DB:910

Stock Analysis Report

Executive Summary

Appian Corporation provides low-code software development platform that enables organizations to develop various applications in the United States and internationally.


Snowflake Analysis

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Appian's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 910 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.2%

910

0.6%

DE Software

0.3%

DE Market


1 Year Return

56.7%

910

37.4%

DE Software

13.8%

DE Market

Return vs Industry: 910 exceeded the German Software industry which returned 39.3% over the past year.

Return vs Market: 910 exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

910IndustryMarket
7 Day-10.2%0.6%0.3%
30 Day21.1%5.3%1.7%
90 Day8.6%7.9%5.7%
1 Year56.7%56.7%39.3%37.4%17.4%13.8%
3 Yearn/a60.2%53.8%15.9%5.7%
5 Yearn/a144.3%126.9%27.9%10.6%

Price Volatility Vs. Market

How volatile is Appian's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

21.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 910 (€44.54) is trading above our estimate of fair value (€42.69)

Significantly Below Fair Value: 910 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 910 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 910 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 910's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 910 is overvalued based on its PB Ratio (21.7x) compared to the DE Software industry average (3.1x).


Next Steps

Future Growth

How is Appian forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 910 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 910 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 910 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 910's revenue (15.4% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 910's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 910 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Appian performed over the past 5 years?

-32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 910 is currently unprofitable.

Growing Profit Margin: 910 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 910 is unprofitable, and losses have increased over the past 5 years at a rate of -32.1% per year.

Accelerating Growth: Unable to compare 910's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 910 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.6%).


Return on Equity

High ROE: 910 has a negative Return on Equity (-34.85%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Appian's financial position?


Financial Position Analysis

Short Term Liabilities: 910's short term assets ($265.0M) exceed its short term liabilities ($128.7M).

Long Term Liabilities: 910's short term assets ($265.0M) exceed its long term liabilities ($37.7M).


Debt to Equity History and Analysis

Debt Level: 910 is debt free.

Reducing Debt: 910 had no debt 5 years ago.


Balance Sheet

Inventory Level: 910 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 910's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 910 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 910 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 910's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 910's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 910's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 910's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 910's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Matt Calkins (46yo)

20.4yrs

Tenure

US$530,250

Compensation

Mr. Matthew W. Calkins, also known as Matt, has been the Chief Executive Officer and President of Appian Corporation since August 1999. Mr. Calkins Co-Founded Appian Corporation in August 1999 and has been ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD530.25K) is below average for companies of similar size in the German market ($USD2.07M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

45yo

Average Age

Experienced Management: 910's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

12.0yrs

Average Tenure

58yo

Average Age

Experienced Board: 910's board of directors are seasoned and experienced ( 12 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€4,482,88610 Sep 19
Albert Biddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares89,000
Max Price€50.37
Sell€1,116,30209 Jul 19
Abdiel Capital Advisors, LP
EntityCompany
Shares34,182
Max Price€32.85
Sell€1,422,05403 Jun 19
Albert Biddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares43,994
Max Price€32.42
Sell€611,85420 May 19
Albert Biddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares19,006
Max Price€32.21

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Management Team

  • Matt Calkins (46yo)

    Founder

    • Tenure: 20.4yrs
    • Compensation: US$530.25k
  • Edward Hughes (67yo)

    Senior Vice President of Application Sales

    • Tenure: 1yrs
    • Compensation: US$563.86k
  • Marc Wilson (44yo)

    Founder and Senior VP of Global Partnerships & Industries

    • Tenure: 6yrs
    • Compensation: US$337.67k
  • Michael Beckley (44yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: US$335.85k
  • Ben Farrell

    Vice President of Corporate Communications

    • Robert Kramer (44yo)

      Founder

      • Tenure: 12yrs
      • Compensation: US$2.85m
    • Mark Lynch (55yo)

      Chief Financial Officer

      • Tenure: 11.3yrs
      • Compensation: US$914.42k
    • Chris Winters (46yo)

      General Counsel & Corporate Secretary

      • Tenure: 4.3yrs
      • Compensation: US$1.45m
    • Myles Weber (41yo)

      Chief Information Officer

      • Tenure: 3.8yrs
    • Staci Mortenson

      Investor Relations


      Board Members

      • Jack Biddle (58yo)

        Director

        • Tenure: 12yrs
        • Compensation: US$144.37k
      • Mike Mulligan (68yo)

        Independent Director

        • Tenure: 12yrs
        • Compensation: US$165.00k
      • PV Boccassam (51yo)

        Independent Director

        • Tenure: 12yrs
        • Compensation: US$144.37k
      • Bobbie Kilberg (74yo)

        Independent Director

        • Tenure: 3yrs
        • Compensation: US$144.37k
      • Mike Devine (66yo)

        Independent Director

        • Tenure: 4.8yrs
        • Compensation: US$165.00k
      • Matt Calkins (46yo)

        Founder

        • Tenure: 20.4yrs
        • Compensation: US$530.25k
      • Robert Kramer (44yo)

        Founder

        • Tenure: 12yrs
        • Compensation: US$2.85m

      Company Information

      Appian Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Appian Corporation
      • Ticker: 910
      • Exchange: DB
      • Founded: 1999
      • Industry: Systems Software
      • Sector: Software
      • Market Cap: US$3.267b
      • Listing Market Cap: US$2.963b
      • Shares outstanding: 67.15m
      • Website: https://www.appian.com

      Number of Employees


      Location

      • Appian Corporation
      • 7950 Jones Branch Drive
      • Tysons
      • Virginia
      • 22102
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      APPNNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDMay 2017
      910DB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2017
      0HGMLSE (London Stock Exchange)YesClass A Common StockGBUSDMay 2017

      Biography

      Appian Corporation provides low-code software development platform that enables organizations to develop various applications in the United States and internationally. The company’s platform automates the creation of forms, data flows, records, reports, and other software elements that are needed to be manually coded or configured. Its principal software markets include business process management systems, dynamic case management, digital process automation, and low-code development. The company also offers professional and customer support services. Its customers include financial services, life sciences, government, telecommunications, media, energy, manufacturing, and transportation organizations. Appian Corporation has a technology alliance with UiPath for deployment of enterprise automation solutions. The company was founded in 1999 and is headquartered in Tysons, Virginia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/25 23:05
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.