APPLOVIN CORP-CLASS A (1APP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1APP - US03831W1080 - Common Stock
463.9 EUR
-21.4 (-4.41%)
1APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. 1APP gets an excellent profitability rating and is at the same time showing great financial health properties. 1APP is not priced too expensively while it is growing strongly. 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.
- In multiple years 1APP reported negative net income over the last 5 years.
- Each year in the past 5 years 1APP had a positive operating cash flow.
1.2 Ratios
- 1APP has a Return On Assets of 44.61%. This is amongst the best in the industry. 1APP outperforms 99.12% of its industry peers.
- With an excellent Return On Equity value of 191.99%, 1APP belongs to the best of the industry, outperforming 99.12% of the companies in the same industry.
- 1APP has a better Return On Invested Capital (49.77%) than 99.12% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1APP is in line with the industry average of 13.49%.
- The last Return On Invested Capital (49.77%) for 1APP is above the 3 year average (13.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 44.61% | ||
| ROE | 191.99% | ||
| ROIC | 49.77% |
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 51.26%. This is amongst the best in the industry. 1APP outperforms 96.49% of its industry peers.
- In the last couple of years the Profit Margin of 1APP has grown nicely.
- 1APP has a Operating Margin of 63.35%. This is amongst the best in the industry. 1APP outperforms 99.12% of its industry peers.
- 1APP's Operating Margin has improved in the last couple of years.
- 1APP has a better Gross Margin (83.31%) than 74.56% of its industry peers.
- 1APP'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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1APP is creating value.
- Compared to 1 year ago, 1APP has about the same amount of shares outstanding.
- The number of shares outstanding for 1APP has been reduced compared to 5 years ago.
- 1APP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 26.42 indicates that 1APP is not in any danger for bankruptcy at the moment.
- 1APP's Altman-Z score of 26.42 is amongst the best of the industry. 1APP outperforms 97.37% of its industry peers.
- 1APP 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.
- With a decent Debt to FCF ratio value of 1.03, 1APP is doing good in the industry, outperforming 78.07% of the companies in the same industry.
- 1APP 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, 1APP is not doing good in the industry: 86.84% of the companies in the same industry are doing better.
- Although 1APP 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 | 26.42 |
ROIC/WACC4.49
WACC11.08%
2.3 Liquidity
- A Current Ratio of 3.25 indicates that 1APP has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.25, 1APP belongs to the best of the industry, outperforming 85.09% of the companies in the same industry.
- A Quick Ratio of 3.25 indicates that 1APP has no problem at all paying its short term obligations.
- The Quick ratio of 1APP (3.25) is better than 85.09% 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.
- 1APP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.83% yearly.
- 1APP shows a strong growth in Revenue. In the last year, 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
- Based on estimates for the next years, 1APP 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, 1APP will show a very strong growth in Revenue. The Revenue will grow by 27.22% on average per year.
EPS Next Y107.83%
EPS Next 2Y80.05%
EPS Next 3Y62.52%
EPS Next 5Y44.45%
Revenue Next Year24.01%
Revenue Next 2Y30.35%
Revenue Next 3Y29.22%
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
- Based on the Price/Earnings ratio of 62.94, the valuation of 1APP can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as 1APP.
- When comparing the Price/Earnings ratio of 1APP to the average of the S&P500 Index (28.82), we can say 1APP is valued expensively.
- With a Price/Forward Earnings ratio of 37.60, 1APP can be considered very expensive at the moment.
- 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 (25.95), we can say 1APP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.94 | ||
| Fwd PE | 37.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1APP is valued a bit more expensive than 60.53% of the companies in the same industry.
- 1APP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.04 | ||
| EV/EBITDA | 49.87 |
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.
- 1APP has an outstanding profitability rating, which may justify a higher PE ratio.
- 1APP's earnings are expected to grow with 62.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.74
EPS Next 2Y80.05%
EPS Next 3Y62.52%
5. Dividend
5.1 Amount
- No dividends for 1APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
APPLOVIN CORP-CLASS A / 1APP.MI FAQ
What is the fundamental rating for 1APP stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1APP.MI.
What is the valuation status of APPLOVIN CORP-CLASS A (1APP.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLOVIN CORP-CLASS A (1APP.MI). This can be considered as Fairly Valued.
How profitable is APPLOVIN CORP-CLASS A (1APP.MI) stock?
APPLOVIN CORP-CLASS A (1APP.MI) has a profitability rating of 8 / 10.
What is the valuation of APPLOVIN CORP-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLOVIN CORP-CLASS A (1APP.MI) is 62.94 and the Price/Book (PB) ratio is 126.88.
What is the expected EPS growth for APPLOVIN CORP-CLASS A (1APP.MI) stock?
The Earnings per Share (EPS) of APPLOVIN CORP-CLASS A (1APP.MI) is expected to grow by 107.83% in the next year.