APPLOVIN CORP-CLASS A (1APP.MI) Stock Fundamental Analysis
Europe - BIT:1APP - US03831W1080 - Common Stock
488.5 EUR
+21.15 (+4.53%)
We assign a fundamental rating of 7 out of 10 to 1APP. 1APP was compared to 103 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make 1APP a good candidate 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
With an excellent Return On Assets value of 40.75%, 1APP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 208.08%, 1APP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 45.52%, 1APP belongs to the top of the industry, outperforming 99.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1APP is in line with the industry average of 12.80%.
The 3 year average ROIC (13.77%) for 1APP is below the current ROIC(45.52%), indicating increased profibility in the last year.
| 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's Profit Margin of 45.70% is amongst the best of the industry. 1APP outperforms 96.12% of its industry peers.
1APP's Profit Margin has improved in the last couple of years.
1APP's Operating Margin of 55.57% is amongst the best of the industry. 1APP outperforms 98.06% of its industry peers.
1APP's Operating Margin has improved in the last couple of years.
1APP has a better Gross Margin (80.87%) than 71.84% 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 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
1APP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1APP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1APP has less shares outstanding
1APP has a better debt/assets ratio than last year.
2.2 Solvency
1APP has an Altman-Z score of 27.32. This indicates that 1APP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 27.32, 1APP belongs to the best of the industry, outperforming 95.15% of the companies in the same industry.
1APP has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.21, 1APP is doing good in the industry, outperforming 76.70% of the companies in the same industry.
A Debt/Equity ratio of 3.01 is on the high side and indicates that 1APP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.01, 1APP is doing worse than 84.47% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.01 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 27.32 |
ROIC/WACC4.14
WACC11%
2.3 Liquidity
A Current Ratio of 2.74 indicates that 1APP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.74, 1APP belongs to the best of the industry, outperforming 84.47% of the companies in the same industry.
1APP has a Quick Ratio of 2.74. This indicates that 1APP is financially healthy and has no problem in meeting its short term obligations.
1APP's Quick ratio of 2.74 is amongst the best of the industry. 1APP outperforms 84.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
1APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.98%, which is quite impressive.
1APP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.87% yearly.
1APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.33%.
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
Based on estimates for the next years, 1APP will show a very strong growth in Earnings Per Share. The EPS will grow by 31.97% on average per year.
1APP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.97% yearly.
EPS Next Y92.88%
EPS Next 2Y72.21%
EPS Next 3Y54.04%
EPS Next 5Y31.97%
Revenue Next Year21.4%
Revenue Next 2Y25.77%
Revenue Next 3Y25.22%
Revenue Next 5Y23.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 75.39, 1APP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 1APP.
1APP is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 42.52 indicates a quite expensive valuation of 1APP.
1APP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. 1APP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.39 | ||
| Fwd PE | 42.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1APP indicates a slightly more expensive valuation: 1APP is more expensive than 63.11% of the companies listed in the same industry.
1APP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.88 | ||
| EV/EBITDA | 59.24 |
4.3 Compensation for Growth
1APP's 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.
1APP's earnings are expected to grow with 54.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)0.89
EPS Next 2Y72.21%
EPS Next 3Y54.04%
5. Dividend
5.1 Amount
1APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1APP (9/11/2025, 7:00:00 PM)
488.5
+21.15 (+4.53%)
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 Cap165.24B
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)6.39%
EPS NQ rev (3m)33.07%
EPS NY rev (1m)7.07%
EPS NY rev (3m)25.17%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.39 | ||
| Fwd PE | 42.52 | ||
| P/S | 36.44 | ||
| P/FCF | 66.88 | ||
| P/OCF | 66.77 | ||
| P/B | 165.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 59.24 |
EPS(TTM)6.48
EY1.33%
EPS(NY)11.49
Fwd EY2.35%
FCF(TTM)7.3
FCFY1.5%
OCF(TTM)7.32
OCFY1.5%
SpS13.41
BVpS2.94
TBVpS-2.07
PEG (NY)0.81
PEG (5Y)0.89
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 | 27.32 |
F-Score9
WACC11%
ROIC/WACC4.14
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 Y92.88%
EPS Next 2Y72.21%
EPS Next 3Y54.04%
EPS Next 5Y31.97%
Revenue 1Y (TTM)34.33%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%16.54%
Revenue Next Year21.4%
Revenue Next 2Y25.77%
Revenue Next 3Y25.22%
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%