APPLOVIN CORP-CLASS A (APP)
US03831W1080 - Common Stock
Overall APP gets a fundamental rating of 6 out of 10. We evaluated APP against 284 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make APP a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year APP was profitable.
APP had a positive operating cash flow in the past year.
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
APP's Return On Assets of 15.63% is amongst the best of the industry. APP outperforms 93.29% of its industry peers.
With an excellent Return On Equity value of 101.08%, APP belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
APP has a Return On Invested Capital of 21.13%. This is amongst the best in the industry. APP outperforms 95.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APP is significantly below the industry average of 10.33%.
The 3 year average ROIC (4.97%) for APP is below the current ROIC(21.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.63% | ||
| ROE | 101.08% | ||
| ROIC | 21.13% |
ROA(3y)1.28%
ROA(5y)0.88%
ROE(3y)6.54%
ROE(5y)N/A
ROIC(3y)4.97%
ROIC(5y)6.38%
1.3 Margins
With an excellent Profit Margin value of 20.82%, APP belongs to the best of the industry, outperforming 89.40% of the companies in the same industry.
Looking at the Operating Margin, with a value of 30.69%, APP belongs to the top of the industry, outperforming 96.82% of the companies in the same industry.
APP's Operating Margin has declined in the last couple of years.
APP's Gross Margin of 72.50% is fine compared to the rest of the industry. APP outperforms 60.07% of its industry peers.
In the last couple of years the Gross Margin of APP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.69% | ||
| PM (TTM) | 20.82% | ||
| GM | 72.5% |
OM growth 3Y140.1%
OM growth 5Y-16.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.15%
GM growth 5Y-5.29%
2. Health
2.1 Basic Checks
APP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, APP has less shares outstanding
APP has less shares outstanding than it did 5 years ago.
APP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.46 indicates that APP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.46, APP is doing good in the industry, outperforming 72.08% of the companies in the same industry.
APP has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as APP would need 2.52 years to pay back of all of its debts.
APP has a better Debt to FCF ratio (2.52) than 65.72% of its industry peers.
APP has a Debt/Equity ratio of 4.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APP (4.27) is worse than 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.27 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 5.46 |
ROIC/WACC2.22
WACC9.5%
2.3 Liquidity
A Current Ratio of 2.28 indicates that APP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.28, APP is doing good in the industry, outperforming 64.66% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that APP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.28, APP is in the better half of the industry, outperforming 66.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 3816.67% over the past year.
APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.31%.
The Revenue has been growing by 46.69% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)3816.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%304.55%
Revenue 1Y (TTM)37.31%
Revenue growth 3Y31.28%
Revenue growth 5Y46.69%
Sales Q2Q%43.98%
3.2 Future
Based on estimates for the next years, APP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.41% on average per year.
APP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.27% yearly.
EPS Next Y243.08%
EPS Next 2Y107.55%
EPS Next 3Y72.18%
EPS Next 5Y32.41%
Revenue Next Year35.96%
Revenue Next 2Y24.33%
Revenue Next 3Y20.28%
Revenue Next 5Y14.27%
3.3 Evolution
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
The Price/Earnings ratio is 35.99, which means the current valuation is very expensive for APP.
Based on the Price/Earnings ratio, APP is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.62, APP is valued a bit more expensive.
APP is valuated rather expensively with a Price/Forward Earnings ratio of 19.63.
APP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APP is cheaper than 76.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.22, APP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 19.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APP is valued cheaply inside the industry as 80.92% of the companies are valued more expensively.
APP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APP is cheaper than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 18.69 |
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 decent profitability rating of APP may justify a higher PE ratio.
A more expensive valuation may be justified as APP's earnings are expected to grow with 72.18% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y107.55%
EPS Next 3Y72.18%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
APPLOVIN CORP-CLASS A
NASDAQ:APP (9/6/2024, 8:00:00 PM)
After market: 84.57 0 (0%)84.57
-3.62 (-4.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap28.27B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 19.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.63% | ||
| ROE | 101.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.69% | ||
| PM (TTM) | 20.82% | ||
| GM | 72.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3816.67%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y243.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)37.31%
Revenue growth 3Y31.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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