NasdaqGM:APPF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

AppFolio, Inc. provides industry-specific cloud-based business software solutions, services, and data analytics for the real estate and legal markets. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: APPF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: APPF's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

5.1%

APPF

0.2%

US Software

1.5%

US Market


1 Year Return

43.7%

APPF

46.5%

US Software

22.3%

US Market

Return vs Industry: APPF underperformed the US Software industry which returned 46.4% over the past year.

Return vs Market: APPF exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

APPFIndustryMarket
7 Day5.1%0.2%1.5%
30 Day4.3%3.9%8.8%
90 Day8.0%6.2%10.8%
1 Year43.7%43.7%47.4%46.5%25.1%22.3%
3 Year294.2%294.2%142.1%134.3%49.5%39.6%
5 Year967.0%967.0%235.6%217.9%105.8%83.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APPF ($163.78) is trading above our estimate of fair value ($42.55)

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


Price To Earnings Ratio

PE vs Industry: APPF is good value based on its PE Ratio (34.3x) compared to the US Software industry average (56x).

PE vs Market: APPF is poor value based on its PE Ratio (34.3x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: APPF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: APPF is overvalued based on its PB Ratio (19.8x) compared to the US Software industry average (8.1x).


Next Steps

Future Growth

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

-58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APPF's earnings are forecast to decline over the next 3 years (-58.2% per year).

Earnings vs Market: APPF's earnings are forecast to decline over the next 3 years (-58.2% per year).

High Growth Earnings: APPF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: APPF's revenue (14.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: APPF's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APPF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AppFolio performed over the past 5 years?

75.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APPF has a high level of non-cash earnings.

Growing Profit Margin: APPF's current net profit margins (53.6%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: APPF has become profitable over the past 5 years, growing earnings by 75.5% per year.

Accelerating Growth: APPF's earnings growth over the past year (373.2%) exceeds its 5-year average (75.5% per year).

Earnings vs Industry: APPF earnings growth over the past year (373.2%) exceeded the Software industry 8%.


Return on Equity

High ROE: APPF's Return on Equity (57.4%) is considered outstanding.


Next Steps

Financial Health

How is AppFolio's financial position?


Financial Position Analysis

Short Term Liabilities: APPF's short term assets ($201.9M) exceed its short term liabilities ($56.2M).

Long Term Liabilities: APPF's short term assets ($201.9M) exceed its long term liabilities ($45.6M).


Debt to Equity History and Analysis

Debt Level: APPF is debt free.

Reducing Debt: APPF had no debt 5 years ago.

Debt Coverage: APPF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: APPF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate APPF'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 APPF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APPF'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 APPF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Jason Randall (47 yo)

3.33yrs

Tenure

US$662,850

Compensation

Mr. Jason Robert Randall has been the Chief Executive Officer, President and Director of AppFolio, Inc. since August 8, 2017. Mr. Randall served as Senior Vice President and AppFolio Property Manager of Ap...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD662.85K) is below average for companies of similar size in the US market ($USD7.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jason Randall
President3.33yrsUS$662.85k0.058%
$ 3.3m
Klaus Schauser
Founder & Director13.92yrsUS$229.79k13.33%
$ 749.2m
Jonathan Walker
Founder & CTO14.92yrsUS$793.95k1.89%
$ 106.3m
Ida Kane
Chief Financial Officer5.83yrsUS$634.24k0.042%
$ 2.4m
Matt Mazza
General Counsel & Chief Compliance Officer0.92yrno datano data
Aimee Miller
Chief Marketing Officer3.67yrsno datano data
Amy Meyer
Chief People Officer5.25yrsno datano data
Nat Kunes
Senior Vice President of Real Estate Investment Management0.92yrno datano data

4.5yrs

Average Tenure

50.5yo

Average Age

Experienced Management: APPF's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Randall
President3.33yrsUS$662.85k0.058%
$ 3.3m
Klaus Schauser
Founder & Director13.92yrsUS$229.79k13.33%
$ 749.2m
Andreas Von Blottnitz
Independent Chairman of the Boardno dataUS$142.50k0.0056%
$ 316.5k
William Rauth
Independent Director5.5yrsno data0.67%
$ 37.5m
Winifred Webb
Independent Director1yrUS$252.92k0.0091%
$ 513.9k
Janet Kerr
Independent Director5.5yrsUS$152.50k0.051%
$ 2.9m
Agnes Scanlan
Director0.083yrno data0.0051%
$ 287.9k
Timothy Bliss
Independent Director12.92yrsno data3.9%
$ 219.5m

5.5yrs

Average Tenure

62yo

Average Age

Experienced Board: APPF's board of directors are considered experienced (5.5 years average tenure).


Ownership

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.


Ownership Breakdown

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


Top Shareholders

Company Information

AppFolio, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AppFolio, Inc.
  • Ticker: APPF
  • Exchange: NasdaqGM
  • Founded: 2006
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$5.622b
  • Shares outstanding: 34.33m
  • Website: https://www.appfolioinc.com

Number of Employees


Location

  • AppFolio, Inc.
  • 50 Castilian Drive
  • Santa Barbara
  • California
  • 93117
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APPFNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDJun 2015
4P0DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2015

Biography

AppFolio, Inc. provides industry-specific cloud-based business software solutions, services, and data analytics for the real estate and legal markets. The company offers AppFolio Property Manager, a cloud-...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:07
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.