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APPH

AppHarvest NasdaqGS:APPH Stock Report

Last Price

US$3.32

Market Cap

US$351.5m

7D

-13.3%

1Y

-56.3%

Updated

13 Aug, 2022

Data

Company Financials +
APPH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

APPH Stock Overview

AppHarvest, Inc., an applied agricultural technology company, develops and operates indoor farms to grow non-GMO produce free of chemical pesticide residues.

AppHarvest Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AppHarvest
Historical stock prices
Current Share PriceUS$3.32
52 Week HighUS$8.85
52 Week LowUS$2.40
Beta0.34
1 Month Change-15.95%
3 Month Change11.04%
1 Year Change-56.32%
3 Year Changen/a
5 Year Changen/a
Change since IPO-66.83%

Recent News & Updates

Aug 11

AppHarvest: The Fourth Agricultural Revolution And The Future Of Food

The combination of artificial intelligence and robotics with controlled environment agriculture could usher in a new agricultural revolution. AppHarvest is leading the way with the construction of some of North America's most extensive controlled environment agriculture facilities. Recent revenue growth has been anemic. This has vindicated bears who consider the industry as all hype with no substance. The implementation of new agricultural techniques in the middle of the 20th century would see global food production rise materially. The now widespread use of pesticides, fertilizers, and selectively bred varieties of high-yield crops would come to be called the Third Agricultural Revolution. This more efficient, and more industrialized farming technique would contribute to a wholesale reduction in global poverty whilst averting hunger for millions. Now farming looks set to undergo its fourth revolution as advances in robotics and artificial intelligence look set to boost controlled environment agriculture to extreme levels of efficiency. AppHarvest (APPH) is positioning itself at the vanguard of this with the development of some of the largest controlled environment agriculture facilities in the United States. The acquisition of Root AI and its Virgo harvesting robot in 2021 embedded enhanced techniques to the improvements to farming already presented by AppHarvest's controlled environment greenhouses. Fundamentally, the aggregation of these technologies will enable precision farming at scale. They present an intelligent way to evaluate crop health, accurately predict produce volume, and optimise the overall operations of AppHarvest's current Morehead, Kentucky facility. This new iteration of farming will see food predictions based on data instead of daily rainfall, the design instead of natural disasters, and plant production instead of poor product. That said and for all the praises AppHarvest has received from bulls, its shares have struggled. At $3.59 they currently trade lower than its $8.85 52-week peak. Of course, the broader market for growth stocks in somewhat fringe and speculative sectors has collapsed as an inverting yield curve and hawkish FED led investors to dump riskier assets. Revenue Comes In At The Lower End Of Guidance AppHarvest recently reported earnings for its fiscal 2022 second quarter which saw revenue come in at $4.36 million, a growth of 39% over the year-ago quarter but a miss of $1.74 million on consensus estimates. This growth was driven by six million pounds of tomatoes sold during the quarter which had a net sales price of 72 cents per pound versus a net sales price of 36 cents per pound on 8.6 million pounds of tomatoes sold for $3.1 million in revenue during the comparative year-ago period. Management stated that this growth was due to a stronger pricing market for tomato growers and a more favourable mix of premium tomatoes. Enhanced training and productivity improvements also helped boost revenue on the back of previous operational challenges the company faced with cultivating USDA grade No. 1 tomatoes. AppHarvest recorded a net loss of $28.7 million during the quarter, down from $32 million in the year-ago quarter but still high relative to revenue. Essentially, AppHarvest losses $6.60 for every $1 in revenue brought in from tomato sales. However, cash burn from operations stood at $10.1 million, down significantly from $27.3 million in the year-ago quarter and just over a third of net loss. Capital expenditure is of course ramping up as the company remains on track to open three new controlled environment agriculture facilities by year-end. This grew to reach $48.6 million, up sequentially from $39 million in the preceding quarter. AppHarvest expects its new facilities to all be operational within a few months with recruitment already started. Hence, the end of fiscal 2022 should see a quadrupling of farms and a diversification of its produce portfolio to include salad greens and berries. The 15-acre Berea salad greens facility is about 91% complete, the 60-acre Richmond tomato facility is 86% complete, and the 30-acre Somerset berry facility is 84% complete.

Aug 08
These Analysts Just Made A Significant Downgrade To Their AppHarvest, Inc. (NASDAQ:APPH) EPS Forecasts

These Analysts Just Made A Significant Downgrade To Their AppHarvest, Inc. (NASDAQ:APPH) EPS Forecasts

The analysts covering AppHarvest, Inc. ( NASDAQ:APPH ) delivered a dose of negativity to shareholders today, by making...

Aug 03

AppHarvest GAAP EPS of -$0.28 beats by $0.01, revenue of $4.36M misses by $1.74M

AppHarvest press release (NASDAQ:APPH): Q2 GAAP EPS of -$0.28 beats by $0.01. Revenue of $4.36M (+38.9% Y/Y) misses by $1.74M. The company expects to be closer to the lower end of its guidance range and tightened its full-year 2022 net sales outlook to $20M to $25M vs. consensus of $26.6M. The company continues to expect that its three new farms will be operational by the end of 2022. The company also updated its full-year 2022 outlook for Adjusted EBITDA to the range of a loss of $80M to $85M, reflecting adjustments to the net sales outlook and higher cost of goods driven by supply chain delays and other inflationary impacts.

Shareholder Returns

APPHUS FoodUS Market
7D-13.3%1.2%3.2%
1Y-56.3%5.0%-10.1%

Return vs Industry: APPH underperformed the US Food industry which returned 5% over the past year.

Return vs Market: APPH underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is APPH's price volatile compared to industry and market?
APPH volatility
APPH Average Weekly Movement13.3%
Food Industry Average Movement6.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: APPH is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: APPH's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2018500Jonathan Webbhttps://www.appharvest.com

AppHarvest, Inc., an applied agricultural technology company, develops and operates indoor farms to grow non-GMO produce free of chemical pesticide residues. Its products include tomatoes; and other fruits and vegetables, such as berries, peppers, cucumbers, and salad greens. The company was incorporated in 2018 and is based in Morehead, Kentucky.

AppHarvest Fundamentals Summary

How do AppHarvest's earnings and revenue compare to its market cap?
APPH fundamental statistics
Market CapUS$351.55m
Earnings (TTM)-US$164.99m
Revenue (TTM)US$13.14m

26.8x

P/S Ratio

-2.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APPH income statement (TTM)
RevenueUS$13.14m
Cost of RevenueUS$47.09m
Gross Profit-US$33.96m
Other ExpensesUS$131.04m
Earnings-US$164.99m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.56
Gross Margin-258.54%
Net Profit Margin-1,256.15%
Debt/Equity Ratio48.1%

How did APPH perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is APPH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APPH?

Other financial metrics that can be useful for relative valuation.

APPH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue36.3x
Enterprise Value/EBITDA-4.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does APPH's PS Ratio compare to its peers?

APPH PS Ratio vs Peers
The above table shows the PS ratio for APPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2x
VFF Village Farms International
0.9x15.9%US$262.2m
ALCO Alico
2.8x9.0%US$264.3m
BHIL Benson Hill
2.8x17.6%US$781.5m
LMNR Limoneira
1.4x14.0%US$237.5m
APPH AppHarvest
26.8x52.6%US$351.5m

Price-To-Sales vs Peers: APPH is expensive based on its Price-To-Sales Ratio (26.8x) compared to the peer average (2x).


Price to Earnings Ratio vs Industry

How does APPH's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Sales vs Industry: APPH is expensive based on its Price-To-Sales Ratio (26.8x) compared to the US Food industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is APPH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

APPH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio26.8x
Fair PS Ratio0.001x

Price-To-Sales vs Fair Ratio: APPH is expensive based on its Price-To-Sales Ratio (26.8x) compared to the estimated Fair Price-To-Sales Ratio (0x).


Share Price vs Fair Value

What is the Fair Price of APPH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate APPH's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate APPH's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is AppHarvest forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


39.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: APPH's revenue (52.6% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: APPH's revenue (52.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has AppHarvest performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-95.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: APPH is currently unprofitable.

Growing Profit Margin: APPH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APPH is unprofitable, and losses have increased over the past 5 years at a rate of 95.5% per year.

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

Earnings vs Industry: APPH is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (5.4%).


Return on Equity

High ROE: APPH has a negative Return on Equity (-46.38%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is AppHarvest's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: APPH's short term assets ($107.1M) exceed its short term liabilities ($79.4M).

Long Term Liabilities: APPH's short term assets ($107.1M) do not cover its long term liabilities ($128.6M).


Debt to Equity History and Analysis

Debt Level: APPH's net debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if APPH's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: APPH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: APPH has less than a year of cash runway if free cash flow continues to reduce at historical rates of 81.3% each year


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as APPH has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.6yrs

Average management tenure


CEO

Jonathan Webb (37 yo)

4.58yrs

Tenure

US$33,087,859

Compensation

Mr. Jonathan Webb is Founder and Chief Executive Officer at AppHarvest, Inc since January 2018 and is its Chairman of the Board. He has been a Director at AppHarvest, Inc. since January 2018. He was Presid...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD33.09M) is above average for companies of similar size in the US market ($USD2.55M).

Compensation vs Earnings: Jonathan's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: APPH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: APPH's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: APPH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

AppHarvest, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: AppHarvest, Inc.
  • Ticker: APPH
  • Exchange: NasdaqGS
  • Founded: 2018
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$351.549m
  • Shares outstanding: 105.89m
  • Website: https://www.appharvest.com

Number of Employees


Location

  • AppHarvest, Inc.
  • 500 Appalachian Way
  • Morehead
  • Kentucky
  • 40351
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.