AppFolio, Inc.
AppFolio, Inc. Fundamental Analysis
AppFolio, Inc. (APPF) shows moderate financial fundamentals with a PE ratio of 43.66, profit margin of 14.82%, and ROE of 28.77%. The company generates $1.0B in annual revenue with strong year-over-year growth of 28.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze APPF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAPPF demonstrates superior asset utilization.
Valuation Score
ModerateAPPF shows balanced valuation metrics.
Growth Score
ExcellentAPPF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAPPF maintains a strong and stable balance sheet.
Profitability Score
ModerateAPPF maintains healthy but balanced margins.
Key Financial Metrics
Is APPF Expensive or Cheap?
P/E Ratio
APPF trades at 43.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, APPF's PEG of -1.43 indicates potential undervaluation.
Price to Book
The market values AppFolio, Inc. at 11.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.36 times EBITDA. This signals the market has high growth expectations.
How Well Does APPF Make Money?
Net Profit Margin
For every $100 in sales, AppFolio, Inc. keeps $14.82 as profit after all expenses.
Operating Margin
Core operations generate 16.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.77 in profit for every $100 of shareholder equity.
ROA
AppFolio, Inc. generates $19.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AppFolio, Inc. generates strong operating cash flow of $242.40M, reflecting robust business health.
Free Cash Flow
AppFolio, Inc. generates strong free cash flow of $238.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.62 in free cash annually.
FCF Yield
APPF converts 3.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How APPF Stacks Against Its Sector Peers
| Metric | APPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.66 | 35.19 | Worse (Expensive) |
| ROE | 28.77% | 1155.00% | Weak |
| Net Margin | 14.82% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 3.20 | 4.71 | Strong Liquidity |
| ROA | 19.51% | -314918.00% (disorted) | Strong |
APPF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AppFolio, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
191.09%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
427.76%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
354.02%
Industry Style: Growth, Innovation, High Beta
High Growth