Skip to Content

Appian Corp A APPN

Morningstar Rating
$36.15 −1.08 (2.90%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Appian Earnings: Year Closed in Style as Cloud Subscriptions Continue Healthy Growth

No-moat Appian reported fourth-quarter results above our expectations for revenue and profitability. The firm’s main growth driver, cloud subscriptions, increased 26% with near-100% gross retention, while cloud net retention ticked up to 119% as the firm demonstrated its ability to cross-sell and upsell existing customers while attracting new business. Appian continues to demonstrate its prowess in artificial intelligence and within the sticky government sector and figures to benefit from both over the long term. Considering the firm’s ability to attract and retain customers coupled with an improving margin profile, we have raised our fair value estimate to $42 per share, from $37. Shares traded significantly higher upon results and screen as slightly undervalued relative to our updated valuation.

Price vs Fair Value

APPN is trading at a 11% discount.
Price
$37.23
Fair Value
$97.00
Uncertainty
Very High
1-Star Price
$55.70
5-Star Price
$65.00
Economic Moat
Njh
Capital Allocation
Jnqwjswg

Bulls Say, Bears Say

Bulls

Appian’s cloud retention metrics are strong, indicating that once customers are on the platform, they rarely leave.

Bears

Appian has yet to turn a GAAP profit, and faces continued competition from Pegasystems, as well as larger companies such as Salesforce and ServiceNow.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if APPN is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$37.23
Day Range
$35.6236.69
52-Week Range
$30.8754.26
Bid/Ask
$35.20 / $38.36
Market Cap
$2.65 Bil
Volume/Avg
510,636 / 443,314

Key Statistics

Price/Earnings (Normalized)
Price/Sales
4.63
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Appian is a low-code enterprise platform-as-a-service company focusing on business process management. The Appian platform is an integrated automation platform providing tools for organizations to design, automate, and optimize end-to-end processes and complex business operations. Capabilities include case management, robotic process automation, artificial intelligence, data fabric, and process mining. Most of Appian’s revenue is subscription based with the remainder from services, with much of its subscription revenue being derived from its cloud-based platform, Appian Cloud.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Core
Total Number of Employees
2,243

Competitors

Valuation

Metric
APPN
PEGA
NOW
Price/Earnings (Normalized)
20.6973.53
Price/Book Value
35.8912.0221.26
Price/Sales
4.633.0118.15
Price/Cash Flow
14.5646.54
Price/Earnings
APPN
PEGA
NOW

Financial Strength

Metric
APPN
PEGA
NOW
Quick Ratio
0.891.700.94
Current Ratio
1.121.781.06
Interest Coverage
−5.0613.5330.42
Quick Ratio
APPN
PEGA
NOW

Profitability

Metric
APPN
PEGA
NOW
Return on Assets (Normalized)
−9.63%16.01%14.90%
Return on Equity (Normalized)
−63.93%110.35%34.22%
Return on Invested Capital (Normalized)
−12.85%25.78%22.89%
Return on Assets
APPN
PEGA
NOW
See how this stock stacks up to its competitors with Morningstar Investor

Software - Infrastructure Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MSFT
Microsoft CorpCmv$3.0 Tril
ORCL
Oracle CorpRzdmmbd$306.0 Bil
ADBE
Adobe IncGvtp$247.1 Bil
PANW
Palo Alto Networks IncDlwfb$115.5 Bil
SNPS
Synopsys IncDgpvgmm$84.3 Bil
CRWD
CrowdStrike Holdings Inc Class AYhrjsj$79.1 Bil
PLTR
Palantir Technologies Inc Ordinary Shares - Class AGmvdwj$53.2 Bil
FTNT
Fortinet IncTxjf$52.6 Bil
SQ
Block Inc Class AXzspmh$40.3 Bil
ZS
Zscaler IncYdzsdk$37.5 Bil

Sponsor Center