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

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

308.4  +24.6 (+8.67%)

Fundamental Rating

7

Taking everything into account, 1APP scores 7 out of 10 in our fundamental rating. 1APP was compared to 104 industry peers in the Software industry. 1APP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1APP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make 1APP suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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 99.04% of the companies in the same industry.
1APP's Return On Equity of 333.52% is amongst the best of the industry. 1APP outperforms 100.00% of its industry peers.
1APP's Return On Invested Capital of 41.65% is amongst the best of the industry. 1APP outperforms 99.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1APP is above the industry average of 11.38%.
The 3 year average ROIC (13.77%) for 1APP is below the current ROIC(41.65%), indicating increased profibility in the last year.
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 has a Profit Margin of 37.37%. This is amongst the best in the industry. 1APP outperforms 98.08% of its industry peers.
In the last couple of years the Profit Margin of 1APP has grown nicely.
1APP has a Operating Margin of 46.47%. This is amongst the best in the industry. 1APP outperforms 100.00% 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 77.72%, 1APP is in the better half of the industry, outperforming 66.35% 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 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

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1APP is creating value.
The number of shares outstanding for 1APP remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1APP has been reduced compared to 5 years ago.
The debt/assets ratio for 1APP has been reduced compared to a year ago.
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 16.74 indicates that 1APP is not in any danger for bankruptcy at the moment.
1APP has a better Altman-Z score (16.74) than 95.19% of its industry peers.
1APP has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
The Debt to FCF ratio of 1APP (1.46) is better than 75.00% of its industry peers.
1APP has a Debt/Equity ratio of 6.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.10, 1APP is doing worse than 84.62% of the companies in the same industry.
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 16.74
ROIC/WACC3.63
WACC11.48%
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

A Current Ratio of 1.68 indicates that 1APP should not have too much problems paying its short term obligations.
The Current ratio of 1APP (1.68) is better than 65.38% of its industry peers.
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 66.35% 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

9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 262.50% over the past year.
1APP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.87% yearly.
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

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 24.93% on average per year.
EPS Next Y80.57%
EPS Next 2Y61.57%
EPS Next 3Y45.72%
EPS Next 5Y31.97%
Revenue Next Year23.17%
Revenue Next 2Y22.27%
Revenue Next 3Y22.83%
Revenue Next 5Y24.93%

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.
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 2031 2032 5B 10B 15B 20B 25B
1APP.MI Yearly EPS VS Estimates1APP.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 10 20 30

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 58.97, the valuation of 1APP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1APP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.93, 1APP is valued quite expensively.
With a Price/Forward Earnings ratio of 30.32, 1APP can be considered very expensive at the moment.
1APP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1APP is cheaper than 62.50% of the companies in the same industry.
1APP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 58.97
Fwd PE 30.32
1APP.MI Price Earnings VS Forward Price Earnings1APP.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1APP.
1APP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1APP is cheaper than 63.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48.01
EV/EBITDA 44.53
1APP.MI Per share data1APP.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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.
A more expensive valuation may be justified as 1APP's earnings are expected to grow with 45.72% in the coming years.
PEG (NY)0.73
PEG (5Y)0.69
EPS Next 2Y61.57%
EPS Next 3Y45.72%

0

5. Dividend

5.1 Amount

No dividends for 1APP!.
Industry RankSector Rank
Dividend Yield N/A

APPLOVIN CORP-CLASS A

BIT:1APP (7/23/2025, 7:00:00 PM)

308.4

+24.6 (+8.67%)

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 Owners72.87%
Inst Owner ChangeN/A
Ins Owners4.87%
Ins Owner ChangeN/A
Market Cap104.36B
Analysts81.33
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 Years0
Div Non Decr Years0
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)37%
EPS NQ rev (3m)N/A
EPS NY rev (1m)17.19%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-6.77%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.77%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 58.97
Fwd PE 30.32
P/S 23.68
P/FCF 48.01
P/OCF 47.92
P/B 211.36
P/tB N/A
EV/EBITDA 44.53
EPS(TTM)5.23
EY1.7%
EPS(NY)10.17
Fwd EY3.3%
FCF(TTM)6.42
FCFY2.08%
OCF(TTM)6.44
OCFY2.09%
SpS13.02
BVpS1.46
TBVpS-4.87
PEG (NY)0.73
PEG (5Y)0.69
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 16.74
F-Score8
WACC11.48%
ROIC/WACC3.63
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 Y80.57%
EPS Next 2Y61.57%
EPS Next 3Y45.72%
EPS Next 5Y31.97%
Revenue 1Y (TTM)41.63%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%40.25%
Revenue Next Year23.17%
Revenue Next 2Y22.27%
Revenue Next 3Y22.83%
Revenue Next 5Y24.93%
EBIT growth 1Y157.5%
EBIT growth 3Y132.02%
EBIT growth 5Y57.32%
EBIT Next Year123.13%
EBIT Next 3Y53.38%
EBIT Next 5Y39.49%
FCF growth 1Y248.78%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y246.17%
OCF growth 3Y79.67%
OCF growth 5Y60.27%