With Appian Stock Sliding, Have You Assessed The Risk?
Appian (APPN) stock is down 13.9% in 21 trading days. The recent slide reflects renewed concerns around Appian’s moderating cloud revenue growth and ongoing profitability challenges, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Appian stands today.
- Size: Appian is a $2.8 Bil company with $691 Mil in revenue currently trading at $38.07.
- Fundamentals: Last 12 month revenue growth of 16.0% and operating margin of 0.9%.
- Liquidity: Has Debt to Equity ratio of 0.14 and Cash to Assets ratio of 0.31
- Valuation: Appian stock is currently trading at P/E multiple of -309.5 and P/EBIT multiple of 123.3
- Has returned (median) -29.2% within a year following sharp dips since 2010. See APPN Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell APPN Stock
That brings us to the key consideration for investors worried about this fall: how resilient is APPN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose APPN stock falls another 20-30% to $27 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- APPN stock fell 86.8% from a high of $235.24 on 27 January 2021 to $31.12 on 10 January 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $53.90 on 13 June 2023 , and currently trades at $38.07
| APPN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -86.8% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- APPN stock fell 50.5% from a high of $63.30 on 18 February 2020 to $31.36 on 3 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 September 2020
| APPN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -50.5% | -33.9% |
| Time to Full Recovery | 179 days | 148 days |
2018 Correction
- APPN stock fell 46.6% from a high of $43.06 on 18 June 2018 to $22.99 on 24 October 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 August 2019
| APPN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.6% | -19.8% |
| Time to Full Recovery | 288 days | 120 days |
Feeling jittery about APPN stock? Consider portfolio approach.
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