Appfolio Profitability Analysis
| APPF Stock | USD 238.37 4.77 1.96% |
For Appfolio profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Appfolio to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Appfolio utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Appfolio's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Appfolio over time as well as its relative position and ranking within its peers.
Appfolio |
Is Appfolio's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Appfolio. If investors know Appfolio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Appfolio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Appfolio is measured differently than its book value, which is the value of Appfolio that is recorded on the company's balance sheet. Investors also form their own opinion of Appfolio's value that differs from its market value or its book value, called intrinsic value, which is Appfolio's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Appfolio's market value can be influenced by many factors that don't directly affect Appfolio's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Appfolio's value and its price as these two are different measures arrived at by different means. Investors typically determine if Appfolio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Appfolio's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Appfolio Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Appfolio's current stock value. Our valuation model uses many indicators to compare Appfolio value to that of its competitors to determine the firm's financial worth. Appfolio is rated fourth in return on equity category among related companies. It is number one stock in return on asset category among related companies reporting about 0.41 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Appfolio is roughly 2.46 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Appfolio by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Appfolio's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Appfolio's earnings, one of the primary drivers of an investment's value.Appfolio Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Appfolio |
| = | 0.26 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Appfolio |
| = | 0.11 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Appfolio Return On Asset Comparison
Appfolio is currently under evaluation in return on asset category among related companies.
Appfolio Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Appfolio, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Appfolio will eventually generate negative long term returns. The profitability progress is the general direction of Appfolio's change in net profit over the period of time. It can combine multiple indicators of Appfolio, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California. Appfolio operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1600 people.
Appfolio Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Appfolio. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Appfolio position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Appfolio's important profitability drivers and their relationship over time.
Appfolio Profitability Trends
Appfolio profitability trend refers to the progression of profit or loss within a business. An upward trend means that Appfolio's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Appfolio's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Use Appfolio in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Appfolio position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Appfolio will appreciate offsetting losses from the drop in the long position's value.Appfolio Pair Trading
Appfolio Pair Trading Analysis
The ability to find closely correlated positions to Appfolio could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Appfolio when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Appfolio - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Appfolio to buy it.
The correlation of Appfolio is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Appfolio moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Appfolio moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Appfolio can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Appfolio position
In addition to having Appfolio in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Moderate Funds Thematic Idea Now
Moderate Funds
Funds or Etfs that combine stocks, bonds and money market instruments to get modest capital appreciation over time. The Moderate Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Moderate Funds Theme or any other thematic opportunities.
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Check out Trending Equities. For more detail on how to invest in Appfolio Stock please use our How to Invest in Appfolio guide.You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Complementary Tools for Appfolio Stock analysis
When running Appfolio's price analysis, check to measure Appfolio's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Appfolio is operating at the current time. Most of Appfolio's value examination focuses on studying past and present price action to predict the probability of Appfolio's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Appfolio's price. Additionally, you may evaluate how the addition of Appfolio to your portfolios can decrease your overall portfolio volatility.
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To fully project Appfolio's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Appfolio at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Appfolio's income statement, its balance sheet, and the statement of cash flows.