Appen Limited, together with its subsidiaries, provides data solutions and services for machine learning and artificial intelligence applications for technology companies, auto manufacturers, and government agencies in Australia, the United States, and internationally.
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Appen's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: APX's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: APX underperformed the Australian IT industry which returned 21.3% over the past year.
Return vs Market: APX exceeded the Australian Market which returned -10.3% over the past year.
Price Volatility Vs. Market
How volatile is Appen's share price compared to the market and industry in the last 5 years?
Simply Wall St News
11 months ago | Simply Wall StWhy Appen Limited's (ASX:APX) High P/E Ratio Isn't Necessarily A Bad Thing
11 months ago | Simply Wall StShould You Be Concerned About Appen Limited's (ASX:APX) Historical Volatility?
1 year ago | Simply Wall StIs Appen Limited's (ASX:APX) Balance Sheet Strong Enough To Weather A Storm?
Is Appen undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: APX (A$30.8) is trading below our estimate of fair value (A$44.79)
Significantly Below Fair Value: APX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: APX is poor value based on its PE Ratio (87.3x) compared to the IT industry average (22.7x).
PE vs Market: APX is poor value based on its PE Ratio (87.3x) compared to the Australian market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: APX is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: APX is overvalued based on its PB Ratio (7.7x) compared to the AU IT industry average (1.9x).
How is Appen forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: APX's forecast earnings growth (26.5% per year) is above the savings rate (2.3%).
Earnings vs Market: APX's earnings (26.5% per year) are forecast to grow faster than the Australian market (15% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: APX's revenue (17.9% per year) is forecast to grow faster than the Australian market (4.3% per year).
High Growth Revenue: APX's revenue (17.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: APX's Return on Equity is forecast to be low in 3 years time (19.3%).
How has Appen performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: APX has high quality earnings.
Growing Profit Margin: APX's current net profit margins (7.8%) are lower than last year (11.5%).
Past Earnings Growth Analysis
Earnings Trend: APX's earnings have grown significantly by 48.4% per year over the past 5 years.
Accelerating Growth: APX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: APX had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the IT industry average (-0.3%).
Return on Equity
High ROE: APX's Return on Equity (8.6%) is considered low.
How is Appen's financial position?
Financial Position Analysis
Short Term Liabilities: APX's short term assets (A$202.6M) exceed its short term liabilities (A$128.8M).
Long Term Liabilities: APX's short term assets (A$202.6M) exceed its long term liabilities (A$23.6M).
Debt to Equity History and Analysis
Debt Level: APX is debt free.
Reducing Debt: APX had no debt 5 years ago.
Debt Coverage: APX has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: APX has no debt, therefore coverage of interest payments is not a concern.
What is Appen's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: APX's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.61%).
High Dividend: APX's dividend (0.32%) is low compared to the top 25% of dividend payers in the Australian market (6.69%).
Stability and Growth of Payments
Stable Dividend: APX is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: APX is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: APX is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of APX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Ronald Brayan (55yo)
Mr. Mark Ronald Gerard Brayan, MBA, has been the Chief Executive Officer and Managing Director of Appen Limited since July 13, 2015. Mr. Brayan served as the Chief Executive Officer and Managing Director ...
CEO Compensation Analysis
Compensation vs Market: Mark Ronald's total compensation ($USD1.15M) is below average for companies of similar size in the Australian market ($USD2.24M).
Compensation vs Earnings: Mark Ronald's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|MD, CEO & Executive Director||4.83yrs||AU$1.73m||0.42% A$15.8m|
|Chief Financial Officer||4.33yrs||AU$1.06m||0.090% A$3.4m|
|Senior Vice President of Client Services||1.83yrs||AU$659.64k||0.0070% A$262.3k|
|Chief Technology Officer||1.42yrs||no data||no data|
|Senior Vice President of Sales & Marketing||1.33yrs||no data||no data|
|Senior Vice President of HR & Crowd Sourcing Operations||3.17yrs||no data||no data|
|Senior Vice President of China||1.33yrs||no data||no data|
|Senior Vice President of Figure Eight Federal||no data||no data||no data|
|Company Secretary||1.17yrs||no data||no data|
Experienced Management: APX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
|MD, CEO & Executive Director||4.83yrs||AU$1.73m||0.42% A$15.8m|
|Non-Executive Chairman||no data||AU$116.30k||9.09% A$340.7m|
|Independent Non-Executive Director||7.33yrs||AU$89.79k||0.50% A$18.7m|
|Independent Non-Executive Director||5yrs||AU$76.25k||0.041% A$1.6m|
|Independent Non-Executive Director||5yrs||AU$76.25k||0.041% A$1.5m|
|Independent Non-Executive Director||5.58yrs||AU$91.25k||0.14% A$5.3m|
|Independent Non Executive Director||0.17yr||no data||no data|
Experienced Board: APX's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Appen Limited's company bio, employee growth, exchange listings and data sources
- Name: Appen Limited
- Ticker: APX
- Exchange: ASX
- Founded: 1996
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: AU$3.747b
- Shares outstanding: 121.65m
- Website: https://www.appen.com
Number of Employees
- Appen Limited
- 9 Help Street
- Level 6
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|APX||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jan 2015|
|APX||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jan 2015|
|APPE.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jan 2015|
|433||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jan 2015|
Appen Limited, together with its subsidiaries, provides data solutions and services for machine learning and artificial intelligence applications for technology companies, auto manufacturers, and government agencies in Australia, the United States, and internationally. It operates through two divisions, Content Relevance and Language Resources. The Content Relevance division offers annotated data used in search technology embedded in Web, e-commerce, and social engagement for enhancing relevance and accuracy of search engines, social media applications, and e-commerce. The Language Resources division provides annotated speech, natural language, and image data used in speech and image recognizers, machine translation, speech synthesizers, and other machine-learning technologies. The company was formerly known as Appen Holdings Pty Limited and changed its name to Appen Limited in October 2014. Appen Limited was founded in 1996 and is headquartered in Chatswood, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/31 10:50|
|End of Day Share Price||2020/05/29 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.