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APPLOVIN CORP-CLASS A (1APP.MI) Stock Fundamental Analysis

BIT:1APP - Euronext Milan - US03831W1080 - Common Stock - Currency: EUR

323.85  +323.85 (+Infinity%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to 1APP. 1APP was compared to 101 industry peers in the Software industry. 1APP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1APP is not overvalued while it is showing excellent growth. This is an interesting combination. This makes 1APP very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year 1APP was profitable.
1APP had a positive operating cash flow in the past year.
In multiple years 1APP reported negative net income over the last 5 years.
In the past 5 years 1APP always reported a positive cash flow from operatings.
1APP.MI Yearly Net Income VS EBIT VS OCF VS FCF1APP.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 33.63%, 1APP belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
1APP has a better Return On Equity (333.52%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 41.65%, 1APP belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
1APP had an Average Return On Invested Capital over the past 3 years of 13.77%. This is above the industry average of 10.99%.
The last Return On Invested Capital (41.65%) for 1APP is above the 3 year average (13.77%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 33.63%
ROE 333.52%
ROIC 41.65%
ROA(3y)10.07%
ROA(5y)4.98%
ROE(3y)54.28%
ROE(5y)N/A
ROIC(3y)13.77%
ROIC(5y)8.87%
1APP.MI Yearly ROA, ROE, ROIC1APP.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 50 100

1.3 Margins

1APP's Profit Margin of 37.37% is amongst the best of the industry. 1APP outperforms 98.02% of its industry peers.
In the last couple of years the Profit Margin of 1APP has grown nicely.
The Operating Margin of 1APP (46.47%) is better than 98.02% of its industry peers.
1APP's Operating Margin has improved in the last couple of years.
1APP has a better Gross Margin (77.72%) than 66.34% of its industry peers.
In the last couple of years the Gross Margin of 1APP has remained more or less at the same level.
Industry RankSector Rank
OM 46.47%
PM (TTM) 37.37%
GM 77.72%
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%
1APP.MI Yearly Profit, Operating, Gross Margins1APP.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1APP is creating value.
Compared to 1 year ago, 1APP has about the same amount of shares outstanding.
1APP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1APP has an improved debt to assets ratio.
1APP.MI Yearly Shares Outstanding1APP.MI Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
1APP.MI Yearly Total Debt VS Total Assets1APP.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

An Altman-Z score of 16.98 indicates that 1APP is not in any danger for bankruptcy at the moment.
1APP has a better Altman-Z score (16.98) than 97.03% of its industry peers.
The Debt to FCF ratio of 1APP is 1.46, which is an excellent value as it means it would take 1APP, only 1.46 years of fcf income to pay off all of its debts.
1APP has a better Debt to FCF ratio (1.46) than 77.23% of its industry peers.
A Debt/Equity ratio of 6.10 is on the high side and indicates that 1APP has dependencies on debt financing.
With a Debt to Equity ratio value of 6.10, 1APP is not doing good in the industry: 84.16% of the companies in the same industry are doing better.
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 RankSector Rank
Debt/Equity 6.1
Debt/FCF 1.46
Altman-Z 16.98
ROIC/WACC3.8
WACC10.97%
1APP.MI Yearly LT Debt VS Equity VS FCF1APP.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

1APP has a Current Ratio of 1.68. This is a normal value and indicates that 1APP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.68, 1APP is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
1APP has a Quick Ratio of 1.68. This is a normal value and indicates that 1APP is financially healthy and should not expect problems in meeting its short term obligations.
1APP has a better Quick ratio (1.68) than 71.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.68
Quick Ratio 1.68
1APP.MI Yearly Current Assets VS Current Liabilites1APP.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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9

3. Growth

3.1 Past

1APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 262.50%, which is quite impressive.
The Earnings Per Share has been growing by 84.87% on average over the past years. This is a very strong growth
The Revenue has grown by 41.63% 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)262.5%
EPS 3Y269.34%
EPS 5Y84.87%
EPS Q2Q%231.34%
Revenue 1Y (TTM)41.63%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%40.25%

3.2 Future

Based on estimates for the next years, 1APP will show a very strong growth in Earnings Per Share. The EPS will grow by 27.00% on average per year.
The Revenue is expected to grow by 18.31% on average over the next years. This is quite good.
EPS Next Y54.09%
EPS Next 2Y55.53%
EPS Next 3Y45.51%
EPS Next 5Y27%
Revenue Next Year26.68%
Revenue Next 2Y24.17%
Revenue Next 3Y24.44%
Revenue Next 5Y18.31%

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
1APP.MI Yearly Revenue VS Estimates1APP.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
1APP.MI Yearly EPS VS Estimates1APP.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 10

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 59.97, the valuation of 1APP can be described as expensive.
1APP's Price/Earnings ratio is in line with the industry average.
1APP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.25.
1APP is valuated quite expensively with a Price/Forward Earnings ratio of 33.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1APP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1APP to the average of the S&P500 Index (22.15), we can say 1APP is valued expensively.
Industry RankSector Rank
PE 59.97
Fwd PE 33.27
1APP.MI Price Earnings VS Forward Price Earnings1APP.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1APP is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1APP.
Industry RankSector Rank
P/FCF 48.8
EV/EBITDA 45.24
1APP.MI Per share data1APP.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

1APP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1APP may justify a higher PE ratio.
1APP's earnings are expected to grow with 45.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)0.71
EPS Next 2Y55.53%
EPS Next 3Y45.51%

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0

5. Dividend

5.1 Amount

1APP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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APPLOVIN CORP-CLASS A

BIT:1APP (5/19/2025, 7:00:00 PM)

323.85

+323.85 (+Infinity%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners69.77%
Inst Owner ChangeN/A
Ins Owners4.11%
Ins Owner ChangeN/A
Market Cap109.59B
Analysts81.29
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.78%
Min EPS beat(2)38.1%
Max EPS beat(2)51.45%
EPS beat(4)4
Avg EPS beat(4)35.11%
Min EPS beat(4)16.95%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)51.1%
EPS beat(12)8
Avg EPS beat(12)-30.98%
EPS beat(16)8
Avg EPS beat(16)-70.07%
Revenue beat(2)2
Avg Revenue beat(2)6.86%
Min Revenue beat(2)6.23%
Max Revenue beat(2)7.5%
Revenue beat(4)3
Avg Revenue beat(4)4.37%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)7.5%
Revenue beat(8)7
Avg Revenue beat(8)4.56%
Revenue beat(12)9
Avg Revenue beat(12)2.5%
Revenue beat(16)12
Avg Revenue beat(16)1.21%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 59.97
Fwd PE 33.27
P/S 24.07
P/FCF 48.8
P/OCF 48.71
P/B 214.84
P/tB N/A
EV/EBITDA 45.24
EPS(TTM)5.4
EY1.67%
EPS(NY)9.74
Fwd EY3.01%
FCF(TTM)6.64
FCFY2.05%
OCF(TTM)6.65
OCFY2.05%
SpS13.45
BVpS1.51
TBVpS-5.03
PEG (NY)1.11
PEG (5Y)0.71
Profitability
Industry RankSector Rank
ROA 33.63%
ROE 333.52%
ROCE 55.53%
ROIC 41.65%
ROICexc 47.77%
ROICexgc 143%
OM 46.47%
PM (TTM) 37.37%
GM 77.72%
FCFM 49.33%
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-Score8
Asset Turnover0.9
Health
Industry RankSector Rank
Debt/Equity 6.1
Debt/FCF 1.46
Debt/EBITDA 1.25
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 11.82
Cash Conversion 90.57%
Profit Quality 132%
Current Ratio 1.68
Quick Ratio 1.68
Altman-Z 16.98
F-Score8
WACC10.97%
ROIC/WACC3.8
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)262.5%
EPS 3Y269.34%
EPS 5Y84.87%
EPS Q2Q%231.34%
EPS Next Y54.09%
EPS Next 2Y55.53%
EPS Next 3Y45.51%
EPS Next 5Y27%
Revenue 1Y (TTM)41.63%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%40.25%
Revenue Next Year26.68%
Revenue Next 2Y24.17%
Revenue Next 3Y24.44%
Revenue Next 5Y18.31%
EBIT growth 1Y157.5%
EBIT growth 3Y132.02%
EBIT growth 5Y57.32%
EBIT Next Year123.13%
EBIT Next 3Y53.38%
EBIT Next 5Y43.84%
FCF growth 1Y248.78%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y246.17%
OCF growth 3Y79.67%
OCF growth 5Y60.27%