APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis
USA - NASDAQ:APP - US03831W1080 - Common Stock
582 USD
+10.69 (+1.87%)
582.9 USD
+0.9 (+0.15%)
Taking everything into account, APP scores 7 out of 10 in our fundamental rating. APP was compared to 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making APP a very profitable company, without any liquidiy or solvency issues. APP is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes APP very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
APP had positive earnings in the past year.
In the past year APP had a positive cash flow from operations.
In multiple years APP reported negative net income over the last 5 years.
APP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 40.75%, APP belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
APP has a better Return On Equity (208.08%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 47.95%, APP belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for APP is above the industry average of 11.95%.
The last Return On Invested Capital (47.95%) for APP is above the 3 year average (14.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 40.75% | ||
| ROE | 208.08% | ||
| ROIC | 47.95% |
ROA(3y)10.07%
ROA(5y)4.98%
ROE(3y)54.28%
ROE(5y)N/A
ROIC(3y)14.51%
ROIC(5y)9.34%
1.3 Margins
With an excellent Profit Margin value of 45.70%, APP belongs to the best of the industry, outperforming 93.93% of the companies in the same industry.
In the last couple of years the Profit Margin of APP has grown nicely.
APP has a Operating Margin of 55.57%. This is amongst the best in the industry. APP outperforms 97.50% of its industry peers.
APP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.87%, APP belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
APP's Gross Margin has been stable in the last couple of years.
| 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), APP is creating value.
Compared to 1 year ago, APP has about the same amount of shares outstanding.
The number of shares outstanding for APP has been reduced compared to 5 years ago.
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
APP has an Altman-Z score of 27.27. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 27.27, APP belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
APP 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, APP is doing good in the industry, outperforming 73.21% of the companies in the same industry.
APP has a Debt/Equity ratio of 3.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APP (3.01) is worse than 82.86% of its industry peers.
Even though the debt/equity ratio score it not favorable for APP, 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 | 27.27 |
ROIC/WACC4.29
WACC11.18%
2.3 Liquidity
APP has a Current Ratio of 2.74. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.74, APP is doing good in the industry, outperforming 75.36% of the companies in the same industry.
A Quick Ratio of 2.74 indicates that APP has no problem at all paying its short term obligations.
The Quick ratio of APP (2.74) is better than 76.07% of its industry peers.
| 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, APP 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, APP 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
APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.97% yearly.
APP 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 Year21.32%
Revenue Next 2Y25.64%
Revenue Next 3Y25.17%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 76.68, APP can be considered very expensive at the moment.
APP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. APP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 43.23, the valuation of APP can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
APP is valuated expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.68 | ||
| Fwd PE | 43.23 |
4.2 Price Multiples
APP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APP is cheaper than 61.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.99 | ||
| EV/EBITDA | 59.13 |
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 APP may justify a higher PE ratio.
APP's earnings are expected to grow with 54.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)0.9
EPS Next 2Y72.21%
EPS Next 3Y54.04%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
582
+10.69 (+1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.15%
Inst Owner Change-7.53%
Ins Owners4.87%
Ins Owner Change-0.54%
Market Cap196.86B
Analysts81.33
Price Target516.23 (-11.3%)
Short Float %4.88%
Short Ratio2.07
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)5.17%
PT rev (3m)7.17%
EPS NQ rev (1m)7.52%
EPS NQ rev (3m)33.07%
EPS NY rev (1m)7.07%
EPS NY rev (3m)25.17%
Revenue NQ rev (1m)1.73%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.68 | ||
| Fwd PE | 43.23 | ||
| P/S | 37.05 | ||
| P/FCF | 67.99 | ||
| P/OCF | 67.88 | ||
| P/B | 168.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 59.13 |
EPS(TTM)7.59
EY1.3%
EPS(NY)13.46
Fwd EY2.31%
FCF(TTM)8.56
FCFY1.47%
OCF(TTM)8.57
OCFY1.47%
SpS15.71
BVpS3.45
TBVpS-2.43
PEG (NY)0.83
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 40.75% | ||
| ROE | 208.08% | ||
| ROCE | 60.69% | ||
| ROIC | 47.95% | ||
| ROICexc | 63.51% | ||
| ROICexgc | 138.41% | ||
| 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)14.51%
ROIC(5y)9.34%
ROICexc(3y)16.97%
ROICexc(5y)11.03%
ROICexgc(3y)60.6%
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 | 27.27 |
F-Score9
WACC11.18%
ROIC/WACC4.29
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 Year21.32%
Revenue Next 2Y25.64%
Revenue Next 3Y25.17%
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%