675.16 USD
+4.49 (+0.67%)
671.05 USD
-4.11 (-0.61%)
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 overvalued while it is showing excellent growth. This is an interesting combination. This makes APP very considerable 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.
In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 44.61%, APP belongs to the top of the industry, outperforming 98.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 191.99%, APP belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
APP has a better Return On Invested Capital (52.42%) than 98.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APP is above the industry average of 10.81%.
The last Return On Invested Capital (52.42%) for APP is above the 3 year average (14.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 44.61% | ||
| ROE | 191.99% | ||
| ROIC | 52.42% |
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
The Profit Margin of APP (51.26%) is better than 94.64% of its industry peers.
In the last couple of years the Profit Margin of APP has grown nicely.
The Operating Margin of APP (63.35%) is better than 97.86% of its industry peers.
APP's Operating Margin has improved in the last couple of years.
The Gross Margin of APP (83.31%) is better than 89.29% of its industry peers.
In the last couple of years the Gross Margin of APP has remained more or less at the same level.
| 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
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 about the same amount of shares outstanding.
The number of shares outstanding for APP has been reduced compared to 5 years ago.
APP has a better debt/assets ratio than last year.
2.2 Solvency
APP has an Altman-Z score of 31.31. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 31.31, APP belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Debt to FCF ratio of APP is 1.03, which is an excellent value as it means it would take APP, only 1.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of APP (1.03) is better than 74.64% of its industry peers.
APP has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
APP has a worse Debt to Equity ratio (2.38) than 82.50% 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 | 2.38 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 31.31 |
ROIC/WACC4.77
WACC10.98%
2.3 Liquidity
A Current Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
APP has a better Current ratio (3.25) than 77.86% of its industry peers.
A Quick Ratio of 3.25 indicates that APP has no problem at all paying its short term obligations.
APP has a better Quick ratio (3.25) than 77.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 166.36%, which is quite impressive.
Measured over the past years, APP shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.83% on average per year.
APP shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.81%.
APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.49% yearly.
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
The Earnings Per Share is expected to grow by 44.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.30% on average over the next years. This is a very strong growth
EPS Next Y108.36%
EPS Next 2Y80.25%
EPS Next 3Y62.15%
EPS Next 5Y44.45%
Revenue Next Year24.1%
Revenue Next 2Y30.15%
Revenue Next 3Y29.01%
Revenue Next 5Y27.3%
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
With a Price/Earnings ratio of 76.81, APP can be considered very expensive at the moment.
APP's Price/Earnings is on the same level as the industry average.
APP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.55.
APP is valuated quite expensively with a Price/Forward Earnings ratio of 45.77.
APP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.78. APP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.81 | ||
| Fwd PE | 45.77 |
4.2 Price Multiples
APP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as APP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.15 | ||
| EV/EBITDA | 60.34 |
4.3 Compensation for Growth
APP'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 APP may justify a higher PE ratio.
APP's earnings are expected to grow with 62.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)0.91
EPS Next 2Y80.25%
EPS Next 3Y62.15%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
675.16
+4.49 (+0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.17%
Inst Owner Change22.25%
Ins Owners4.66%
Ins Owner Change-0.4%
Market Cap228.17B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target735.09 (8.88%)
Short Float %6.56%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.84%
Min EPS beat(2)1.04%
Max EPS beat(2)16.63%
EPS beat(4)4
Avg EPS beat(4)26.81%
Min EPS beat(4)1.04%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)26.42%
EPS beat(12)10
Avg EPS beat(12)-16.98%
EPS beat(16)10
Avg EPS beat(16)-61.33%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)3.69%
Revenue beat(4)3
Avg Revenue beat(4)3.88%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)7.5%
Revenue beat(8)6
Avg Revenue beat(8)3.56%
Revenue beat(12)10
Avg Revenue beat(12)3.44%
Revenue beat(16)11
Avg Revenue beat(16)0.92%
PT rev (1m)10.23%
PT rev (3m)40.28%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)6.61%
EPS NY rev (1m)4.15%
EPS NY rev (3m)8.03%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.81 | ||
| Fwd PE | 45.77 | ||
| P/S | 41.33 | ||
| P/FCF | 67.15 | ||
| P/OCF | 67.05 | ||
| P/B | 154.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.34 |
EPS(TTM)8.79
EY1.3%
EPS(NY)14.75
Fwd EY2.18%
FCF(TTM)10.05
FCFY1.49%
OCF(TTM)10.07
OCFY1.49%
SpS16.34
BVpS4.36
TBVpS-1.45
PEG (NY)0.71
PEG (5Y)0.91
Graham Number29.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 44.61% | ||
| ROE | 191.99% | ||
| ROCE | 66.36% | ||
| ROIC | 52.42% | ||
| ROICexc | 76.68% | ||
| ROICexgc | 168.43% | ||
| OM | 63.35% | ||
| PM (TTM) | 51.26% | ||
| GM | 83.31% | ||
| FCFM | 61.55% |
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%
ROICexgc growth 3Y130.55%
ROICexgc growth 5YN/A
ROICexc growth 3Y131.05%
ROICexc growth 5Y6.08%
OM growth 3Y94.93%
OM growth 5Y15.27%
PM growth 3Y209%
PM growth 5Y34.24%
GM growth 3Y5.19%
GM growth 5Y-0.13%
F-Score9
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 23.08 | ||
| Cash Conversion | 89.85% | ||
| Profit Quality | 120.08% | ||
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 31.31 |
F-Score9
WACC10.98%
ROIC/WACC4.77
Cap/Depr(3y)1.05%
Cap/Depr(5y)1.14%
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)166.36%
EPS 3Y269.22%
EPS 5Y84.83%
EPS Q2Q%96%
EPS Next Y108.36%
EPS Next 2Y80.25%
EPS Next 3Y62.15%
EPS Next 5Y44.45%
Revenue 1Y (TTM)40.81%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
Revenue Next Year24.1%
Revenue Next 2Y30.15%
Revenue Next 3Y29.01%
Revenue Next 5Y27.3%
EBIT growth 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year145.5%
EBIT Next 3Y64.46%
EBIT Next 5Y50.97%
FCF growth 1Y291.13%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y286.36%
OCF growth 3Y79.68%
OCF growth 5Y60.28%
APPLOVIN CORP-CLASS A / APP FAQ
What is the fundamental rating for APP stock?
ChartMill assigns a fundamental rating of 7 / 10 to APP.
What is the valuation status for APP stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLOVIN CORP-CLASS A (APP). This can be considered as Fairly Valued.
How profitable is APPLOVIN CORP-CLASS A (APP) stock?
APPLOVIN CORP-CLASS A (APP) has a profitability rating of 9 / 10.
What are the PE and PB ratios of APPLOVIN CORP-CLASS A (APP) stock?
The Price/Earnings (PE) ratio for APPLOVIN CORP-CLASS A (APP) is 76.81 and the Price/Book (PB) ratio is 154.81.
What is the earnings growth outlook for APPLOVIN CORP-CLASS A?
The Earnings per Share (EPS) of APPLOVIN CORP-CLASS A (APP) is expected to grow by 108.36% in the next year.