APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis
USA - NASDAQ:APP - US03831W1080 - Common Stock
619.93 USD
-1.43 (-0.23%)
622.99 USD
+3.06 (+0.49%)
We assign a fundamental rating of 7 out of 10 to APP. APP was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make APP a good candidate for growth and quality investing.
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.
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
APP's Return On Assets of 40.75% is amongst the best of the industry. APP outperforms 98.59% of its industry peers.
Looking at the Return On Equity, with a value of 208.08%, APP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 47.95%, APP belongs to the best of the industry, outperforming 98.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for APP is above the industry average of 11.85%.
The 3 year average ROIC (14.51%) for APP is below the current ROIC(47.95%), indicating increased profibility in the last year.
| 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
The Profit Margin of APP (45.70%) is better than 94.01% of its industry peers.
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 97.54% of its industry peers.
In the last couple of years the Operating Margin of APP has grown nicely.
APP has a better Gross Margin (80.87%) than 83.80% 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 3Y94.93%
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
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.
Compared to 5 years ago, APP has less shares outstanding
Compared to 1 year ago, APP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 29.39 indicates that APP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 29.39, APP belongs to the best of the industry, outperforming 95.77% 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.
APP has a better Debt to FCF ratio (1.21) than 73.94% 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.
APP has a worse Debt to Equity ratio (3.01) than 82.04% of its industry peers.
Although APP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.01 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 29.39 |
ROIC/WACC4.36
WACC11%
2.3 Liquidity
A Current Ratio of 2.74 indicates that APP has no problem at all paying its short term obligations.
APP has a better Current ratio (2.74) than 75.00% of its industry peers.
A Quick Ratio of 2.74 indicates that APP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.74, APP is in the better half of the industry, outperforming 75.35% of the companies in the same industry.
| 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 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 43.44%.
The Revenue has been growing by 36.49% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)166.36%
EPS 3Y269.22%
EPS 5Y84.83%
EPS Q2Q%96%
Revenue 1Y (TTM)43.44%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
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 26.64% on average over the next years. This is a very strong growth
EPS Next Y100.06%
EPS Next 2Y75.81%
EPS Next 3Y58.08%
EPS Next 5Y31.97%
Revenue Next Year21.68%
Revenue Next 2Y27.51%
Revenue Next 3Y27.12%
Revenue Next 5Y26.64%
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.
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
A Price/Earnings ratio of 70.53 indicates a quite expensive valuation of APP.
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 25.83. APP is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.18, APP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APP is on the same level as its industry peers.
APP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.53 | ||
| Fwd PE | 44.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APP is valued a bit cheaper than 60.56% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as APP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.43 | ||
| EV/EBITDA | 64.25 |
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 58.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)0.83
EPS Next 2Y75.81%
EPS Next 3Y58.08%
5. Dividend
5.1 Amount
APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
619.93
-1.43 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.06%
Inst Owner Change0.75%
Ins Owners4.73%
Ins Owner Change-0.47%
Market Cap209.69B
Revenue(TTM)4.71B
Net Income(TTM)2.43B
Analysts81.25
Price Target666.86 (7.57%)
Short Float %6.87%
Short Ratio2.23
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)27.26%
PT rev (3m)35.89%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)8.05%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)8.9%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.53 | ||
| Fwd PE | 44.18 | ||
| P/S | 39.46 | ||
| P/FCF | 72.43 | ||
| P/OCF | 72.31 | ||
| P/B | 179.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 64.25 |
EPS(TTM)8.79
EY1.42%
EPS(NY)14.03
Fwd EY2.26%
FCF(TTM)8.56
FCFY1.38%
OCF(TTM)8.57
OCFY1.38%
SpS15.71
BVpS3.45
TBVpS-2.43
PEG (NY)0.7
PEG (5Y)0.83
Graham Number26.12
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%
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 Turnover0.89
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 | 29.39 |
F-Score9
WACC11%
ROIC/WACC4.36
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 Y100.06%
EPS Next 2Y75.81%
EPS Next 3Y58.08%
EPS Next 5Y31.97%
Revenue 1Y (TTM)43.44%
Revenue growth 3Y19.02%
Revenue growth 5Y36.49%
Sales Q2Q%17.26%
Revenue Next Year21.68%
Revenue Next 2Y27.51%
Revenue Next 3Y27.12%
Revenue Next 5Y26.64%
EBIT growth 1Y150.29%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year136.13%
EBIT Next 3Y58.7%
EBIT Next 5Y47.08%
FCF growth 1Y242.92%
FCF growth 3Y80.45%
FCF growth 5Y60.75%
OCF growth 1Y238.73%
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 70.53 and the Price/Book (PB) ratio is 179.66.
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 100.06% in the next year.