AppLovin (APP) Stock Analysis
This is a peer-relative look at AppLovin (APP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | APP |
|---|---|
| Name | AppLovin Corporation Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | Software |
| GICS Sub-Industry | Application Software |
| Market Capitalization | 129.62 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | April 15, 2021 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| Total Return (1Y) | -34.71% | -3.00% |
| Total Return (3Y, Annualized) | 116.87% | 8.28% |
| Total Return (5Y, Annualized) | 31.34% | -7.91% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 80.36% | 61.69% |
| Beta (5Y) | 2.25 | 1.06 |
| Max Drawdown (5Y) | -91.90% | -76.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.49 | -0.13 |
| Sortino Ratio (1Y) | -0.69 | -0.19 |
Profitability
ROE (TTM)
AppLovin (APP) posts ROE of 210.09%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
APP
Software & Services industry group
210.09%
Group distribution
- APP
- 210.09%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Largest peers
- APP
- 210.09%
- ORCL
- 41.19%
- PLTR
- 40.91%
- IBM
- 34.77%
- MSFT
- 34.22%
- SAP
- 18.18%
- PANW
- 1.74%
Net Margin (TTM)
AppLovin (APP) keeps 65.89% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
APP
Software & Services industry group
65.89%
Group distribution
- APP
- 65.89%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Largest peers
- APP
- 65.89%
- PLTR
- 50.34%
- MSFT
- 41.17%
- ORCL
- 26.36%
- SAP
- 20.41%
- IBM
- 15.99%
- PANW
- 2.67%
Operating Margin (TTM)
AppLovin (APP) turns 78.22% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.
APP
Software & Services industry group
78.22%
Group distribution
- APP
- 78.22%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Largest peers
- APP
- 78.22%
- MSFT
- 49.76%
- PLTR
- 46.89%
- ORCL
- 35.63%
- SAP
- 29.50%
- IBM
- 16.97%
- PANW
- 5.40%
Profitability Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| ROE (TTM) | 210.09% | 6.59% |
| ROA (TTM) | 49.57% | 2.45% |
| Net Margin (TTM) | 65.89% | 4.63% |
| Operating Margin (TTM) | 78.22% | 8.73% |
| Gross Margin (TTM) | 88.78% | 70.07% |
Growth
Revenue Growth
AppLovin (APP) grew revenue 69.99%, above the industry benchmark range. Demand is expanding faster than at any typical peer, though growth that far ahead of the group is worth checking for acquisitions or other one-off contributions.
EPS Growth
AppLovin (APP) grew earnings per share 115.23%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.
Growth Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 69.99% | 14.22% |
| Revenue Growth (3Y CAGR) | 24.84% | 13.52% |
| EPS Growth (YoY) | 115.23% | 7.85% |
| EPS Growth (3Y CAGR) | -- | 18.19% |
Financial Strength
Current Ratio (MRQ)
AppLovin (APP) has current ratio of 3.81, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
APP
Software & Services industry group
3.81
Group distribution
- Max
- 5.11
- APP
- 3.81
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Largest peers
- PLTR
- 7.10
- APP
- 3.81
- MSFT
- 1.23
- ORCL
- 1.17
- SAP
- 1.16
- PANW
- 0.87
- IBM
- 0.86
Debt / Equity (MRQ)
AppLovin (APP) has debt-to-equity ratio of 1.07, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
APP
Software & Services industry group
1.07
Group distribution
- Max
- 2.52
- Q3
- 1.13
- APP
- 1.07
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Largest peers
- ORCL
- 2.52
- IBM
- 1.85
- APP
- 1.07
- MSFT
- 0.28
- SAP
- 0.23
- PANW
- 0.09
- PLTR
- 0.02
Financial Strength Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 3.81 | 1.67 |
| Debt / Equity (MRQ) | 1.07 | 0.40 |
| Net Debt / EBITDA | 0.06 | 0.17 |
Dividends
Dividend Yield (TTM)
AppLovin (APP) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
APP
Software & Services industry group
0.00%
Group distribution
- APP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 2.73%
- ORCL
- 1.74%
- SAP
- 1.03%
- MSFT
- 0.69%
- APP
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
Dividend Payout Ratio (TTM)
AppLovin (APP) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
APP
Software & Services industry group
0.00%
Group distribution
- APP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 57.51%
- SAP
- 36.45%
- ORCL
- 31.35%
- MSFT
- 19.00%
- APP
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
Dividend Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
AppLovin (APP) trades at P/E ratio of 26.34, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
APP
Software & Services industry group
26.34
Group distribution
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- APP
- 26.34
- Q1
- 18.77
- Min
- 6.69
Largest peers
- PANW
- 784.60
- PLTR
- 112.94
- SAP
- 29.07
- MSFT
- 27.69
- APP
- 26.34
- IBM
- 20.90
- ORCL
- 18.20
P/S Ratio (TTM)
AppLovin (APP) trades at 17.04 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
APP
Software & Services industry group
17.04
Group distribution
- Max
- 17.91
- APP
- 17.04
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
Largest peers
- PLTR
- 53.02
- PANW
- 22.37
- APP
- 17.04
- MSFT
- 11.37
- SAP
- 6.84
- ORCL
- 5.04
- IBM
- 3.31
P/B Ratio (MRQ)
AppLovin (APP) trades at 39.29 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
APP
Software & Services industry group
39.29
Group distribution
- APP
- 39.29
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Largest peers
- SAP
- 73.25
- APP
- 39.29
- PLTR
- 34.41
- PANW
- 9.30
- MSFT
- 8.38
- IBM
- 6.52
- ORCL
- 5.68
Valuation Metrics
| Metric | Current stock: APP | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 26.34 | 32.91 |
| P/S Ratio (TTM) | 17.04 | 4.25 |
| P/B Ratio (MRQ) | 39.29 | 4.30 |
| Free Cash Flow Yield (TTM) | 2.87% | 3.98% |