NASDAQ:APA is an undervalued gem with solid fundamentals.

Uncover the hidden value in APA CORP (NASDAQ:APA) as our stock screening tool recommends it as an undervalued choice. NASDAQ:APA maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Unpacking NASDAQ:APA's Valuation Rating

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:

• A Price/Earnings ratio of 5.35 indicates a rather cheap valuation of APA.
• Compared to the rest of the industry, the Price/Earnings ratio of APA indicates a rather cheap valuation: APA is cheaper than 86.21% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.58. APA is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 6.96, the valuation of APA can be described as very cheap.
• Based on the Price/Forward Earnings ratio, APA is valued a bit cheaper than 79.31% of the companies in the same industry.
• APA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.52.
• 91.13% 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 94.09% of the companies are valued more expensively.
• The excellent profitability rating of APA may justify a higher PE ratio.

Profitability Insights: NASDAQ:APA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:APA scores a 8 out of 10:

• APA has a Return On Assets of 11.47%. This is in the better half of the industry: APA outperforms 79.80% of its industry peers.
• Looking at the Return On Equity, with a value of 43.47%, APA belongs to the top of the industry, outperforming 92.61% of the companies in the same industry.
• APA has a Return On Invested Capital of 14.25%. This is amongst the best in the industry. APA outperforms 81.77% of its industry peers.
• The last Return On Invested Capital (14.25%) 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 has a better Profit Margin (24.18%) than 71.43% of its industry peers.
• In the last couple of years the Profit Margin of APA has grown nicely.
• APA's Operating Margin of 35.81% is fine compared to the rest of the industry. APA outperforms 72.41% of its industry peers.
• In the last couple of years the Operating Margin of APA has grown nicely.
• APA has a Gross Margin of 73.62%. This is amongst the best in the industry. APA outperforms 82.76% of its industry peers.

Health Assessment of NASDAQ:APA

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 2.03. This is a good value and a sign of high solvency as APA would need 2.03 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 2.03, APA is doing good in the industry, outperforming 75.37% of the companies in the same industry.
• 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.

Growth Examination 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:

• APA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.76% yearly.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.