APPN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. APPN has a bad profitability rating. Also its financial health evaluation is rather negative. APPN is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year APPN was profitable.
APPN had a positive operating cash flow in the past year.
In the past 5 years APPN always reported negative net income.
In the past 5 years APPN reported 4 times negative operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -1.20%, APPN is in line with its industry, outperforming 52.16% of the companies in the same industry.
The Return On Invested Capital of APPN (2.73%) is better than 68.70% of its industry peers.

		Industry Rank	Sector Rank
ROA	-1.2%
ROE	N/A
ROIC	2.73%

ROA(3y)-19.34%

ROA(5y)-16.42%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a decent Operating Margin value of 1.21%, APPN is doing good in the industry, outperforming 60.79% of the companies in the same industry.
With a decent Gross Margin value of 76.28%, APPN is doing good in the industry, outperforming 70.50% of the companies in the same industry.
APPN's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	1.21%
PM (TTM)	N/A
GM	76.28%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.76%

GM growth 5Y3.42%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APPN is destroying value.
Compared to 1 year ago, APPN has more shares outstanding
APPN has more shares outstanding than it did 5 years ago.
APPN has a worse debt/assets ratio than last year.

2.2 Solvency

APPN has an Altman-Z score of 1.94. This is not the best score and indicates that APPN is in the grey zone with still only limited risk for bankruptcy at the moment.
APPN has a Altman-Z score (1.94) which is comparable to the rest of the industry.
APPN has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as APPN would need 3.38 years to pay back of all of its debts.
APPN has a better Debt to FCF ratio (3.38) than 62.95% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	3.38
Altman-Z	1.94

ROIC/WACC0.24

WACC11.3%

2.3 Liquidity

APPN has a Current Ratio of 1.19. This is a normal value and indicates that APPN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of APPN (1.19) is worse than 66.19% of its industry peers.
A Quick Ratio of 1.19 indicates that APPN should not have too much problems paying its short term obligations.
APPN has a Quick ratio of 1.19. This is in the lower half of the industry: APPN underperforms 65.11% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.19
Quick Ratio	1.19

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 255.17% over the past year.
The Revenue has grown by 15.97% in the past year. This is quite good.
APPN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.83% yearly.

EPS 1Y (TTM)255.17%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%113.33%

Revenue 1Y (TTM)15.97%

Revenue growth 3Y18.66%

Revenue growth 5Y18.83%

Sales Q2Q%21.39%

3.2 Future

APPN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.51% yearly.
Based on estimates for the next years, APPN will show a quite strong growth in Revenue. The Revenue will grow by 14.21% on average per year.

EPS Next Y258%

EPS Next 2Y106%

EPS Next 3Y73.04%

EPS Next 5Y46.51%

Revenue Next Year16.08%

Revenue Next 2Y14.06%

Revenue Next 3Y13.18%

Revenue Next 5Y14.21%

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 66.80, APPN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of APPN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.25, APPN is valued quite expensively.
With a Price/Forward Earnings ratio of 38.28, APPN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APPN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, APPN is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	66.8
Fwd PE	38.28

4.2 Price Multiples

APPN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, APPN is valued a bit cheaper than 68.35% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	30.55
EV/EBITDA	120.48

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as APPN's earnings are expected to grow with 73.04% in the coming years.