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Appen

ASX:APX
Snowflake Description

Solid track record with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
APX
ASX
A$4B
Market Cap
  1. Home
  2. AU
  3. Software
Company description

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. The last earnings update was 146 days ago. More info.


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APX Share Price and Events
7 Day Returns
-1.1%
ASX:APX
-0.6%
AU IT
0%
AU Market
1 Year Returns
142.8%
ASX:APX
10.1%
AU IT
4.8%
AU Market
APX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Appen (APX) -1.1% 6.9% 26.9% 142.8% 856.5% -
AU IT -0.6% 2.6% -0.2% 10.1% 47.6% 44.2%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • APX outperformed the IT industry which returned 10.1% over the past year.
  • APX outperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
APX
Industry
5yr Volatility vs Market

APX Value

 Is Appen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Appen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Appen.

ASX:APX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:APX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.987 (1 + (1- 30%) (1.55%))
0.999
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.999 * 5.96%)
8.26%

Discounted Cash Flow Calculation for ASX:APX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Appen is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:APX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.26%)
2020 -51.40 Analyst x1 -47.48
2021 57.40 Analyst x1 48.97
2022 67.61 Est @ 17.79% 53.28
2023 76.50 Est @ 13.15% 55.68
2024 84.07 Est @ 9.9% 56.52
2025 90.48 Est @ 7.62% 56.19
2026 95.93 Est @ 6.03% 55.03
2027 100.65 Est @ 4.91% 53.33
2028 104.81 Est @ 4.13% 51.29
2029 108.57 Est @ 3.59% 49.07
Present value of next 10 years cash flows A$431.89
ASX:APX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$108.57 × (1 + 2.31%) ÷ (8.26% – 2.31%)
A$1,866.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,866.24 ÷ (1 + 8.26%)10
A$843.59
ASX:APX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$431.89 + A$843.59
A$1,275.48
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,275.48 / 120.98
A$10.54
ASX:APX Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$10.54
Current discount Discount to share price of A$30.13
= -1 x (A$30.13 - A$10.54) / A$10.54
-185.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Appen is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Appen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Appen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:APX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.39
ASX:APX Share Price ** ASX (2019-07-19) in AUD A$30.13
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 20.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Appen.

ASX:APX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:APX Share Price ÷ EPS (both in AUD)

= 30.13 ÷ 0.39

76.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Appen is overvalued based on earnings compared to the AU IT industry average.
  • Appen is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Appen's expected growth come at a high price?
Raw Data
ASX:APX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 76.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
27.4%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:APX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 76.77x ÷ 27.4%

2.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Appen is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Appen's assets?
Raw Data
ASX:APX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.31
ASX:APX Share Price * ASX (2019-07-19) in AUD A$30.13
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.99x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:APX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:APX Share Price ÷ Book Value per Share (both in AUD)

= 30.13 ÷ 1.31

23.04x

* Primary Listing of Appen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Appen is overvalued based on assets compared to the AU IT industry average.
X
Value checks
We assess Appen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Appen has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

APX Future Performance

 How is Appen expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Appen expected to grow at an attractive rate?
  • Appen's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Appen's earnings growth is expected to exceed the Australia market average.
  • Appen's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:APX Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:APX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 27.4%
ASX:APX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 18.5%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 26.1%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:APX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:APX Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,020 1
2022-12-31 888 1
2021-12-31 766 91 91 4
2020-12-31 652 72 67 4
2019-12-31 529 45 44 4
ASX:APX Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 364 47 42
2018-09-30 305 33 31
2018-06-30 245 19 20
2018-03-31 206 16 17
2017-12-31 167 13 14
2017-09-30 149 16 14
2017-06-30 132 18 13
2017-03-31 121 15 12
2016-12-31 111 13 10
2016-09-30 106 12 11
2016-06-30 100 12 11
2016-03-31 92 8 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Appen's earnings are expected to grow significantly at over 20% yearly.
  • Appen's revenue is expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:APX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Appen Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:APX Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.71 0.73 0.69 2.00
2020-12-31 0.50 0.54 0.47 2.00
2019-12-31 0.35 0.36 0.35 2.00
ASX:APX Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.39
2018-09-30 0.30
2018-06-30 0.20
2018-03-31 0.17
2017-12-31 0.15
2017-09-30 0.14
2017-06-30 0.14
2017-03-31 0.12
2016-12-31 0.11
2016-09-30 0.11
2016-06-30 0.11
2016-03-31 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Appen is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Appen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Appen has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

APX Past Performance

  How has Appen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Appen's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Appen has delivered over 20% year on year earnings growth in the past 5 years.
  • Appen's 1-year earnings growth exceeds its 5-year average (192.2% vs 50.7%)
  • Appen's earnings growth has exceeded the AU IT industry average in the past year (192.2% vs 50.5%).
Earnings and Revenue History
Appen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Appen Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:APX Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 364.27 41.73 8.22
2018-09-30 304.76 30.97 7.86
2018-06-30 245.26 20.20 7.50
2018-03-31 205.91 17.24 5.86
2017-12-31 166.56 14.28 4.22
2017-09-30 149.09 13.74 3.98
2017-06-30 131.62 13.20 3.75
2017-03-31 121.31 11.84 3.70
2016-12-31 111.00 10.49 3.65
2016-09-30 105.66 10.76 3.62
2016-06-30 100.32 11.04 3.59
2016-03-31 91.52 9.67 3.25
2015-12-31 82.72 8.31 2.91
2015-09-30 71.31 5.26 2.83
2015-06-30 59.90 2.21 2.75
2015-03-31 55.45 1.91 2.69
2014-12-31 51.01 1.62 2.62
2013-12-31 60.71 1.59 2.18
2012-12-31 33.27 -1.93 13.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Appen has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Appen used its assets more efficiently than the AU IT industry average last year based on Return on Assets.
  • Appen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Appen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Appen has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

APX Health

 How is Appen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Appen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Appen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Appen's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Appen's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Appen Company Filings, last reported 6 months ago.

ASX:APX Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 139.40 56.33 40.05
2018-09-30 139.40 56.33 40.05
2018-06-30 105.85 64.90 23.59
2018-03-31 105.85 64.90 23.59
2017-12-31 93.41 67.88 24.02
2017-09-30 93.41 67.88 24.02
2017-06-30 39.09 0.01 19.99
2017-03-31 39.09 0.01 19.99
2016-12-31 35.40 0.00 16.47
2016-09-30 35.40 0.00 16.47
2016-06-30 31.30 0.01 13.07
2016-03-31 31.30 0.01 13.07
2015-12-31 28.66 0.01 12.73
2015-09-30 28.66 0.01 12.73
2015-06-30 23.50 0.00 5.20
2015-03-31 23.50 0.00 5.20
2014-12-31 19.65 0.00 8.65
2013-12-31 8.14 3.08 5.77
2012-12-31 5.87 1.50 1.22
  • Appen's level of debt (40.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37.6% vs 40.4% today).
  • Debt is well covered by operating cash flow (83.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.6x coverage).
X
Financial health checks
We assess Appen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Appen has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

APX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.27%
Current annual income from Appen dividends. Estimated to be 0.45% next year.
If you bought A$2,000 of Appen shares you are expected to receive A$5 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Appen's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • Appen's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:APX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:APX Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.17 6.00
2020-12-31 0.13 6.00
2019-12-31 0.10 6.00
ASX:APX Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.080 0.317
2018-08-27 0.080 0.594
2018-02-20 0.060 0.558
2017-08-28 0.060 0.945
2017-02-27 0.050 1.544
2016-02-29 0.060 2.397
2015-08-27 0.024 1.818
2015-02-26 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Appen is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • Appen is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Appen's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Appen's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of Appen's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Appen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Appen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Appen has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

APX Management

 What is the CEO of Appen's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Ronald Brayan
COMPENSATION A$1,732,620
AGE 55
TENURE AS CEO 4 years
CEO Bio

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 Mine Site Technologies Pty Limited (MST) since December 11, 2013. Mr. Brayan served as Chief Executive Officer of Integrated Research Limited since September 2007 and as its Managing Director until August 27, 2013. Mr. Brayan has a wealth of management experience in software solution companies and a track record of improving the effectiveness of organizations to grow revenue and market share. Mr. Brayan served as Managing Director of Talent2 International Ltd. (formerly Concept Systems International Limited) from December 2002 to May 2007 and its Chief Operating Officer from December 2002 to May 2007. He has held senior sales, marketing and consulting roles in leading companies in Australia, the USA, Europe and Middle East, including BMC Software, Business Engine Software and Intergraph Corporation. Over his 25 years in the technology industry, he has gained extensive exposure to international markets across a broad range of sectors including the military, government, oil and gas and other industrial as well as commercial environments. He serves as Director at Mine Site Technologies Pty Limited. He was also COO of the HR outsourcing company Talent2 (ASX:TWO) and CEO of Concept Systems (ASX:CSI) before its merger with Talent2. He has been an Executive Director of Appen Limited since July 13, 2015. He served as Executive Director of Integrated Research Limited. He served as Executive Director of Talent2 International Ltd. In 2012, he was recognised as “Executive of the Year”, within the IT category of CEO Magazine’s Executive of the Year Awards. Mr. Brayan has an MBA from the Australian Graduate School of Management and a Bachelor of Surveying (with First Class Honours) from the University of New South Wales.

CEO Compensation
  • Mark Ronald's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark Ronald's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Appen management team in years:

1
Average Tenure
  • The average tenure for the Appen management team is less than 2 years, this suggests a new team.
Management Team

Mark Ronald Brayan

TITLE
MD, CEO & Executive Director
COMPENSATION
A$2M
AGE
55
TENURE
4 yrs

Kevin Levine

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
3.5 yrs

Tom Sharkey

TITLE
Senior Vice President of Client Services
COMPENSATION
A$660K
TENURE
1 yrs

Wilson Pang

TITLE
Chief Technology Officer
TENURE
0.7 yrs

Kerri Reynolds

TITLE
Senior Vice President of HR & Crowdsourcing
TENURE
2.3 yrs

Daren Jackson

TITLE
Senior Vice President of Innovation
TENURE
1.1 yrs

Becky Scott

TITLE
Chief Operating Officer of Figure Eight
TENURE
0.3 yrs

Carl Middlehurst

TITLE
Company Secretary
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Appen board of directors in years:

4.3
Average Tenure
58.5
Average Age
  • The tenure for the Appen board of directors is about average.
Board of Directors

Chris Vonwiller

TITLE
Non-Executive Chairman
COMPENSATION
A$116K
AGE
76

Mark Ronald Brayan

TITLE
MD, CEO & Executive Director
COMPENSATION
A$2M
AGE
55
TENURE
4 yrs

Robin Low

TITLE
Independent Non-Executive Director
COMPENSATION
A$91K
AGE
58
TENURE
4.8 yrs

Bill Pulver

TITLE
Independent Non-Executive Director
COMPENSATION
A$90K
AGE
59
TENURE
6.5 yrs

Steve Hasker

TITLE
Independent Non-Executive Director
COMPENSATION
A$76K
AGE
49
TENURE
4.3 yrs

Deena Shiff

TITLE
Independent Non-Executive Director
COMPENSATION
A$76K
AGE
65
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • Appen individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
18. Jun 19 Sell William Pulver Individual 11. Jun 19 12. Jun 19 -392,819 A$27.51 A$-10,807,629
12. Jun 19 Sell Mark Ronald Brayan Individual 05. Jun 19 12. Jun 19 -50,000 A$26.58 A$-1,328,800
13. Dec 18 Sell UBS Asset Management Company 03. Dec 18 11. Dec 18 -1,471,619 A$13.33 A$-19,619,483
13. Dec 18 Buy UBS Asset Management Company 03. Dec 18 11. Dec 18 1,323,712 A$13.45 A$17,799,331
04. Dec 18 Sell UBS Asset Management Company 13. Sep 18 30. Nov 18 -9,647,675 A$12.40 A$-119,607,091
04. Dec 18 Buy UBS Asset Management Company 13. Sep 18 30. Nov 18 8,915,534 A$12.16 A$108,417,831
30. Nov 18 Sell Regal Funds Management Pty Limited Company 20. Apr 18 28. Nov 18 -1,810,118 A$12.49 A$-22,605,568
30. Nov 18 Buy Regal Funds Management Pty Limited Company 21. May 18 28. Nov 18 997,319 A$11.29 A$11,257,175
22. Nov 18 Sell Vinva Investment Management Company 20. Jul 18 20. Nov 18 -350,212 A$11.83 A$-4,143,010
22. Nov 18 Buy Vinva Investment Management Company 20. Jul 18 20. Nov 18 506,396 A$12.55 A$6,357,217
03. Oct 18 Sell Mark Ronald Brayan Individual 26. Sep 18 03. Oct 18 -29,000 A$14.30 A$-409,443
14. Sep 18 Sell UBS Asset Management Company 06. Sep 18 12. Sep 18 -1,195,464 A$14.02 A$-16,757,978
14. Sep 18 Buy UBS Asset Management Company 06. Sep 18 12. Sep 18 899,791 A$14.29 A$12,857,697
07. Sep 18 Sell UBS Asset Management Company 31. Aug 18 05. Sep 18 -773,704 A$15.35 A$-11,878,679
07. Sep 18 Buy UBS Asset Management Company 31. Aug 18 05. Sep 18 651,612 A$15.37 A$10,018,316
03. Sep 18 Sell UBS Asset Management Company 16. Aug 18 30. Aug 18 -2,420,565 A$15.16 A$-33,311,820
03. Sep 18 Buy UBS Asset Management Company 16. Aug 18 30. Aug 18 2,576,662 A$14.02 A$36,119,985
17. Aug 18 Sell UBS Asset Management Company 16. Apr 18 15. Aug 18 -34,548,184 A$11.57 A$-394,700,717
17. Aug 18 Buy UBS Asset Management Company 16. Apr 18 15. Aug 18 35,090,374 A$12.50 A$405,364,621
X
Management checks
We assess Appen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Appen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

APX News

Simply Wall St News

Why Appen Limited's (ASX:APX) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Appen: P/E of 68.06 = A$26.71 ÷ A$0.39 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. … The Verdict On Appen's P/E Ratio With a P/E ratio of 68.1, Appen is expected to grow earnings very strongly in the years to come.

Simply Wall St -

Should You Be Concerned About Appen Limited's (ASX:APX) Historical Volatility?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market.

Simply Wall St -

Is Appen Limited's (ASX:APX) Balance Sheet Strong Enough To Weather A Storm?

With this debt payback, the current cash and short-term investment levels stands at AU$40m , ready to be used for running the business. … Moreover, APX has produced cash from operations of AU$47m during the same period of time, leading to an operating cash to total debt ratio of 83%, meaning that APX’s operating cash is sufficient to cover its debt. … Next Steps: APX’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

What Does Appen Limited's (ASX:APX) Balance Sheet Tell Us About It?

Investors are always looking for growth in small-cap stocks like Appen Limited (ASX:APX), with a market cap of AU$3.0b. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

What Should You Know About Appen Limited's (ASX:APX) Future?

Help shape the future of investing tools and you could win a $250 gift card! … Looking at Appen Limited's (ASX:APX) earnings update in December 2018, … the higher past 5-year average growth rate of 51%.

Simply Wall St -

Boasting A 30% Return On Equity, Is Appen Limited (ASX:APX) A Top Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every A$1 worth of shareholders' equity, it generated A$0.30 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Appen (ASX:APX) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … Appen maintained stable EBIT margins over the last year, all while growing revenue 119% to AU$364m.

Simply Wall St -

How Should Investors React To Appen Limited's (ASX:APX) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mark Ronald Brayan's Compensation Compare With Similar Sized Companies. … According to our data, Appen Limited has a market capitalization of AU$2.8b, and pays its CEO total annual compensation worth AU$1.7m.

Simply Wall St -

Could Appen Limited's (ASX:APX) Investor Composition Influence The Stock Price?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Read This Before Selling Appen Limited (ASX:APX) Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So shareholders might well want to know whether insiders have been buying or selling shares in Appen Limited (ASX:APX).

Simply Wall St -

APX Company Info

Description

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.

Details
Name: Appen Limited
APX
Exchange: ASX
Founded: 1996
A$3,645,031,556
120,976,819
Website: http://www.appen.com
Address: Appen Limited
9 Help Street,
Level 6,
Chatswood,
New South Wales, 2067,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX APX Ordinary Shares Australian Securities Exchange AU AUD 07. Jan 2015
OTCPK APPE.F Ordinary Shares Pink Sheets LLC US USD 07. Jan 2015
DB 433 Ordinary Shares Deutsche Boerse AG DE EUR 07. Jan 2015
Number of employees
Current staff
Staff numbers
513
Appen employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:39
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/02
Last earnings filing: 2019/02/24
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.