APPFOLIO INC - A (APPF) Stock Fundamental Analysis
NASDAQ:APPF - Nasdaq - US03783C1009 - Common Stock - Currency: USD
Taking everything into account, APPF scores 7 out of 10 in our fundamental rating. APPF was compared to 281 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 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
In the past year APPF was profitable.
APPF had a positive operating cash flow in the past year.
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 (32.56%) is better than 98.59% of its industry peers.
APPF has a Return On Equity of 39.30%. This is amongst the best in the industry. APPF outperforms 93.29% of its industry peers.
APPF has a better Return On Invested Capital (19.02%) than 94.70% of its industry peers.
| 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 91.52% of the companies in the same industry.
In the last couple of years the Profit Margin of APPF has grown nicely.
Looking at the Operating Margin, with a value of 17.08%, APPF belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
APPF's Operating Margin has improved in the last couple of years.
APPF has a Gross Margin of 64.48%. This is comparable to the rest of the industry: APPF outperforms 45.94% of 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), APPF is creating some 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
APPF has an Altman-Z score of 48.07. This indicates that APPF is financially healthy and has little risk of bankruptcy at the moment.
APPF's Altman-Z score of 48.07 is amongst the best of the industry. APPF outperforms 97.88% 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 | 48.07 |
ROIC/WACC1.36
WACC13.94%
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's Current ratio of 5.30 is amongst the best of the industry. APPF outperforms 89.40% of its industry peers.
A Quick Ratio of 5.30 indicates that APPF has no problem at all paying its short term obligations.
The Quick ratio of APPF (5.30) is better than 89.40% 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.
APPF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.90% yearly.
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
Based on estimates for the next years, APPF will show a very strong growth in Earnings Per Share. The EPS will grow by 21.68% on average per year.
The Revenue is expected to grow by 8.43% on average over the next years. This is quite good.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 50.32, the valuation of APPF can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of APPF is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.35. APPF is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 40.88, the valuation of APPF can be described as expensive.
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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.32 | ||
| Fwd PE | 40.88 |
4.2 Price Multiples
67.14% 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 ratio is a bit cheaper when compared to the industry. APPF is cheaper than 61.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.43 | ||
| EV/EBITDA | 49.05 |
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 21.68% in the coming years.
PEG (NY)2.18
PEG (5Y)0.84
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 |
220.89
+0.78 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.87%
Inst Owner Change-0.19%
Ins Owners2.49%
Ins Owner Change2.31%
Market Cap8.04B
Analysts78.57
Price Target274.81 (24.41%)
Short Float %3.76%
Short Ratio3.11
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)4.5%
PT rev (3m)3.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)-3.37%
EPS NY rev (3m)-3.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.32 | ||
| Fwd PE | 40.88 | ||
| P/S | 10.12 | ||
| P/FCF | 44.43 | ||
| P/OCF | 42.73 | ||
| P/B | 15.48 | ||
| P/tB | 22.43 | ||
| EV/EBITDA | 49.05 |
EPS(TTM)4.39
EY1.99%
EPS(NY)5.4
Fwd EY2.45%
FCF(TTM)4.97
FCFY2.25%
OCF(TTM)5.17
OCFY2.34%
SpS21.82
BVpS14.27
TBVpS9.85
PEG (NY)2.18
PEG (5Y)0.84
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 | 48.07 |
F-Score6
WACC13.94%
ROIC/WACC1.36
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%