NasdaqGM:APPN

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

Flawless 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: APPN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-26.1%

APPN

-6.6%

US Software

-4.2%

US Market


1 Year Return

27.1%

APPN

29.5%

US Software

14.0%

US Market

Return vs Industry: APPN underperformed the US Software industry which returned 29.5% over the past year.

Return vs Market: APPN exceeded the US Market which returned 14% over the past year.


Shareholder returns

APPNIndustryMarket
7 Day-26.1%-6.6%-4.2%
30 Day-3.9%1.8%-1.8%
90 Day6.3%8.4%2.6%
1 Year27.1%27.1%30.8%29.5%16.3%14.0%
3 Yearn/a138.3%128.2%43.2%34.0%
5 Yearn/a203.2%181.5%65.9%47.6%

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

Valuation

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

15.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate APPN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate APPN's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: APPN is overvalued based on its PB Ratio (15.4x) compared to the US Software industry average (5.8x).


Next Steps

Future Growth

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

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: APPN's revenue (13.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: APPN's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APPN's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Appian performed over the past 5 years?

-30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APPN is currently unprofitable.

Growing Profit Margin: APPN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APPN is unprofitable, and losses have increased over the past 5 years at a rate of -30% per year.

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

Earnings vs Industry: APPN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: APPN has a negative Return on Equity (-24.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Appian's financial position?


Financial Position Analysis

Short Term Liabilities: APPN's short term assets ($277.7M) exceed its short term liabilities ($112.3M).

Long Term Liabilities: APPN's short term assets ($277.7M) exceed its long term liabilities ($54.0M).


Debt to Equity History and Analysis

Debt Level: APPN is debt free.

Reducing Debt: APPN had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if APPN'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: APPN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: APPN has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -49.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if APPN'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 APPN'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?

4.8yrs

Average management tenure


CEO

Matt Calkins (46yo)

20.5yrs

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 ($USD530.25K) is below average for companies of similar size in the US market ($USD4.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Calkins
Founder20.5yrsUS$530.25k0.050% $1.6m
Robert Kramer
Founder12.1yrsUS$2.85m3.69% $116.6m
Edward Hughes
Senior Vice President of Application Sales1.1yrsUS$563.86k0.17% $5.3m
Marc Wilson
Founder and Senior VP of Global Partnerships & Industries6.1yrsUS$337.67k2.29% $72.4m
Michael Beckley
Founder4.8yrsUS$335.85k1.36% $43.0m
Mark Lynch
Chief Financial Officer11.3yrsUS$914.42k0.0080% $253.8k
Myles Weber
Chief Information Officer3.8yrsno datano data
Staci Mortenson
Investor Relations0yrsno datano data
Christopher Winters
General Counsel & Corporate Secretary4.4yrsUS$1.45m0.038% $1.2m
Ben Farrell
Vice President of Corporate Communications0yrsno datano data

4.8yrs

Average Tenure

45yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Matthew Calkins
Founder20.5yrsUS$530.25k0.050% $1.6m
Robert Kramer
Founder12.1yrsUS$2.85m3.69% $116.6m
Albert Biddle
Director12.1yrsUS$144.37k0.38% $12.1m
Michael Mulligan
Independent Director12.1yrsUS$165.00k0.058% $1.8m
Prashanth Boccassam
Independent Director12.1yrsUS$144.37k0.15% $4.6m
Barbara Kilberg
Independent Director3.1yrsUS$144.37k0.0062% $196.4k
Michael Devine
Independent Director4.9yrsUS$165.00k0.013% $397.8k

12.1yrs

Average Tenure

58yo

Average Age

Experienced Board: APPN's board of directors are seasoned and experienced ( 12.1 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 been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Appian Corporation
  • Ticker: APPN
  • Exchange: NasdaqGM
  • Founded: 1999
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$3.157b
  • Shares outstanding: 67.49m
  • 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 Analysis2020/02/25 01:44
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.