NASDAQ:APA stands out as a stock that provides good value for the fundamentals it showcases.

APA CORP (NASDAQ:APA) has caught the attention of our stock screener as a great value stock. NASDAQ:APA excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Insights: NASDAQ:APA

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:APA has achieved a 8 out of 10:

• A Price/Earnings ratio of 7.00 indicates a rather cheap valuation of APA.
• Based on the Price/Earnings ratio, APA is valued a bit cheaper than the industry average as 79.62% of the companies are valued more expensively.
• APA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.45.
• Based on the Price/Forward Earnings ratio of 5.87, the valuation of APA can be described as very cheap.
• APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 86.73% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.17, APA is valued rather cheaply.
• 84.83% of the companies in the same industry are more expensive than APA, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, APA is valued cheaply inside the industry as 93.36% of the companies are valued more expensively.
• APA has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:APA

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:APA, the assigned 8 is noteworthy for profitability:

• APA's Return On Assets of 18.36% is amongst the best of the industry. APA outperforms 86.73% of its industry peers.
• With an excellent Return On Equity value of 105.29%, APA belongs to the best of the industry, outperforming 95.26% of the companies in the same industry.
• APA's Return On Invested Capital of 17.35% is amongst the best of the industry. APA outperforms 84.36% of its industry peers.
• The 3 year average ROIC (23.87%) for APA is well above the current ROIC(17.35%). The reason for the recent decline needs to be investigated.
• The Profit Margin of APA (33.39%) is better than 80.57% of its industry peers.
• In the last couple of years the Profit Margin of APA has grown nicely.
• The Operating Margin of APA (37.93%) is better than 72.04% of its industry peers.
• In the last couple of years the Operating Margin of APA has grown nicely.
• With an excellent Gross Margin value of 73.95%, APA belongs to the best of the industry, outperforming 81.99% of the companies in the same industry.

What does the Health looks like for NASDAQ:APA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:APA has achieved a 5 out of 10:

• The Debt to FCF ratio of APA is 1.65, which is an excellent value as it means it would take APA, only 1.65 years of fcf income to pay off all of its debts.
• APA has a Debt to FCF ratio of 1.65. This is in the better half of the industry: APA outperforms 79.62% of its industry peers.
• Although APA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Growth Insights: NASDAQ:APA

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:APA has received a 4 out of 10:

• APA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.76% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of APA for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.