APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis
NASDAQ:APP - US03831W1080 - Common Stock
441.68 USD
+22.92 (+5.47%)
443.75 USD
+2.07 (+0.47%)
Overall APP gets a fundamental rating of 8 out of 10. We evaluated APP against 283 industry peers in the Software industry. APP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
APP had positive earnings in the past year.
In the past year APP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: APP reported negative net income in multiple years.
Each year in the past 5 years APP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of APP (40.75%) is better than 99.29% of its industry peers.
APP's Return On Equity of 208.08% is amongst the best of the industry. APP outperforms 100.00% of its industry peers.
APP has a better Return On Invested Capital (47.95%) than 98.94% of its industry peers.
APP had an Average Return On Invested Capital over the past 3 years of 14.51%. This is above the industry average of 11.99%.
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
Looking at the Profit Margin, with a value of 45.70%, APP belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
APP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 55.57%, APP belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
In the last couple of years the Operating Margin of APP has grown nicely.
APP's Gross Margin of 80.87% is amongst the best of the industry. APP outperforms 83.04% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APP is creating value.
The number of shares outstanding for APP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, APP has less shares outstanding
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 20.82 indicates that APP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 20.82, APP belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
The Debt to FCF ratio of APP is 1.21, which is an excellent value as it means it would take APP, only 1.21 years of fcf income to pay off all of its debts.
APP has a Debt to FCF ratio of 1.21. This is in the better half of the industry: APP outperforms 73.85% of its industry peers.
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 82.33% 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 | 20.82 |
ROIC/WACC4.22
WACC11.36%
2.3 Liquidity
A Current Ratio of 2.74 indicates that APP has no problem at all paying its short term obligations.
APP's Current ratio of 2.74 is fine compared to the rest of the industry. APP outperforms 74.91% of its industry peers.
APP has a Quick Ratio of 2.74. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
APP has a Quick ratio of 2.74. This is in the better half of the industry: APP outperforms 75.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.98%, which is quite impressive.
The Earnings Per Share has been growing by 84.87% on average over the past years. This is a very strong growth
Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 34.33%.
APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.49% yearly.
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
The Earnings Per Share is expected to grow by 31.97% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 23.97% on average over the next years. This is a very strong growth
EPS Next Y80.13%
EPS Next 2Y61.24%
EPS Next 3Y46.07%
EPS Next 5Y31.97%
Revenue Next Year21.34%
Revenue Next 2Y21.42%
Revenue Next 3Y22.2%
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 58.19, APP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of APP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.24. APP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 37.42 indicates a quite expensive valuation of APP.
APP's Price/Forward Earnings is on the same level as the industry average.
APP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.19 | ||
| Fwd PE | 37.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a somewhat cheap valuation: APP is cheaper than 65.02% of the companies listed in the same industry.
60.42% of the companies in the same industry are more expensive than APP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.62 | ||
| EV/EBITDA | 43.55 |
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 46.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)0.69
EPS Next 2Y61.24%
EPS Next 3Y46.07%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
441.68
+22.92 (+5.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.15%
Inst Owner Change-7.57%
Ins Owners4.87%
Ins Owner Change-0.58%
Market Cap149.46B
Analysts81.33
Price Target490.88 (11.14%)
Short Float %4.43%
Short Ratio1.89
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)0.37%
PT rev (3m)2.66%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)25.08%
EPS NY rev (1m)0%
EPS NY rev (3m)16.9%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.19 | ||
| Fwd PE | 37.42 | ||
| P/S | 28.13 | ||
| P/FCF | 51.62 | ||
| P/OCF | 51.54 | ||
| P/B | 128.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.55 |
EPS(TTM)7.59
EY1.72%
EPS(NY)11.8
Fwd EY2.67%
FCF(TTM)8.56
FCFY1.94%
OCF(TTM)8.57
OCFY1.94%
SpS15.7
BVpS3.45
TBVpS-2.42
PEG (NY)0.73
PEG (5Y)0.69
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 | 20.82 |
F-Score9
WACC11.36%
ROIC/WACC4.22
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 Y80.13%
EPS Next 2Y61.24%
EPS Next 3Y46.07%
EPS Next 5Y31.97%
Revenue 1Y (TTM)34.33%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%16.54%
Revenue Next Year21.34%
Revenue Next 2Y21.42%
Revenue Next 3Y22.2%
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%