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 gets an excellent profitability rating and is at the same time showing great financial health properties. APPF is valued quite expensive, but it does show an excellent growth. This makes APPF very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year APPF was profitable.
In the past year APPF had a positive cash flow from operations.
APPF had positive earnings in 4 of the past 5 years.
In the past 5 years APPF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of APPF (34.84%) is better than 99.29% of its industry peers.
With an excellent Return On Equity value of 42.58%, APPF belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
APPF's Return On Invested Capital of 21.12% is amongst the best of the industry. APPF outperforms 94.35% 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
APPF has a better Profit Margin (23.87%) than 91.87% of its industry peers.
In the last couple of years the Profit Margin of APPF has grown nicely.
APPF has a Operating Margin of 16.41%. This is amongst the best in the industry. APPF outperforms 84.10% of its industry peers.
APPF's Operating Margin has improved in the last couple of years.
APPF has a Gross Margin (63.99%) which is in line with its industry peers.
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
APPF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for APPF has been increased compared to 1 year ago.
Compared to 5 years ago, APPF has more shares outstanding
APPF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 53.11 indicates that APPF is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 53.11, APPF belongs to the best of the industry, outperforming 97.88% of the companies in the same industry.
APPF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 53.11 |
ROIC/WACC1.93
WACC10.97%
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 86.93% of the companies in the same industry.
A Quick Ratio of 4.64 indicates that APPF has no problem at all paying its short term obligations.
The Quick ratio of APPF (4.64) is better than 86.93% 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.
APPF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.90% yearly.
Looking at the last year, APPF shows a very strong growth in Revenue. The Revenue has grown by 22.73%.
Measured over the past years, APPF shows a very strong growth in Revenue. The Revenue has been growing by 25.41% on average per year.
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
The Earnings Per Share is expected to grow by 18.13% on average over the next years. This is quite good.
Based on estimates for the next years, APPF will show a quite strong growth in Revenue. The Revenue will grow by 8.43% on average per year.
EPS Next Y19.39%
EPS Next 2Y18.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.67%
Revenue Next 2Y16.91%
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
APPF is valuated quite expensively with a Price/Earnings ratio of 51.87.
Compared to the rest of the industry, the Price/Earnings ratio of APPF indicates a somewhat cheap valuation: APPF is cheaper than 60.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of APPF to the average of the S&P500 Index (27.45), we can say APPF is valued expensively.
The Price/Forward Earnings ratio is 38.44, which means the current valuation is very expensive for APPF.
APPF's Price/Forward Earnings ratio is in line with the industry average.
APPF's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.87 | ||
| Fwd PE | 38.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APPF indicates a somewhat cheap valuation: APPF is cheaper than 64.66% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APPF is valued a bit cheaper than 63.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.62 | ||
| EV/EBITDA | 52.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of APPF may justify a higher PE ratio.
APPF's earnings are expected to grow with 18.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.67
PEG (5Y)0.87
EPS Next 2Y18.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
APPF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
235.49
+2.84 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change-54.34%
Ins Owners3.32%
Ins Owner Change4.44%
Market Cap8.48B
Analysts75.38
Price Target223.05 (-5.28%)
Short Float %6.45%
Short Ratio4.54
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)-9.95%
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%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.87 | ||
| Fwd PE | 38.44 | ||
| P/S | 10.29 | ||
| P/FCF | 47.62 | ||
| P/OCF | 46.2 | ||
| P/B | 18.36 | ||
| P/tB | 27.77 | ||
| EV/EBITDA | 52.49 |
EPS(TTM)4.54
EY1.93%
EPS(NY)6.13
Fwd EY2.6%
FCF(TTM)4.94
FCFY2.1%
OCF(TTM)5.1
OCFY2.16%
SpS22.88
BVpS12.83
TBVpS8.48
PEG (NY)2.67
PEG (5Y)0.87
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 | 53.11 |
F-Score6
WACC10.97%
ROIC/WACC1.93
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 Year17.67%
Revenue Next 2Y16.91%
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%