APPLOVIN CORP-CLASS A (1APP.MI) Stock Fundamental Analysis
BIT:1APP - Euronext Milan - US03831W1080 - Common Stock - Currency: EUR
1APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 107 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1APP a very profitable company, without any liquidiy or solvency issues. 1APP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, 1APP could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
1APP had positive earnings in the past year.
In the past year 1APP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1APP reported negative net income in multiple years.
Each year in the past 5 years 1APP had a positive operating cash flow.
1.2 Ratios
1APP's Return On Assets of 40.75% is amongst the best of the industry. 1APP outperforms 100.00% of its industry peers.
1APP has a Return On Equity of 208.08%. This is amongst the best in the industry. 1APP outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 45.52%, 1APP belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1APP is in line with the industry average of 12.42%.
The last Return On Invested Capital (45.52%) for 1APP is above the 3 year average (13.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 40.75% | ||
| ROE | 208.08% | ||
| ROIC | 45.52% |
ROA(3y)10.07%
ROA(5y)4.98%
ROE(3y)54.28%
ROE(5y)N/A
ROIC(3y)13.77%
ROIC(5y)8.87%
1.3 Margins
1APP has a Profit Margin of 45.70%. This is amongst the best in the industry. 1APP outperforms 96.26% of its industry peers.
In the last couple of years the Profit Margin of 1APP has grown nicely.
1APP has a better Operating Margin (55.57%) than 99.07% of its industry peers.
1APP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.87%, 1APP is in the better half of the industry, outperforming 75.70% of the companies in the same industry.
In the last couple of years the Gross Margin of 1APP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.57% | ||
| PM (TTM) | 45.7% | ||
| GM | 80.87% |
OM growth 3Y94.94%
OM growth 5Y15.26%
PM growth 3Y209.01%
PM growth 5Y34.23%
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), 1APP is creating value.
1APP has about the same amout of shares outstanding than it did 1 year ago.
1APP has less shares outstanding than it did 5 years ago.
1APP has a better debt/assets ratio than last year.
2.2 Solvency
1APP has an Altman-Z score of 22.93. This indicates that 1APP is financially healthy and has little risk of bankruptcy at the moment.
1APP's Altman-Z score of 22.93 is amongst the best of the industry. 1APP outperforms 96.26% of its industry peers.
The Debt to FCF ratio of 1APP is 1.21, which is an excellent value as it means it would take 1APP, only 1.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1APP (1.21) is better than 75.70% of its industry peers.
1APP has a Debt/Equity ratio of 3.01. This is a high value indicating a heavy dependency on external financing.
1APP has a worse Debt to Equity ratio (3.01) than 80.37% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1APP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.01 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 22.93 |
ROIC/WACC4
WACC11.37%
2.3 Liquidity
1APP has a Current Ratio of 2.74. This indicates that 1APP is financially healthy and has no problem in meeting its short term obligations.
1APP has a better Current ratio (2.74) than 84.11% of its industry peers.
A Quick Ratio of 2.74 indicates that 1APP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.74, 1APP belongs to the top of the industry, outperforming 84.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 222.98% over the past year.
Measured over the past years, 1APP shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.87% on average per year.
The Revenue has grown by 34.33% in the past year. This is a very strong growth!
Measured over the past years, 1APP shows a very strong growth in Revenue. The Revenue has been growing by 36.49% on average per year.
EPS 1Y (TTM)222.98%
EPS 3Y269.34%
EPS 5Y84.87%
EPS Q2Q%168.54%
Revenue 1Y (TTM)34.33%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%16.54%
3.2 Future
1APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.97% yearly.
Based on estimates for the next years, 1APP will show a very strong growth in Revenue. The Revenue will grow by 23.97% on average per year.
EPS Next Y80.13%
EPS Next 2Y61.24%
EPS Next 3Y46.07%
EPS Next 5Y31.97%
Revenue Next Year21.34%
Revenue Next 2Y21.42%
Revenue Next 3Y22.2%
Revenue Next 5Y23.97%
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
The Price/Earnings ratio is 61.77, which means the current valuation is very expensive for 1APP.
The rest of the industry has a similar Price/Earnings ratio as 1APP.
Compared to an average S&P500 Price/Earnings ratio of 26.82, 1APP is valued quite expensively.
The Price/Forward Earnings ratio is 39.71, which means the current valuation is very expensive for 1APP.
1APP's Price/Forward Earnings ratio is in line with the industry average.
1APP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.77 | ||
| Fwd PE | 39.71 |
4.2 Price Multiples
1APP'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 1APP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.75 | ||
| EV/EBITDA | 48.63 |
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 1APP may justify a higher PE ratio.
A more expensive valuation may be justified as 1APP's earnings are expected to grow with 46.07% in the coming years.
PEG (NY)0.77
PEG (5Y)0.73
EPS Next 2Y61.24%
EPS Next 3Y46.07%
5. Dividend
5.1 Amount
1APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1APP (8/11/2025, 7:00:00 PM)
401.5
+10.6 (+2.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.15%
Inst Owner ChangeN/A
Ins Owners4.87%
Ins Owner ChangeN/A
Market Cap135.81B
Analysts81.33
Price TargetN/A
Short Float %N/A
Short RatioN/A
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)34.04%
Min EPS beat(2)16.63%
Max EPS beat(2)51.45%
EPS beat(4)4
Avg EPS beat(4)35.03%
Min EPS beat(4)16.63%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)27.58%
EPS beat(12)9
Avg EPS beat(12)-18.56%
EPS beat(16)9
Avg EPS beat(16)-67.65%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)6.23%
Revenue beat(4)3
Avg Revenue beat(4)4.19%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)7.5%
Revenue beat(8)6
Avg Revenue beat(8)4.01%
Revenue beat(12)9
Avg Revenue beat(12)2.88%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)3.9%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.24%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.49%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.77 | ||
| Fwd PE | 39.71 | ||
| P/S | 29.83 | ||
| P/FCF | 54.75 | ||
| P/OCF | 54.66 | ||
| P/B | 135.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.63 |
EPS(TTM)6.5
EY1.62%
EPS(NY)10.11
Fwd EY2.52%
FCF(TTM)7.33
FCFY1.83%
OCF(TTM)7.34
OCFY1.83%
SpS13.46
BVpS2.96
TBVpS-2.08
PEG (NY)0.77
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 40.75% | ||
| ROE | 208.08% | ||
| ROCE | 60.69% | ||
| ROIC | 45.52% | ||
| ROICexc | 60.3% | ||
| ROICexgc | 131.4% | ||
| OM | 55.57% | ||
| PM (TTM) | 45.7% | ||
| GM | 80.87% | ||
| FCFM | 54.49% |
ROA(3y)10.07%
ROA(5y)4.98%
ROE(3y)54.28%
ROE(5y)N/A
ROIC(3y)13.77%
ROIC(5y)8.87%
ROICexc(3y)16.11%
ROICexc(5y)10.47%
ROICexgc(3y)57.53%
ROICexgc(5y)N/A
ROCE(3y)18.38%
ROCE(5y)11.84%
ROICexcg growth 3Y130.56%
ROICexcg growth 5YN/A
ROICexc growth 3Y131.06%
ROICexc growth 5Y6.08%
OM growth 3Y94.94%
OM growth 5Y15.26%
PM growth 3Y209.01%
PM growth 5Y34.23%
GM growth 3Y5.19%
GM growth 5Y-0.13%
F-Score9
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.01 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 13.11 | ||
| Cash Conversion | 87.68% | ||
| Profit Quality | 119.22% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 22.93 |
F-Score9
WACC11.37%
ROIC/WACC4
Cap/Depr(3y)1.05%
Cap/Depr(5y)1.13%
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)222.98%
EPS 3Y269.34%
EPS 5Y84.87%
EPS Q2Q%168.54%
EPS Next Y80.13%
EPS Next 2Y61.24%
EPS Next 3Y46.07%
EPS Next 5Y31.97%
Revenue 1Y (TTM)34.33%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%16.54%
Revenue Next Year21.34%
Revenue Next 2Y21.42%
Revenue Next 3Y22.2%
Revenue Next 5Y23.97%
EBIT growth 1Y148.91%
EBIT growth 3Y132.02%
EBIT growth 5Y57.32%
EBIT Next Year127.57%
EBIT Next 3Y54.45%
EBIT Next 5Y40.96%
FCF growth 1Y242.92%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y238.73%
OCF growth 3Y79.67%
OCF growth 5Y60.27%