AppFolio (APPF) AI Stock Analysis

• Market Cap: $7.56B
• Dividend Yield: N/A
• Average Volume (3M): 317.78K
• Price to Earnings (P/E): 39.2
• Beta (1Y): 0.92
• Revenue Growth: 22.73%
• EPS Growth: 154.79%
• Country: US
• Employees: 1,634
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Application
• EPS (TTM): 1.21
• Shares Outstanding: 23,047,321
• 10 Day Avg. Volume: 239,910
• 30 Day Avg. Volume: 317,781
• PEG Ratio: -10.58
• Price to Book (P/B): 16.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.93
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 14.89
• Enterprise Value/Ebitda: 12.82
• 1Y Price Target: $237.67
• Price Target Upside: 13.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $239.00 ▲( 13.90% Upside)

AppFolio is positioned well in the software industry with strong financial performance and strategic initiatives. Nonetheless, the high valuation and mixed technical signals warrant caution. The company's robust revenue growth and strategic efforts are notable strengths, while the high P/E ratio and lack of dividend yield might concern some investors.

Positive Factors

Market Performance

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

Revenue Growth

ARPU grew 10% year-over-year, driven by customers moving to higher-priced subscriptions and 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.

Leadership Changes

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

AppFolio Business Overview & Revenue Model

Company Description

AppFolio, Inc. (APPF) is a leading provider of cloud-based software solutions tailored for specific verticals. Primarily serving the real estate industry, AppFolio offers a comprehensive platform that helps property managers and owners manage their operations more efficiently. The company's software suite includes tools for property management, accounting, leasing, and tenant management, as well as solutions for marketing and customer communication.

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 financial health, with robust revenue growth, excellent profit margins, and efficient cash flow generation. The balance sheet is stable with low leverage, though maintaining asset growth is essential for future expansion.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
824.47M	794.20M	620.45M	471.88M	359.37M	310.06M
	Gross Profit
517.55M	492.59M	382.37M	280.06M	215.43M	191.03M
	EBIT
135.34M	135.64M	963.00K	-72.37M	-11.88M	9.78M
	EBITDA
161.22M	169.87M	29.95M	-38.36M	20.35M	17.39M
	Net Income Common Stockholders
196.79M	204.07M	2.70M	-68.12M	1.03M	158.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.76M	278.25M	211.71M	160.07M	122.45M	168.52M
	Total Assets
438.77M	626.68M	408.89M	381.22M	408.02M	389.48M
	Total Debt
44.27M	41.75M	44.74M	50.24M	55.73M	40.15M
	Net Debt
-15.20M	-755.00K	-4.77M	-20.53M	-2.11M	-100.12M
	Total Liabilities
99.58M	107.39M	111.58M	115.67M	110.64M	103.56M
	Stockholders Equity
339.19M	519.29M	297.31M	265.55M	297.38M	285.92M
Cash Flow		Free Cash Flow
179.86M	186.14M	51.24M	4.14M	2.67M	3.22M
	Operating Cash Flow
183.67M	188.16M	60.28M	25.36M	35.39M	48.30M
	Investing Cash Flow
-47.93M	-151.76M	-55.58M	-6.47M	-110.46M	146.51M
	Financing Cash Flow
-138.02M	-43.40M	-25.96M	-6.16M	-7.35M	-70.36M

AppFolio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 209.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Negative. The current price of 209.83 is below the 20-day moving average (MA) of 211.79, below the 50-day MA of 216.61, and below the 200-day MA of 227.73, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPF.

AppFolio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWAN	76 Outperform	$6.24B	13.24	58.14%	―	23.21%	―
DBX	75 Outperform	$8.05B	18.78	-60.11%	―	0.79%	0.59%
APPF	73 Outperform	$7.56B	39.19	49.11%	―	22.73%	154.79%
GTLB	66 Neutral	$7.85B	―	-0.20%	―	30.93%	99.45%
U	65 Neutral	$8.63B	―	-14.15%	―	-16.74%	49.75%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
CFLT	57 Neutral	$7.43B	―	-34.18%	―	24.11%	21.87%

AppFolio Corporate Events

AppFolio Announces $300M Stock Repurchase Program

On April 24, 2025, AppFolio announced a new $300 million stock repurchase program for its Class A common stock, replacing a previous $100 million program. The company also reported strong financial results for the first quarter of 2025, with a 16% year-over-year revenue growth to $218 million and strategic partnerships enhancing its resident strategy, positioning it well for future growth.

AppFolio Expands Board with New Independent Director

On April 3, 2025, AppFolio‘s Board of Directors expanded from eight to nine members, appointing Robert Donald Casey III as a new independent director. Mr. Casey, with extensive experience in technology and investment, is expected to enhance the company’s strategic direction and governance.