APPLOVIN CORP-CLASS A (APP)
US03831W1080 - Common Stock
We assign a fundamental rating of 5 out of 10 to APP. APP was compared to 275 industry peers in the Software industry. APP has only an average score on both its financial health and profitability. APP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
APP had positive earnings in the past year.
APP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: APP reported negative net income in multiple years.
APP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APP has a Return On Assets of 6.62%. This is amongst the best in the industry. APP outperforms 85.45% of its industry peers.
APP has a better Return On Equity (28.25%) than 93.45% of its industry peers.
With an excellent Return On Invested Capital value of 12.06%, APP belongs to the best of the industry, outperforming 91.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for APP is significantly below the industry average of 10.17%.
The last Return On Invested Capital (12.06%) for APP is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 28.25% | ||
| ROIC | 12.06% |
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
APP has a Profit Margin of 10.81%. This is amongst the best in the industry. APP outperforms 82.55% of its industry peers.
APP's Operating Margin of 20.58% is amongst the best of the industry. APP outperforms 91.27% of its industry peers.
APP's Operating Margin has declined in the last couple of years.
APP has a Gross Margin (68.58%) which is in line with its industry peers.
In the last couple of years the Gross Margin of APP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.58% | ||
| PM (TTM) | 10.81% | ||
| GM | 68.58% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for APP has been reduced compared to 1 year ago.
APP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, APP has a worse debt to assets ratio.
2.2 Solvency
APP has an Altman-Z score of 4.75. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.75, APP is doing good in the industry, outperforming 68.73% of the companies in the same industry.
APP has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as APP would need 2.96 years to pay back of all of its debts.
APP's Debt to FCF ratio of 2.96 is fine compared to the rest of the industry. APP outperforms 68.00% of its industry peers.
APP has a Debt/Equity ratio of 2.32. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APP (2.32) is worse than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.23
WACC9.81%
2.3 Liquidity
A Current Ratio of 1.71 indicates that APP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, APP is in line with its industry, outperforming 49.82% of the companies in the same industry.
APP has a Quick Ratio of 1.71. This is a normal value and indicates that APP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of APP (1.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 292.31% over the past year.
APP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.55%.
Measured over the past years, APP shows a very strong growth in Revenue. The Revenue has been growing by 46.69% on average per year.
EPS 1Y (TTM)292.31%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q333.33%
Revenue 1Y (TTM)16.55%
Revenue growth 3Y31.28%
Revenue growth 5Y46.69%
Revenue growth Q2Q35.73%
3.2 Future
APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.41% yearly.
APP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.04% yearly.
EPS Next Y154.45%
EPS Next 2Y77.45%
EPS Next 3Y59%
EPS Next 5Y32.41%
Revenue Next Year25.05%
Revenue Next 2Y17.12%
Revenue Next 3Y13.95%
Revenue Next 5Y9.04%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 71.76, the valuation of APP can be described as expensive.
APP's Price/Earnings is on the same level as the industry average.
APP is valuated expensively when we compare the Price/Earnings ratio to 25.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.20, APP can be considered very expensive at the moment.
73.09% of the companies in the same industry are more expensive than APP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.78, APP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.76 | ||
| Fwd PE | 28.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APP is valued cheaper than 81.82% of the companies in the same industry.
82.55% 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 | 23.21 | ||
| EV/EBITDA | 24.44 |
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.
APP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as APP's earnings are expected to grow with 59.00% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y77.45%
EPS Next 3Y59%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
APPLOVIN CORP-CLASS A
NASDAQ:APP (4/15/2024, 1:20:10 PM)
71.76
-3.81 (-5.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.76 | ||
| Fwd PE | 28.2 | ||
| 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)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 28.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.58% | ||
| PM (TTM) | 10.81% | ||
| GM | 68.58% | ||
| 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| 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)
Growth
EPS 1Y (TTM)292.31%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y154.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.55%
Revenue growth 3Y31.28%
Revenue growth 5Y
Revenue growth 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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OCF growth 5Y