AppFolio (APPF) AI Stock Analysis

• Market Cap: $9.42B
• Dividend Yield: N/A
• Average Volume (3M): 256.99K
• Price to Earnings (P/E): 48.8
• Beta (1Y): 0.82
• Revenue Growth: 22.73%
• EPS Growth: 154.79%
• Country: US
• Employees: 1,634
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 1.21
• Shares Outstanding: 23,047,321
• 10 Day Avg. Volume: 234,347
• 30 Day Avg. Volume: 256,994
• PEG Ratio: -11.94
• Price to Book (P/B): 18.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.43
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.79
• Enterprise Value/Gross Profit: 16.72
• Enterprise Value/Ebitda: 14.40
• 1Y Price Target: $240.00
• Price Target Upside: -8.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $271.00 ▲(3.66%Upside)

AppFolio's strong financial performance, positive earnings call, and technical momentum contribute to a favorable stock outlook. However, high valuation and potential overbought technical indicators present some risks.

Positive Factors

Market Performance

AppFolio has outperformed the Nasdaq, attributed to its strong execution in driving share gains, expanding ARPU, and meaningfully improving margins.

Product Adoption

Demand for AppFolio’s AI solutions within Realm-X has continued to push customers to upgrade to higher APM tiers.

Revenue Growth

ARPU grew 10% year-over-year in the quarter, driven by customers moving to higher-priced subscriptions and continued adoption of value-added services.

Negative Factors

Growth Expectations

AppFolio's 2025 is seen as a transitional year with tough comparisons and leadership changes, leading to lower growth expectations.

Interest Rate Impact

Elevated interest rate environment limits upside potential to unit growth, with interest rates needing to fall to drive better organic property unit expansion.

Leadership Changes

Recent leadership changes, including a new CRO and ongoing CFO search, create some near-term execution risk for AppFolio.

AppFolio Business Overview & Revenue Model

Company Description

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry. The company offers AppFolio Property Manager, a platform to leverage process automation, easy to use interface, and the optimization of common workflows for property management companies, as well as completes and records critical transactions in the system and give its customers access to the data they need to run their business; AppFolio Property Manager Plus, which offers customizable workflows that allow customers to digitize their existing processes, performance insights, intelligent revenue management, and integrations through selected partners and dedicated strategic account managers; and AppFolio Investment Management, a solution that is designed to enable real estate investment management organizations to manage investor relationships through enhancing transparency and streamlining certain business processes. It also provides value added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.

How the Company Makes Money

AppFolio generates revenue primarily through a subscription-based model, where customers pay recurring fees to access its software solutions. The company's key revenue streams include software subscription fees, value-added services, and implementation services. AppFolio also benefits from additional revenue through partnerships with third-party service providers that integrate with its platform, offering enhanced functionalities such as payment processing and insurance services. The company's focus on innovation and customer-centric solutions supports its growth and ability to maintain a competitive edge in the property management software market.

AppFolio Financial Statement Overview

Summary

AppFolio demonstrates strong revenue and profit growth, effective cost management, and low leverage. The income statement and cash flow indicate a positive trajectory with robust margins. The balance sheet is stable but requires attention to asset growth.

Income Statement

AppFolio has demonstrated strong revenue growth with a TTM increase to $824.47M, reflecting a significant rise from prior years. The gross profit margin stands at 62.8%, showcasing excellent cost management. The net profit margin is robust at 23.9%, indicating effective operational strategies leading to profitability. The company has improved its EBIT and EBITDA margins, currently at 16.4% and 19.9% respectively, indicating strong operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability improvement.

Balance Sheet

The balance sheet of AppFolio reveals a strong equity position with a debt-to-equity ratio of 0.08, indicating low leverage and financial stability. The equity ratio is high at 81.9%, suggesting a solid asset base funded by equity. Return on equity is impressive at 42.6%, highlighting effective use of shareholders' funds. However, the decrease in total assets and equity over the recent periods could pose a potential risk if not addressed.

Cash Flow

AppFolio's cash flow statement shows a strong operating cash flow to net income ratio of 0.93, indicating good cash generation relative to its net income. Free cash flow has grown consistently, with a TTM free cash flow of $179.86M, demonstrating the company's ability to generate cash after capital expenditures. The free cash flow to net income ratio is high at 0.91, supporting the company's sustainable cash flow generation. Overall, cash flows are stable and supportive of ongoing operations and potential growth investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	794.20M	620.45M	471.88M	359.37M	310.06M
Gross Profit	492.59M	382.37M	280.06M	215.43M	191.03M
EBITDA	169.87M	29.95M	-38.36M	20.35M	17.39M
Net Income	204.07M	2.70M	-68.12M	1.03M	158.40M
Balance Sheet
Total Assets	626.68M	408.89M	381.22M	408.02M	389.48M
Cash, Cash Equivalents and Short-Term Investments	278.25M	211.71M	160.07M	122.45M	168.52M
Total Debt	41.75M	44.74M	50.24M	55.73M	40.15M
Total Liabilities	107.39M	111.58M	115.67M	110.64M	103.56M
Stockholders Equity	519.29M	297.31M	265.55M	297.38M	285.92M
Cash Flow
Free Cash Flow	186.14M	51.24M	4.14M	2.67M	3.22M
Operating Cash Flow	188.16M	60.28M	25.36M	35.39M	48.30M
Investing Cash Flow	-151.76M	-55.58M	-6.47M	-110.46M	146.51M
Financing Cash Flow	-43.40M	-25.96M	-6.16M	-7.35M	-70.36M

AppFolio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 261.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Positive. The current price of 261.43 is above the 20-day moving average (MA) of 243.11, above the 50-day MA of 228.16, and above the 200-day MA of 228.76, indicating a bullish trend. The MACD of 8.68 indicates Negative momentum. The RSI at 72.86 is Negative, neither overbought nor oversold. The STOCH value of 90.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APPF.

AppFolio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	79 Outperform	$9.92B	50.18	41.55%	0.18%	12.47%	65.19%
APPF	75 Outperform	$9.42B	48.82	49.11%	―	22.73%	154.79%
PCTY	75 Outperform	$10.30B	46.51	19.70%	―	14.63%	17.15%
CVLT	74 Outperform	$7.39B	98.38	25.23%	―	18.63%	-55.09%
DAY	71 Outperform	$9.50B	371.54	1.03%	―	14.97%	-51.02%
ESTC	69 Neutral	$9.18B	192.75	-12.98%	―	17.04%	-273.13%
Sector *	60 Neutral	€9.14B	17.08	3.87%	1.82%	4.14%	-26.31%

AppFolio Corporate Events

AppFolio Holds 2025 Annual Stockholders Meeting

AppFolio, Inc. held its 2025 Annual Meeting of Stockholders on June 13, 2025, where several key proposals were voted upon. The meeting saw the election of three Class I directors, the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm, approval of executive compensation, and a decision to hold annual advisory votes on executive compensation.

The most recent analyst rating on (APPF) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.