compared to 1 year ago, APP has an improved debt to assets ratio.
2.2 Solvency
APP has an Altman-Z score of 33.71. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
APP has a Altman-Z score of 33.71. This is amongst the best in the industry. APP outperforms 96.40% 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.
Looking at the Debt to FCF ratio, with a value of 1.03, APP is in the better half of the industry, outperforming 74.46% 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.
The Debt to Equity ratio of APP (2.38) is worse than 83.09% 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 | 33.71 |
ROIC/WACC4.74
WACC11.05%
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.
APP has a Current ratio of 3.25. This is in the better half of the industry: APP outperforms 77.70% of its industry peers.
A Quick Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
The Quick ratio of APP (3.25) is better than 77.70% of its industry peers.
| 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!
APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.49% yearly.
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
Based on estimates for the next years, APP will show a very strong growth in Earnings Per Share. The EPS will grow by 44.45% on average per year.
Based on estimates for the next years, APP will show a very strong growth in Revenue. The Revenue will grow by 27.30% on average per year.
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
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
APP is valuated quite expensively with a Price/Earnings ratio of 82.76.
APP's Price/Earnings ratio is in line with the industry average.
APP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
APP is valuated quite expensively with a Price/Forward Earnings ratio of 49.32.
APP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. APP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.76 | ||
| Fwd PE | 49.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as APP.
APP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.35 | ||
| EV/EBITDA | 65.49 |
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.
The excellent profitability rating of APP may justify a higher PE ratio.
APP's earnings are expected to grow with 62.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)0.98
EPS Next 2Y80.25%
EPS Next 3Y62.15%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
727.5
-0.95 (-0.13%)
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 Cap245.86B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target735.09 (1.04%)
Short Float %5.95%
Short Ratio3.17
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)10.23%
PT rev (3m)40.28%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)6.35%
EPS NY rev (1m)4.15%
EPS NY rev (3m)8.03%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.76 | ||
| Fwd PE | 49.32 | ||
| P/S | 44.53 | ||
| P/FCF | 72.35 | ||
| P/OCF | 72.25 | ||
| P/B | 166.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 65.49 |
EPS(TTM)8.79
EY1.21%
EPS(NY)14.75
Fwd EY2.03%
FCF(TTM)10.05
FCFY1.38%
OCF(TTM)10.07
OCFY1.38%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.76
PEG (5Y)0.98
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 | 33.71 |
F-Score9
WACC11.05%
ROIC/WACC4.74
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 82.76 and the Price/Book (PB) ratio is 166.81.
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.