APPFOLIO INC - A (APPF) Stock Fundamental Analysis
NASDAQ:APPF - Nasdaq - US03783C1009 - Common Stock - Currency: USD
Overall APPF gets a fundamental rating of 7 out of 10. We evaluated APPF against 282 industry peers in the Software industry. APPF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. APPF shows excellent growth, but is valued quite expensive already. These ratings would make APPF suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year APPF was profitable.
APPF had a positive operating cash flow in the past year.
Of the past 5 years APPF 4 years were profitable.
APPF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APPF has a Return On Assets of 34.84%. This is amongst the best in the industry. APPF outperforms 99.29% of its industry peers.
APPF's Return On Equity of 42.58% is amongst the best of the industry. APPF outperforms 94.68% of its industry peers.
The Return On Invested Capital of APPF (21.12%) is better than 94.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.84% | ||
| ROE | 42.58% | ||
| ROIC | 21.12% |
ROA(3y)5.12%
ROA(5y)11.25%
ROE(3y)4.85%
ROE(5y)14.06%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 23.87%, APPF belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Profit Margin of APPF has grown nicely.
The Operating Margin of APPF (16.41%) is better than 84.04% of its industry peers.
APPF's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 63.99%, APPF is in line with its industry, outperforming 43.97% of the companies in the same industry.
In the last couple of years the Gross Margin of APPF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.41% | ||
| PM (TTM) | 23.87% | ||
| GM | 63.99% |
OM growth 3YN/A
OM growth 5Y41.53%
PM growth 3Y351.99%
PM growth 5Y12.62%
GM growth 3Y2.47%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APPF is creating value.
APPF has more shares outstanding than it did 1 year ago.
APPF has more shares outstanding than it did 5 years ago.
There is no outstanding debt for APPF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 57.01 indicates that APPF is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 57.01, APPF belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
There is no outstanding debt for APPF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 57.01 |
ROIC/WACC1.96
WACC10.8%
2.3 Liquidity
A Current Ratio of 4.64 indicates that APPF has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.64, APPF belongs to the best of the industry, outperforming 86.88% of the companies in the same industry.
APPF has a Quick Ratio of 4.64. This indicates that APPF is financially healthy and has no problem in meeting its short term obligations.
APPF's Quick ratio of 4.64 is amongst the best of the industry. APPF outperforms 86.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.64 | ||
| Quick Ratio | 4.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.90% over the past year.
The Earnings Per Share has been growing by 59.90% on average over the past years. This is a very strong growth
Looking at the last year, APPF shows a very strong growth in Revenue. The Revenue has grown by 22.73%.
APPF shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.41% yearly.
EPS 1Y (TTM)63.9%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%14.15%
Revenue 1Y (TTM)22.73%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%16.15%
3.2 Future
APPF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.13% yearly.
The Revenue is expected to grow by 8.43% on average over the next years. This is quite good.
EPS Next Y19.39%
EPS Next 2Y18.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.71%
Revenue Next 2Y16.96%
Revenue Next 3Y8.43%
Revenue Next 5YN/A
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.
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
With a Price/Earnings ratio of 55.28, APPF can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of APPF is on the same level as its industry peers.
When comparing the Price/Earnings ratio of APPF to the average of the S&P500 Index (27.50), we can say APPF is valued expensively.
Based on the Price/Forward Earnings ratio of 40.97, the valuation of APPF can be described as expensive.
APPF's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. APPF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.28 | ||
| Fwd PE | 40.97 |
4.2 Price Multiples
APPF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APPF is cheaper than 62.77% of the companies in the same industry.
APPF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APPF is cheaper than 62.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.75 | ||
| EV/EBITDA | 56.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APPF does not grow enough to justify the current Price/Earnings ratio.
APPF has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as APPF's earnings are expected to grow with 18.13% in the coming years.
PEG (NY)2.85
PEG (5Y)0.92
EPS Next 2Y18.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for APPF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
250.95
-3.02 (-1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change-0.01%
Ins Owners3.32%
Ins Owner Change4.44%
Market Cap9.04B
Analysts75.38
Price Target223.05 (-11.12%)
Short Float %6.09%
Short Ratio5.1
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)0
Avg EPS beat(2)-3.68%
Min EPS beat(2)-4.25%
Max EPS beat(2)-3.12%
EPS beat(4)2
Avg EPS beat(4)7.45%
Min EPS beat(4)-4.25%
Max EPS beat(4)22.46%
EPS beat(8)6
Avg EPS beat(8)24.86%
EPS beat(12)10
Avg EPS beat(12)55.91%
EPS beat(16)10
Avg EPS beat(16)-123.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)1.54%
Revenue beat(8)6
Avg Revenue beat(8)1.16%
Revenue beat(12)9
Avg Revenue beat(12)1.36%
Revenue beat(16)12
Avg Revenue beat(16)1.08%
PT rev (1m)-6.36%
PT rev (3m)-18.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.28 | ||
| Fwd PE | 40.97 | ||
| P/S | 10.97 | ||
| P/FCF | 50.75 | ||
| P/OCF | 49.23 | ||
| P/B | 19.57 | ||
| P/tB | 29.59 | ||
| EV/EBITDA | 56.8 |
EPS(TTM)4.54
EY1.81%
EPS(NY)6.13
Fwd EY2.44%
FCF(TTM)4.94
FCFY1.97%
OCF(TTM)5.1
OCFY2.03%
SpS22.88
BVpS12.83
TBVpS8.48
PEG (NY)2.85
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.84% | ||
| ROE | 42.58% | ||
| ROCE | 26.74% | ||
| ROIC | 21.12% | ||
| ROICexc | 36.2% | ||
| ROICexgc | 77.05% | ||
| OM | 16.41% | ||
| PM (TTM) | 23.87% | ||
| GM | 63.99% | ||
| FCFM | 21.61% |
ROA(3y)5.12%
ROA(5y)11.25%
ROE(3y)4.85%
ROE(5y)14.06%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y55.49%
ROICexc growth 3YN/A
ROICexc growth 5Y60.78%
OM growth 3YN/A
OM growth 5Y41.53%
PM growth 3Y351.99%
PM growth 5Y12.62%
GM growth 3Y2.47%
GM growth 5Y1.35%
F-Score6
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.46% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 118.74% | ||
| Profit Quality | 90.54% | ||
| Current Ratio | 4.64 | ||
| Quick Ratio | 4.64 | ||
| Altman-Z | 57.01 |
F-Score6
WACC10.8%
ROIC/WACC1.96
Cap/Depr(3y)53.87%
Cap/Depr(5y)88.52%
Cap/Sales(3y)2.55%
Cap/Sales(5y)6.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.9%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%14.15%
EPS Next Y19.39%
EPS Next 2Y18.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)22.73%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%16.15%
Revenue Next Year17.71%
Revenue Next 2Y16.96%
Revenue Next 3Y8.43%
Revenue Next 5YN/A
EBIT growth 1Y105.59%
EBIT growth 3YN/A
EBIT growth 5Y77.49%
EBIT Next Year25.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1476.66%
FCF growth 3Y307.73%
FCF growth 5Y79.14%
OCF growth 1Y529.44%
OCF growth 3Y74.53%
OCF growth 5Y37.07%