Appian Corporation Fundamental Analysis (NASDAQ: APPN)
Appian Corporation Fundamental Analysis (NASDAQ: APPN)
Appian Corporation (NASDAQ: APPN) shows moderate financial fundamentals with a PE ratio of -233.53, profit margin of -1.34%, and ROE of 16.36%. The company generates $0.8B in annual revenue with strong year-over-year growth of 17.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze APPN's fundamental strength across five key dimensions:
Efficiency Score
WeakAPPN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAPPN trades at attractive valuation levels.
Growth Score
ModerateAPPN shows steady but slowing expansion.
Financial Health Score
ModerateAPPN shows balanced financial health with some risks.
Profitability Score
ModerateAPPN maintains healthy but balanced margins.
Key Financial Metrics
Is APPN Expensive or Cheap?
P/E Ratio
APPN trades at -233.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, APPN's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Appian Corporation at -24.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 98.30 times EBITDA. This signals the market has high growth expectations.
How Well Does APPN Make Money?
Net Profit Margin
For every $100 in sales, Appian Corporation keeps $-1.34 as profit after all expenses.
Operating Margin
Core operations generate 1.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.36 in profit for every $100 of shareholder equity.
ROA
Appian Corporation generates $-1.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Appian Corporation produces operating cash flow of $81.96M, showing steady but balanced cash generation.
Free Cash Flow
Appian Corporation produces free cash flow of $77.89M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.05 in free cash annually.
FCF Yield
APPN converts 2.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-233.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
-24.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How APPN Stacks Against Its Sector Peers
| Metric | APPN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -233.53 | 33.56 | Better (Cheaper) |
| ROE | 16.36% | 815.00% | Weak |
| Net Margin | -1.34% | -1149.00% (disorted) | Weak |
| Debt/Equity | -2.81 | 0.67 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 12.44 | Weak Liquidity |
| ROA | -1.81% | 227.00% | Weak |
APPN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Appian Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
122.56%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
103.43%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
869.42%
Industry Style: Growth, Innovation, High Beta
High Growth