APPFOLIO INC - A (APPF) Stock Fundamental Analysis
USA - NASDAQ:APPF - US03783C1009 - Common Stock
240.31 USD
-0.07 (-0.03%)
240.31 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to APPF. APPF was compared to 285 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. These ratings could make APPF a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
APPF had positive earnings in the past year.
In the past year APPF had a positive cash flow from operations.
APPF had positive earnings in 4 of the past 5 years.
APPF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APPF's Return On Assets of 35.79% is amongst the best of the industry. APPF outperforms 98.25% of its industry peers.
APPF has a better Return On Equity (44.57%) than 95.44% of its industry peers.
The Return On Invested Capital of APPF (22.10%) is better than 94.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.79% | ||
| ROE | 44.57% | ||
| ROIC | 22.1% |
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 (23.54%) than 88.77% of its industry peers.
APPF's Profit Margin has improved in the last couple of years.
APPF has a better Operating Margin (16.21%) than 82.46% of its industry peers.
In the last couple of years the Operating Margin of APPF has grown nicely.
Looking at the Gross Margin, with a value of 63.93%, APPF is in line with its industry, outperforming 42.46% of the companies in the same industry.
APPF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.21% | ||
| PM (TTM) | 23.54% | ||
| GM | 63.93% |
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.
Compared to 1 year ago, APPF has more shares outstanding
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 49.74 indicates that APPF is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 49.74, APPF belongs to the best of the industry, outperforming 96.84% 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 | 49.74 |
ROIC/WACC2.01
WACC11.02%
2.3 Liquidity
APPF has a Current Ratio of 2.92. This indicates that APPF is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of APPF (2.92) is better than 76.84% of its industry peers.
APPF has a Quick Ratio of 2.92. This indicates that APPF is financially healthy and has no problem in meeting its short term obligations.
APPF has a Quick ratio of 2.92. This is in the better half of the industry: APPF outperforms 77.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
APPF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.15%, which is quite impressive.
Measured over the past years, APPF shows a very strong growth in Earnings Per Share. The EPS has been growing by 59.90% on average per year.
Looking at the last year, APPF shows a quite strong growth in Revenue. The Revenue has grown by 19.48% in the last year.
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)31.15%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%23.21%
Revenue 1Y (TTM)19.48%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%19.35%
3.2 Future
Based on estimates for the next years, APPF will show a very strong growth in Earnings Per Share. The EPS will grow by 22.25% on average per year.
The Revenue is expected to grow by 18.25% on average over the next years. This is quite good.
EPS Next Y24.76%
EPS Next 2Y21.45%
EPS Next 3Y22.25%
EPS Next 5YN/A
Revenue Next Year19.4%
Revenue Next 2Y18.49%
Revenue Next 3Y18.25%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 50.06, APPF can be considered very expensive at the moment.
APPF's Price/Earnings ratio is in line with the industry average.
APPF is valuated expensively when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 37.11, the valuation of APPF can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as APPF.
The average S&P500 Price/Forward Earnings ratio is at 23.23. APPF is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.06 | ||
| Fwd PE | 37.11 |
4.2 Price Multiples
63.51% of the companies in the same industry are more expensive than APPF, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, APPF is valued a bit cheaper than the industry average as 62.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.79 | ||
| EV/EBITDA | 52.44 |
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.
APPF's earnings are expected to grow with 22.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)0.84
EPS Next 2Y21.45%
EPS Next 3Y22.25%
5. Dividend
5.1 Amount
APPF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
240.31
-0.07 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.33%
Inst Owner Change-0.07%
Ins Owners2.32%
Ins Owner Change-1.22%
Market Cap8.62B
Revenue(TTM)862.67M
Net Income(TTM)203.10M
Analysts80
Price Target343.35 (42.88%)
Short Float %4.96%
Short Ratio3.52
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)1
Avg EPS beat(2)1.15%
Min EPS beat(2)-3.12%
Max EPS beat(2)5.42%
EPS beat(4)2
Avg EPS beat(4)5.13%
Min EPS beat(4)-4.25%
Max EPS beat(4)22.46%
EPS beat(8)6
Avg EPS beat(8)14.15%
EPS beat(12)10
Avg EPS beat(12)44.8%
EPS beat(16)11
Avg EPS beat(16)-120.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-0.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)1.3%
Revenue beat(8)5
Avg Revenue beat(8)1.11%
Revenue beat(12)9
Avg Revenue beat(12)1.4%
Revenue beat(16)12
Avg Revenue beat(16)1.21%
PT rev (1m)10.12%
PT rev (3m)53.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.95%
EPS NY rev (1m)0%
EPS NY rev (3m)4.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.06 | ||
| Fwd PE | 37.11 | ||
| P/S | 9.99 | ||
| P/FCF | 47.79 | ||
| P/OCF | 46.46 | ||
| P/B | 18.91 | ||
| P/tB | 28.44 | ||
| EV/EBITDA | 52.44 |
EPS(TTM)4.8
EY2%
EPS(NY)6.48
Fwd EY2.69%
FCF(TTM)5.03
FCFY2.09%
OCF(TTM)5.17
OCFY2.15%
SpS24.06
BVpS12.71
TBVpS8.45
PEG (NY)2.02
PEG (5Y)0.84
Graham Number37.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.79% | ||
| ROE | 44.57% | ||
| ROCE | 27.97% | ||
| ROIC | 22.1% | ||
| ROICexc | 29.67% | ||
| ROICexgc | 50.33% | ||
| OM | 16.21% | ||
| PM (TTM) | 23.54% | ||
| GM | 63.93% | ||
| FCFM | 20.9% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 24.67% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.31% | ||
| Profit Quality | 88.76% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 49.74 |
F-Score6
WACC11.02%
ROIC/WACC2.01
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)31.15%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%23.21%
EPS Next Y24.76%
EPS Next 2Y21.45%
EPS Next 3Y22.25%
EPS Next 5YN/A
Revenue 1Y (TTM)19.48%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%19.35%
Revenue Next Year19.4%
Revenue Next 2Y18.49%
Revenue Next 3Y18.25%
Revenue Next 5YN/A
EBIT growth 1Y36.33%
EBIT growth 3YN/A
EBIT growth 5Y77.49%
EBIT Next Year30.27%
EBIT Next 3Y25.71%
EBIT Next 5YN/A
FCF growth 1Y15307%
FCF growth 3Y307.73%
FCF growth 5Y79.14%
OCF growth 1Y1185.13%
OCF growth 3Y74.53%
OCF growth 5Y37.07%