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 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.
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
APPF has a better Return On Assets (34.84%) 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 94.66% of the companies in the same industry.
The Return On Invested Capital of APPF (21.12%) is better than 94.31% 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 Profit Margin of 23.87%. This is amongst the best in the industry. APPF outperforms 91.81% of its industry peers.
In the last couple of years the Profit Margin of APPF has grown nicely.
APPF has a better Operating Margin (16.41%) than 84.34% of its industry peers.
APPF's Operating Margin has improved in the last couple of years.
APPF's Gross Margin of 63.99% is in line compared to the rest of the industry. APPF outperforms 44.13% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APPF is creating value.
The number of shares outstanding for APPF has been increased compared to 1 year ago.
APPF has more shares outstanding than it did 5 years ago.
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 59.83. This indicates that APPF is financially healthy and has little risk of bankruptcy at the moment.
APPF has a better Altman-Z score (59.83) than 97.51% of its industry peers.
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 | 59.83 |
ROIC/WACC2.04
WACC10.33%
2.3 Liquidity
A Current Ratio of 4.64 indicates that APPF has no problem at all paying its short term obligations.
APPF has a better Current ratio (4.64) than 86.83% of its industry peers.
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.
The Quick ratio of APPF (4.64) is better than 86.83% 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 31.15%, 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
Looking at the last year, APPF shows a very strong growth in Revenue. The Revenue has grown by 28.01%.
APPF shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.41% yearly.
EPS 1Y (TTM)31.15%
EPS 3Y426.96%
EPS 5Y59.9%
EPS Q2Q%23.21%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%19.36%
3.2 Future
Based on estimates for the next years, APPF will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.13% on average per year.
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 Y19.39%
EPS Next 2Y18.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.82%
Revenue Next 2Y17.02%
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 66.49, APPF can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as APPF.
APPF's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.82.
The Price/Forward Earnings ratio is 52.10, which means the current valuation is very expensive for APPF.
APPF's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of APPF to the average of the S&P500 Index (36.21), we can say APPF is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.49 | ||
| Fwd PE | 52.1 |
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 62.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APPF is valued a bit cheaper than the industry average as 60.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.54 | ||
| EV/EBITDA | 59.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
APPF has a very decent profitability rating, which 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)3.43
PEG (5Y)1.11
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 |
319.15
+51.77 (+19.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change-0.42%
Ins Owners3.32%
Ins Owner Change4.47%
Market Cap11.50B
Analysts75.38
Price Target223.05 (-30.11%)
Short Float %6.17%
Short Ratio5.3
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)0%
PT rev (3m)-12.47%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-5.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.49 | ||
| Fwd PE | 52.1 | ||
| P/S | 13.95 | ||
| P/FCF | 64.54 | ||
| P/OCF | 62.61 | ||
| P/B | 24.88 | ||
| P/tB | 37.63 | ||
| EV/EBITDA | 59.92 |
EPS(TTM)4.8
EY1.5%
EPS(NY)6.13
Fwd EY1.92%
FCF(TTM)4.94
FCFY1.55%
OCF(TTM)5.1
OCFY1.6%
SpS22.88
BVpS12.83
TBVpS8.48
PEG (NY)3.43
PEG (5Y)1.11
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 | 59.83 |
F-Score6
WACC10.33%
ROIC/WACC2.04
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 Y19.39%
EPS Next 2Y18.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.01%
Revenue growth 3Y30.25%
Revenue growth 5Y25.41%
Sales Q2Q%19.36%
Revenue Next Year17.82%
Revenue Next 2Y17.02%
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%