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 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. With these ratings, APPF could be worth investigating further 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.
Of the past 5 years APPF 4 years were profitable.
Each year in the past 5 years APPF had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 34.84%, APPF belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.58%, APPF belongs to the top of the industry, outperforming 94.68% 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 94.33% 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
APPF's Profit Margin of 23.87% is amongst the best of the industry. APPF outperforms 91.84% of its industry peers.
APPF's Profit Margin has improved in the last couple of years.
APPF's Operating Margin of 16.41% is amongst the best of the industry. APPF outperforms 84.04% of its industry peers.
APPF's Operating Margin has improved in the last couple of years.
The Gross Margin of APPF (63.99%) is comparable to the rest of the industry.
APPF's Gross Margin has been stable in the last couple of years.
| 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.
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
APPF has an Altman-Z score of 54.22. This indicates that APPF is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of APPF (54.22) is better than 97.87% 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 | 54.22 |
ROIC/WACC1.95
WACC10.86%
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
APPF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.90%, 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 22.73% 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)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 Year17.67%
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.
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 53.03, the valuation of APPF can be described as expensive.
APPF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of APPF to the average of the S&P500 Index (27.29), we can say APPF is valued expensively.
APPF is valuated quite expensively with a Price/Forward Earnings ratio of 39.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APPF is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, APPF is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.03 | ||
| Fwd PE | 39.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APPF is valued a bit cheaper than the industry average as 64.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, APPF is valued a bit cheaper than 62.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.69 | ||
| EV/EBITDA | 53.72 |
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.
A more expensive valuation may be justified as APPF's earnings are expected to grow with 18.13% in the coming years.
PEG (NY)2.73
PEG (5Y)0.89
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 |
240.77
+5.28 (+2.24%)
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 Cap8.67B
Analysts75.38
Price Target223.05 (-7.36%)
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 | 53.03 | ||
| Fwd PE | 39.3 | ||
| P/S | 10.52 | ||
| P/FCF | 48.69 | ||
| P/OCF | 47.23 | ||
| P/B | 18.77 | ||
| P/tB | 28.39 | ||
| EV/EBITDA | 53.72 |
EPS(TTM)4.54
EY1.89%
EPS(NY)6.13
Fwd EY2.54%
FCF(TTM)4.94
FCFY2.05%
OCF(TTM)5.1
OCFY2.12%
SpS22.88
BVpS12.83
TBVpS8.48
PEG (NY)2.73
PEG (5Y)0.89
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 | 54.22 |
F-Score6
WACC10.86%
ROIC/WACC1.95
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%