For those who appreciate value investing, NASDAQ:APA is a compelling option with its solid fundamentals.

Discover APA CORP (NASDAQ:APA)—an undervalued stock our stock screener has picked out. NASDAQ:APA demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Analysis for NASDAQ:APA

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:APA has earned a 8 for valuation:

• APA is valuated cheaply with a Price/Earnings ratio of 5.43.
• APA's Price/Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 85.29% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.16. APA is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 7.46, the valuation of APA can be described as very cheap.
• APA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APA is cheaper than 75.98% 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 23.72.
• Based on the Enterprise Value to EBITDA ratio, APA is valued cheaply inside the industry as 89.71% of the companies are valued more expensively.
• APA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APA is cheaper than 95.59% of the companies in the same industry.
• APA has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:APA

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:APA, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 11.47%, APA belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
• With an excellent Return On Equity value of 43.47%, APA belongs to the best of the industry, outperforming 93.14% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 14.25%, APA belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.
• 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.
• With a decent Profit Margin value of 24.18%, APA is doing good in the industry, outperforming 71.08% of the companies in the same industry.
• In the last couple of years the Profit Margin of APA has grown nicely.
• APA has a better Operating Margin (35.81%) than 72.55% 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 73.62%, APA belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.

A Closer Look at Health for NASDAQ:APA

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:APA, the assigned 5 reflects its health status:

• The Debt to FCF ratio of APA is 2.03, which is a good value as it means it would take APA, 2.03 years of fcf income to pay off all of its debts.
• APA's Debt to FCF ratio of 2.03 is fine compared to the rest of the industry. APA outperforms 75.98% 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.

Growth Insights: NASDAQ:APA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:APA scores a 4 out of 10:

• The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of APA contains the most current fundamental analsysis.

Disclaimer

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.