AppFolio Inc (APPF) stock analysis
Close on Nov 11, 2026Market cap $7.97BP/E 47.4Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid15 of 30 checks passed
AppFolio passes 15 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 4/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 43.8%, above the 10% that usually covers the cost of capital.
No debt
AppFolio has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 26.3% a year over the last three fiscal years.
Interest well covered
No meaningful interest expense to cover.
What to watch
Margin of safety under 20%
The price is 21.3% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $224.85 is above our fair value estimate of $185.41.
Return on equity under 15%
Return on equity was 31.4% over the last twelve months and averaged 10.7% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 2.3% a year on average over the last five fiscal years.
Valuation1/6
P/E above its 5-year median
AppFolio's P/E of 47.4 is above its own 5-year median of 46.0.
P/E above the industry
AppFolio's P/E of 47.4 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
AppFolio's EV/EBITDA of 34.3 is below its 5-year median of 56.6.
P/B above the industry
AppFolio's price-to-book of 13.69 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $224.85 is above our fair value estimate of $185.41.
Margin of safety under 20%
The price is 21.3% above fair value, so there is no margin of safety.
Growth4/6
Revenue growing 10%+ a year
Revenue grew 26.3% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings growth not accelerating
Net income grew -16.6% over the last twelve months, against a 5-year average of -2.3% a year.
Growing faster than the industry
Revenue grew 20.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
AppFolio raised its Full year revenue outlook on Jul 23, 2026.
Gross margin improving
Gross margin was 63.8% over the last twelve months, against 63.5% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 31.4% over the last twelve months and averaged 10.7% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 43.8%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
AppFolio's return on equity of 31.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings shrank over 5 years
Net income shrank 2.3% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 15.6% over the last twelve months, against a 5-year average of 5.4%.
Net margin above the industry
AppFolio's net margin of 15.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health6/6
No debt
AppFolio has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 4.00 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 40.00; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
AppFolio has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$185.41
The share price is 21% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 36.9× | 46.0× | 27.6× | $174.81 | 53% |
| EV/EBITDA | 30.0× | 56.6× | 18.8× | $197.52 | 47% |
| Earnings powerleft out, too far from the others | 9.2% cost of equity | – | – | $48.62 | – |
| Fair value | $185.41 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 46.0
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $85.06M
- Value traded per 1% price move
- $35.99M
Downside
Medium risk
- Typical loss in a bad month
- 21.9%
- Volatility (annualized)
- 45%
- Sharpe ratio, 1 year
- -0.36
- Beta to the S&P 500 (5Y)
- 0.87
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +19.7% | +26.3% | +25.1% | +28.9% | |
| Gross profit | +18.2% | +29.3% | +26.0% | +30.9% | |
| Operating income | +12.7% | – | +73.3% | – | |
| Net income | -30.9% | – | -2.3% | – | |
| EPS, diluted | -30.1% | – | -2.7% | – | |
| Free cash flow | +28.4% | +133.3% | +52.2% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -11.6% | 75.8% | 26.5% | |
| Return on assets | -9.0% | 48.8% | 21.4% | |
| Current ratio | 1.51 | 4.00 | 3.31 | |
| Debt to equity | – | – | – | |
| Net debt to EBITDA | – | – | – | |
| Capex to revenue | 4.0% | 6.1% | 0.3% | |
| Diluted shares | 34M | 36M | 36M |
Where the cash went
Fiscal 2021 to 2025, five years combined
AppFolio generated $551.30M from operations and spent $174.58M on capital expenditure, dividends and share buybacks. 17% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 14.8% | 1.45× | 1.24× | 26.5% |
| FY2024 | 25.7% | 1.53× | 1.27× | 50.0% |
| FY2023 | 0.4% | 1.57× | 1.40× | 1.0% |
| FY2022 | -14.4% | 1.20× | 1.40× | -24.2% |
| FY2021 | 0.3% | 0.90× | 1.37× | 0.4% |
| FY2020 | 51.1% | 0.95× | 1.55× | 75.8% |
| FY2019 | 14.2% | 1.17× | 1.95× | 32.4% |
| FY2018 | 10.5% | 1.33× | 1.62× | 22.6% |
| FY2017 | 6.8% | 1.42× | 1.31× | 12.6% |
| FY2016 | -7.8% | 1.15× | 1.29× | -11.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$140.92M
- Cash generatingOperating cash flow above zero$242.11M
- Return on assets improvedROA up on the prior year49.9% → 22.5%
- Earnings backed by cashOperating cash flow above net income$242.11M vs $140.92M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose5.30 → 3.31
- No dilutionShare count did not rise37M → 36M
- Gross margin improvedGross margin up on the prior year64.48% → 63.68%
- More efficientAsset turnover rose1.94 → 1.52
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