NasdaqGM:APPF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$4.8b

Last Updated

2021/08/04 23:09 UTC

Data Sources

Company Financials +

Executive Summary

AppFolio, Inc., together with its subsidiaries, provides industry-specific cloud-based business software solutions, services, and data analytics for the real estate industry. 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 +/- 4% a week.

Volatility Over Time: APPF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

APPF

1.1%

US Software

0.02%

US Market


1 Year Return

-14.1%

APPF

36.1%

US Software

33.2%

US Market

Return vs Industry: APPF underperformed the US Software industry which returned 35.5% over the past year.

Return vs Market: APPF underperformed the US Market which returned 34.7% over the past year.


Shareholder returns

APPFIndustryMarket
7 Day0.3%1.1%0.02%
30 Day0.09%3.2%-0.1%
90 Day6.9%17.9%4.1%
1 Year-14.1%-14.1%36.9%36.1%35.3%33.2%
3 Year87.2%87.2%143.5%136.8%61.4%51.3%
5 Year678.1%678.1%354.7%331.1%122.2%97.7%

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?

30.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APPF ($139.9) is trading above our estimate of fair value ($60.68)

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 (30.6x) compared to the US Software industry average (50.5x).

PE vs Market: APPF is poor value based on its PE Ratio (30.6x) compared to the US market (18x).


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 (16.9x) compared to the US Software industry average (6.8x).


Future Growth

How is AppFolio forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-41.6%

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 (-41.6% per year).

Earnings vs Market: APPF's earnings are forecast to decline over the next 3 years (-41.6% per year).

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

Revenue vs Market: APPF's revenue (16.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: APPF's revenue (16.4% 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


Past Performance

How has AppFolio performed over the past 5 years?

74.9%

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 (49.6%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: APPF has become profitable over the past 5 years, growing earnings by 74.9% per year.

Accelerating Growth: APPF's earnings growth over the past year (354.3%) exceeds its 5-year average (74.9% per year).

Earnings vs Industry: APPF earnings growth over the past year (354.3%) exceeded the Software industry 34.2%.


Return on Equity

High ROE: APPF's Return on Equity (54.9%) is considered outstanding.


Financial Health

How is AppFolio's financial position?


Financial Position Analysis

Short Term Liabilities: APPF's short term assets ($181.5M) exceed its short term liabilities ($43.0M).

Long Term Liabilities: APPF's short term assets ($181.5M) exceed its long term liabilities ($49.9M).


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


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?

4.0yrs

Average management tenure


CEO

Jason Randall (48 yo)

4yrs

Tenure

US$742,230

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 ($USD742.23K) is below average for companies of similar size in the US market ($USD6.50M).

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


Leadership Team

Experienced Management: APPF's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: APPF's board of directors are considered experienced (6.2 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.


Recent Insider Transactions

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$4.827b
  • Shares outstanding: 34.50m
  • Website: https://www.appfolioinc.com

Number of Employees


Location

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

Listings


Biography

AppFolio, Inc., together with its subsidiaries, provides industry-specific cloud-based business software solutions, services, and data analytics for the real estate industry. The company offers AppFolio Pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 23:09
End of Day Share Price2021/08/04 00:00
Earnings2021/03/31
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.