APPF

AppFolio Inc

TMT


Presented:05/15/2019
Price:$93.26
Cap:$3.17B
Current Price:$201.97
Cap:$7.33B

Presented

Date05/15/2019
Price$93.26
Market Cap$3.17B
Ent Value$2.82B
P/E Ratio169.5x
Book Value$2.80
Div Yield0%
Shares O/S34.02M
Ave Daily Vol146,906
Short Int12.96%

Current

Price$201.97
Market Cap$7.33B
AppFolio, Inc. engages in the provision of cloud-based software solutions. It caters to small and medium-sized businesses in the property management and legal industries. It offers the following solutions: AppFolio Property Manager, Tenant Screening Services, Maintenance Contact Center, Premium Leads, Tenant Debt Collections, and MyCase. The company was founded by Brian Donahoo, Klaus Schauser, and Jonathan Walker in 2006 and is headquartered in Santa Barbara, CA.

Publicly traded companies mentioned herein: Appfolio Inc (APPF), JPMorgan Chase & Co (JPM), RealPage Inc (RP)

Highlights

The presenter is long shares of Appfolio Inc (APPF), the real estate property management software company based in Santa Barbara, CA that competes with RealPage (RP) and others. APPF’s software helps customers manage their buildings by offering services such as tenant screening, rent collection, and lease creation. He appreciates the simplicity of the company’s offering, and, despite the share price’s ~50% YTD growth, he expects further appreciation from the current ~$93 on the back of secular tailwinds, TAM creation, and strong pricing power. For investors that can acquire shares of the relatively illiquid stock when natural volatility causes some dislocation, the presenter’s price target is ~$120 on the upside (20x his 2021 FCF estimate) and ~$65 on the downside.

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Idea Discussion

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