APPFOLIO INC - A (APPF) Stock Fundamental Analysis
NASDAQ:APPF - Nasdaq - US03783C1009 - Common Stock - Currency: USD
APPF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 would make APPF suitable 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.
In the past 5 years APPF always reported a positive cash flow from operatings.
1.2 Ratios
APPF has a Return On Assets of 32.56%. This is amongst the best in the industry. APPF outperforms 98.23% of its industry peers.
With an excellent Return On Equity value of 39.30%, APPF belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.02%, APPF belongs to the best of the industry, outperforming 94.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.56% | ||
| ROE | 39.3% | ||
| ROIC | 19.02% |
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
With an excellent Profit Margin value of 25.69%, APPF belongs to the best of the industry, outperforming 90.46% of the companies in the same industry.
In the last couple of years the Profit Margin of APPF has grown nicely.
APPF's Operating Margin of 17.08% is amongst the best of the industry. APPF outperforms 84.45% 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 64.48%, APPF is in line with its industry, outperforming 45.94% 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 | 17.08% | ||
| PM (TTM) | 25.69% | ||
| GM | 64.48% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for APPF has been increased compared to 1 year ago.
The number of shares outstanding for APPF has been increased compared to 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
APPF has an Altman-Z score of 47.64. This indicates that APPF is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of APPF (47.64) is better than 98.23% of its industry peers.
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 | 47.64 |
ROIC/WACC1.74
WACC10.9%
2.3 Liquidity
APPF has a Current Ratio of 5.30. This indicates that APPF is financially healthy and has no problem in meeting its short term obligations.
APPF has a better Current ratio (5.30) than 85.51% of its industry peers.
APPF has a Quick Ratio of 5.30. This indicates that APPF is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of APPF (5.30) is better than 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.3 | ||
| Quick Ratio | 5.3 |
3. Growth
3.1 Past
APPF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.24%, which is quite impressive.
The Earnings Per Share has been growing by 59.90% on average over the past years. This is a very strong growth
The Revenue has grown by 28.01% in the past year. This is a very strong growth!
The Revenue has been growing by 25.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)158.24%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%4.55%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%18.53%
3.2 Future
The Earnings Per Share is expected to grow by 21.68% on average over the next years. This is a very strong growth
APPF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.43% yearly.
EPS Next Y23.1%
EPS Next 2Y21.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.73%
Revenue Next 2Y18.02%
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 49.84, 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 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 40.49, the valuation of APPF can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APPF is on the same level as its industry peers.
APPF is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.84 | ||
| Fwd PE | 40.49 |
4.2 Price Multiples
66.43% of the companies in the same industry are more expensive than APPF, based on the Enterprise Value to EBITDA ratio.
APPF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44 | ||
| EV/EBITDA | 48.55 |
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 21.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)0.83
EPS Next 2Y21.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for APPF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
218.78
+0.86 (+0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.87%
Inst Owner Change0%
Ins Owners2.49%
Ins Owner Change2.68%
Market Cap7.96B
Analysts78.57
Price Target274.81 (25.61%)
Short Float %4.18%
Short Ratio3.04
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)9.11%
Min EPS beat(2)-4.25%
Max EPS beat(2)22.46%
EPS beat(4)3
Avg EPS beat(4)12.33%
Min EPS beat(4)-4.25%
Max EPS beat(4)22.46%
EPS beat(8)7
Avg EPS beat(8)35.3%
EPS beat(12)10
Avg EPS beat(12)-148.25%
EPS beat(16)10
Avg EPS beat(16)-128.78%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)1.3%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)2.84%
Revenue beat(8)7
Avg Revenue beat(8)1.81%
Revenue beat(12)10
Avg Revenue beat(12)1.75%
Revenue beat(16)12
Avg Revenue beat(16)1.12%
PT rev (1m)0%
PT rev (3m)4.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.84 | ||
| Fwd PE | 40.49 | ||
| P/S | 10.03 | ||
| P/FCF | 44 | ||
| P/OCF | 42.32 | ||
| P/B | 15.34 | ||
| P/tB | 22.22 | ||
| EV/EBITDA | 48.55 |
EPS(TTM)4.39
EY2.01%
EPS(NY)5.4
Fwd EY2.47%
FCF(TTM)4.97
FCFY2.27%
OCF(TTM)5.17
OCFY2.36%
SpS21.82
BVpS14.27
TBVpS9.85
PEG (NY)2.16
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.56% | ||
| ROE | 39.3% | ||
| ROCE | 24.08% | ||
| ROIC | 19.02% | ||
| ROICexc | 37.58% | ||
| ROICexgc | 86.24% | ||
| OM | 17.08% | ||
| PM (TTM) | 25.69% | ||
| GM | 64.48% | ||
| FCFM | 22.79% |
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 Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.39% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.63% | ||
| Profit Quality | 88.69% | ||
| Current Ratio | 5.3 | ||
| Quick Ratio | 5.3 | ||
| Altman-Z | 47.64 |
F-Score6
WACC10.9%
ROIC/WACC1.74
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)158.24%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%4.55%
EPS Next Y23.1%
EPS Next 2Y21.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.01%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%18.53%
Revenue Next Year18.73%
Revenue Next 2Y18.02%
Revenue Next 3Y8.43%
Revenue Next 5YN/A
EBIT growth 1Y2489.12%
EBIT growth 3YN/A
EBIT growth 5Y77.49%
EBIT Next Year30.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y289.89%
FCF growth 3Y307.73%
FCF growth 5Y79.14%
OCF growth 1Y212.13%
OCF growth 3Y74.53%
OCF growth 5Y37.07%