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APX

AppenASX:APX Stock Report

Market Cap

AU$1.3b

7D

12.5%

1Y

-69.0%

Updated

22 Oct, 2021

Data

Company Financials +
APX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

APX Overview

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.

Rewards

Trading at 35.6% below our estimate of its fair value

Earnings are forecast to grow 20.62% per year

Risk Analysis

APX passed our risk checks.

Appen Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Appen
Historical stock prices
Current Share PriceAU$10.86
52 Week HighAU$8.36
52 Week LowAU$36.50
Beta0.79
1 Month Change14.56%
3 Month Change-15.02%
1 Year Change-68.97%
3 Year Change4.93%
5 Year Change260.80%
Change since IPO1,968.57%

Recent News & Updates

Sep 01
We Think You Can Look Beyond Appen's (ASX:APX) Lackluster Earnings

We Think You Can Look Beyond Appen's (ASX:APX) Lackluster Earnings

Soft earnings didn't appear to concern Appen Limited's ( ASX:APX ) shareholders over the last week. We think that the...

Shareholder Returns

APXAU ITAU Market
7D12.5%1.6%0.7%
1Y-69.0%8.6%21.4%

Return vs Industry: APX underperformed the Australian IT industry which returned 8.6% over the past year.

Return vs Market: APX underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is APX's price volatile compared to industry and market?
APX volatility
APX Beta0.79
Industry Beta1.68
Market Beta1

Stable Share Price: APX is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: APX's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996850Mark Ronald Brayanhttps://www.appen.com

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 segments, Relevance and Speech and Image. The Relevance segment offers annotated training data, which is used as an input to enhance the performance of search engines, social media, and e-commerce applications.

Appen Fundamentals Summary

How do Appen's earnings and revenue compare to its market cap?
APX fundamental statistics
Market CapUS$982.53m
Earnings (TTM)US$29.65m
Revenue (TTM)US$445.77m

33.8x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APX income statement (TTM)
RevenueUS$445.77m
Cost of RevenueUS$345.54m
Gross ProfitUS$100.23m
ExpensesUS$70.57m
EarningsUS$29.65m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin22.48%
Net Profit Margin6.65%
Debt/Equity Ratio0%

How did APX perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is Appen undervalued compared to its fair value and its price relative to the market?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APX (A$10.86) is trading below our estimate of fair value (A$16.86)

Significantly Below Fair Value: APX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: APX is good value based on its PE Ratio (33.8x) compared to the Australian IT industry average (43.3x).

PE vs Market: APX is poor value based on its PE Ratio (33.8x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: APX is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: APX is good value based on its PB Ratio (2.7x) compared to the AU IT industry average (3.2x).


Future Growth

How is Appen forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APX's forecast earnings growth (20.6% per year) is above the savings rate (1.9%).

Earnings vs Market: APX's earnings (20.6% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APX's revenue (9.5% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: APX's revenue (9.5% 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 (11.3%).


Past Performance

How has Appen performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APX has high quality earnings.

Growing Profit Margin: APX's current net profit margins (6.7%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: APX's earnings have grown significantly by 29.4% 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 (-3.7%) over the past year, making it difficult to compare to the IT industry average (-11.2%).


Return on Equity

High ROE: APX's Return on Equity (8%) is considered low.


Financial Health

How is Appen's financial position?


Financial Position Analysis

Short Term Liabilities: APX's short term assets ($151.3M) exceed its short term liabilities ($52.9M).

Long Term Liabilities: APX's short term assets ($151.3M) exceed its long term liabilities ($23.0M).


Debt to Equity History and Analysis

Debt Level: APX is debt free.

Reducing Debt: APX has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.

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.


Balance Sheet


Dividend

What is Appen current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APX's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: APX's dividend (0.88%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Mark Ronald Brayan (57 yo)

6.25yrs

Tenure

US$2,402,222

Compensation

Mr. Mark Ronald Gerard Brayan, MBA, BSurv (Hons), 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 Mana...


CEO Compensation Analysis

Compensation vs Market: Mark Ronald's total compensation ($USD2.40M) is above average for companies of similar size in the Australian market ($USD973.44K).

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.


Leadership Team

Experienced Management: APX's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: APX's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Appen Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Appen Limited
  • Ticker: APX
  • Exchange: ASX
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$1.312b
  • Shares outstanding: 123.07m
  • Website: https://www.appen.com

Number of Employees


Location

  • Appen Limited
  • 9 Help Street
  • Level 6
  • Chatswood
  • New South Wales
  • 2067
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:02
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.