What’s going on in the markets? And what are our favorite stocks? One name worth watching is AppFolio Inc. (APPF), highlights Pieter Slegers, editor of Compounding Quality.
AppFolio’s tools help manage rental homes, collect rent, screen tenants, and work with investors, all in one place. They also offer additional services, including online payments and insurance. The company started in 2006 and is based in California.
AppFolio makes money by charging monthly subscription fees to property managers for using its software. It also earns revenue from extra services like payment processing, tenant screening, and maintenance coordination.
Since its IPO in 2015, AppFolio has compounded at an average annual growth rate of 31.1%. But there is still plenty of room for growth. Analysts expect the company to grow its EPS by 18% in the long term.
The fundamentals of AppFolio look like this:
• Debt/Equity: 0.1x
• Net Profit Margin: 23.9%
• ROIC: 13.1%
• Forward PE: 39.3x
• Expected Long-Term EPS Growth: 18%
• CAGR since 2015: 31.1%
Recommended Action: Buy APPF.
