AppFolio Inc (APPF, Financial), a leading provider of cloud-based software solutions for small and medium-sized businesses in the property management and legal industries, has seen a significant surge in its stock price. The company's stock price has risen by 11.53% over the past week and by 12.98% over the past three months, reaching a current price of $195.63. With a market cap of $6.97 billion, AppFolio's recent performance has caught the attention of investors and market analysts alike.
AppFolio's Stock Performance and Valuation
AppFolio's stock has been on a steady upward trajectory, with a gain of 11.53% over the past week and 12.98% over the past three months. The company's current GF Value, a measure of intrinsic value defined by GuruFocus.com, stands at $195.57. This suggests that the stock is fairly valued at its current price. Interestingly, the GF Value three months ago was $201.42, indicating that the stock was modestly undervalued at that time. This upward adjustment in the GF Value aligns with the stock's recent price surge.
Introduction to AppFolio Inc
AppFolio Inc is a renowned player in the software industry, offering cloud-based solutions to small and medium-sized businesses primarily in the property management and legal sectors. The company's flagship products, Appfolio Property Manager and Appfolio Investment Management, provide end-to-end business solutions for property managers and real estate investment managers respectively. AppFolio operates primarily in the United States and generates its revenue from subscription fees. 
AppFolio's Profitability Analysis
AppFolio's Profitability Rank stands at 5/10, indicating average profitability. The company's Operating Margin is -10.33%, which is better than 32.01% of companies in the same industry. The company's ROE, ROA, and ROIC, which stand at -30.68%, -20.89%, and -47.56% respectively, are better than a significant percentage of companies in the industry. Over the past 10 years, the company's profitability has been better than 44.68% of companies in the same industry. 
AppFolio's Growth Prospects
AppFolio's Growth Rank is 7/10, indicating above-average growth. The company's 3-year and 5-year revenue growth rates per share are 23.30% and 25.90% respectively, which are better than a significant percentage of companies in the industry. This suggests that AppFolio has strong growth prospects. 
Top Holders of AppFolio Stock
The top three holders of AppFolio stock are Jim Simons (Trades, Portfolio), who holds 117,200 shares (0.33%), Ray Dalio (Trades, Portfolio), who holds 16,351 shares (0.05%), and Joel Greenblatt (Trades, Portfolio), who holds 4,238 shares (0.01%). Their significant holdings in the company reflect their confidence in AppFolio's performance and growth prospects.
AppFolio's Competitors in the Software Industry
AppFolio faces competition from several companies in the software industry. Its main competitors include Envestnet Inc (ENV, Financial) with a market cap of $1.99 billion, Workiva Inc (WK, Financial) with a market cap of $5.05 billion, and Alight Inc (ALIT, Financial) with a market cap of $3.37 billion. Despite the competition, AppFolio's recent performance and growth prospects position it favorably in the market.
Conclusion
In conclusion, AppFolio's recent stock performance, profitability, and growth prospects make it a compelling consideration for investors. The company's stock has seen a significant surge over the past three months, and its GF Value suggests that it is fairly valued at its current price. With a Profitability Rank of 5/10 and a Growth Rank of 7/10, AppFolio demonstrates average profitability and above-average growth. Despite facing competition in the software industry, AppFolio's strong performance and growth prospects position it favorably in the market. Investors and market analysts will be closely watching AppFolio's future performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
