NASDAQ:APA appears to be flying under the radar despite its strong fundamentals.

APA CORP (NASDAQ:APA) was identified as a decent value stock by our stock screener. NASDAQ:APA scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

What does the Valuation looks like for NASDAQ:APA

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:APA boasts a 8 out of 10:

• APA is valuated cheaply with a Price/Earnings ratio of 7.55.
• Based on the Price/Earnings ratio, APA is valued a bit cheaper than 76.08% of the companies in the same industry.
• When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (24.34), we can say APA is valued rather cheaply.
• A Price/Forward Earnings ratio of 6.33 indicates a rather cheap valuation of APA.
• APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 83.73% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.80, APA is valued rather cheaply.
• 84.21% 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 cheaper than 92.34% of the companies in the same industry.
• The excellent profitability rating of APA may justify a higher PE ratio.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:APA has earned a 8 out of 10:

• APA has a better Return On Assets (18.36%) than 87.56% of its industry peers.
• With an excellent Return On Equity value of 105.29%, APA belongs to the best of the industry, outperforming 95.22% 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 84.69% of its industry peers.
• The last Return On Invested Capital (17.35%) for APA is well below the 3 year average (23.87%), which needs to be investigated, but indicates that APA had better years and this may not be a problem.
• APA's Profit Margin of 33.39% is amongst the best of the industry. APA outperforms 80.86% of its industry peers.
• APA's Profit Margin has improved in the last couple of years.
• The Operating Margin of APA (37.93%) is better than 72.73% of its industry peers.
• In the last couple of years the Operating Margin of APA has grown nicely.
• APA's Gross Margin of 73.95% is amongst the best of the industry. APA outperforms 82.30% of its industry peers.

Understanding NASDAQ:APA's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:APA, the assigned 5 for health provides valuable insights:

• APA has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of 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 79.43% of its industry peers.
• Even though the debt/equity ratio score it not favorable for APA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Assessing Growth for NASDAQ:APA

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:APA has achieved a 4 out of 10:

• Measured over the past years, APA shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.76% on average per year.
• 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 article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.