APPLOVIN CORP-CLASS A (APP) Stock Fundamental Analysis
USA - NASDAQ:APP - US03831W1080 - Common Stock
529.45 USD
+3.44 (+0.65%)
APP gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 281 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
In the past year APP was profitable.
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.
In the past 5 years APP always reported a positive cash flow from operatings.
1.2 Ratios
APP's Return On Assets of 44.61% is amongst the best of the industry. APP outperforms 98.93% of its industry peers.
With an excellent Return On Equity value of 191.99%, APP belongs to the best of the industry, outperforming 99.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 52.42%, APP belongs to the top of the industry, outperforming 98.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for APP is above the industry average of 12.08%.
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
With an excellent Profit Margin value of 51.26%, APP belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
In the last couple of years the Profit Margin of APP has grown nicely.
APP has a better Operating Margin (63.35%) 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 90.39% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 25.30 indicates that APP is not in any danger for bankruptcy at the moment.
APP has a Altman-Z score of 25.30. This is amongst the best in the industry. APP outperforms 95.73% of its industry peers.
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.
APP's Debt to FCF ratio of 1.03 is fine compared to the rest of the industry. APP outperforms 75.80% 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 Debt to Equity ratio of 2.38. This is amonst the worse of the industry: APP underperforms 81.85% 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 | 25.3 |
ROIC/WACC4.73
WACC11.08%
2.3 Liquidity
APP has a Current Ratio of 3.25. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.25, APP is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
APP has a Quick Ratio of 3.25. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.25, APP is doing good in the industry, outperforming 79.00% of the companies in the same industry.
| 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.
APP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.83% yearly.
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 31.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, APP will show a very strong growth in Revenue. The Revenue will grow by 26.64% on average per year.
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
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.
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
The Price/Earnings ratio is 60.23, which means the current valuation is very expensive for APP.
APP's Price/Earnings ratio is in line with the industry average.
APP is valuated expensively when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 37.73, which means the current valuation is very expensive for APP.
APP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, APP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.23 | ||
| Fwd PE | 37.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APP is valued a bit cheaper than 64.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.7 | ||
| EV/EBITDA | 47.47 |
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)0.6
PEG (5Y)0.71
EPS Next 2Y75.81%
EPS Next 3Y58.08%
5. Dividend
5.1 Amount
No dividends for APP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:APP (11/19/2025, 2:58:33 PM)
529.45
+3.44 (+0.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.06%
Inst Owner Change22.25%
Ins Owners4.73%
Ins Owner Change-0.87%
Market Cap179.09B
Revenue(TTM)5.52B
Net Income(TTM)2.83B
Analysts81.25
Price Target666.86 (25.95%)
Short Float %6.46%
Short Ratio2.21
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)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)12.12%
PT rev (3m)35.85%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)15.28%
EPS NY rev (1m)1.7%
EPS NY rev (3m)11.06%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)5.9%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.23 | ||
| Fwd PE | 37.73 | ||
| P/S | 32.44 | ||
| P/FCF | 52.7 | ||
| P/OCF | 52.63 | ||
| P/B | 121.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.47 |
EPS(TTM)8.79
EY1.66%
EPS(NY)14.03
Fwd EY2.65%
FCF(TTM)10.05
FCFY1.9%
OCF(TTM)10.06
OCFY1.9%
SpS16.32
BVpS4.36
TBVpS-1.45
PEG (NY)0.6
PEG (5Y)0.71
Graham Number29.36
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 | 25.3 |
F-Score9
WACC11.08%
ROIC/WACC4.73
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)40.81%
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 1Y128.8%
EBIT growth 3Y132.01%
EBIT growth 5Y57.33%
EBIT Next Year136.13%
EBIT Next 3Y58.7%
EBIT Next 5Y47.08%
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 8 / 10 to APP.
What is the valuation status for APP stock?
ChartMill assigns a valuation rating of 5 / 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 60.23 and the Price/Book (PB) ratio is 121.5.
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.