AppFolio Inc (APPF, Financial) has experienced a significant uptick in its stock price, with a 17.99% gain over the past week and an 18.41% increase over the last three months. The company's market capitalization now stands at $7.62 billion, with a current stock price of $213. When compared to the GF Value of $204.78, which has risen from the past GF Value of $192.97, AppFolio is currently deemed to be Fairly Valued, maintaining the same valuation status as three months prior.
Introduction to AppFolio Inc
AppFolio Inc, operating within the software industry, specializes in delivering cloud-based software solutions tailored for small and medium-sized businesses (SMBs) in the property management and legal sectors. Their comprehensive property management software, Appfolio Property Manager, and their real estate investment management software, Appfolio Investment Management, are designed to streamline operations for their clients. Additionally, AppFolio offers ancillary services such as website design and electronic payment processing. The company primarily operates in the United States and generates its revenue predominantly from subscription fees.
Assessing AppFolio's Profitability
AppFolio's Profitability Rank stands at 5/10, indicating a moderate level of profitability within the industry. The company's Operating Margin is currently at -8.25%, which is more favorable than 32.96% of 2,752 companies in the software industry. AppFolio's Return on Equity (ROE) is -18.66%, surpassing 25.78% of its peers, while the Return on Assets (ROA) at -12.66% is better than 26.93% of the industry. The Return on Invested Capital (ROIC) is at -29.78%, which is higher than 18.44% of competitors. Over the past decade, AppFolio has achieved profitability in 5 years, outperforming 45.33% of 2,246 companies in the sector.
Growth Trajectory of AppFolio
The company's Growth Rank is 6/10, reflecting a solid growth trajectory. AppFolio's 3-Year Revenue Growth Rate per Share is an impressive 23.30%, which is higher than 77.8% of 2,396 companies in the software industry. The 5-Year Revenue Growth Rate per Share is even more remarkable at 25.90%, surpassing 87.99% of 1,882 companies. These figures demonstrate AppFolio's strong growth potential and its ability to expand its market share within the software sector.
Notable Shareholders in AppFolio
Among the notable shareholders of AppFolio, Jim Simons (Trades, Portfolio) leads with 135,500 shares, representing a 0.38% share percentage. Following him is Ray Dalio (Trades, Portfolio), holding 14,507 shares, which equates to a 0.04% share percentage. Joel Greenblatt (Trades, Portfolio) also has a stake in the company with 4,590 shares, amounting to a 0.01% share percentage. The positions of these prominent investors underscore a level of confidence in AppFolio's business model and future prospects.
Competitive Landscape
When compared to its competitors, AppFolio's market cap of $7.62 billion positions it within a competitive range. GitLab Inc (GTLB, Financial) has a higher market cap of $10.8 billion, while Monday.Com Ltd (MNDY, Financial) is close behind with a market cap of $9.98 billion. ZoomInfo Technologies Inc (ZI, Financial) has a market cap of $6.25 billion, slightly lower than AppFolio's. This competitive analysis highlights the dynamic nature of the software industry and the importance of innovation and growth in maintaining market position.
Conclusion
In summary, AppFolio Inc's stock performance has been robust, with significant gains over the past week and three months, and the company is currently valued as Fairly Valued according to GF Value. The analysis of AppFolio's profitability and growth prospects indicates a company with potential, despite some challenges in profitability metrics. The positions held by notable shareholders suggest a level of investor confidence, and the comparison with key competitors shows AppFolio is a strong player in the software industry. Investors will continue to watch AppFolio's performance closely as it navigates the competitive landscape and strives for further growth.
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.
