APA CORP (APA) Stock Fundamental Analysis
USA - NASDAQ:APA - US03743Q1085 - Common Stock
22.52 USD
-0.48 (-2.09%)
22.61 USD
+0.09 (+0.4%)
Overall APA gets a fundamental rating of 6 out of 10. We evaluated APA against 211 industry peers in the Oil, Gas & Consumable Fuels industry. APA has an excellent profitability rating, but there are some minor concerns on its financial health. APA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally APA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year APA was profitable.
APA had a positive operating cash flow in the past year.
APA had positive earnings in 4 of the past 5 years.
APA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.98%, APA is doing good in the industry, outperforming 68.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.31%, APA belongs to the top of the industry, outperforming 80.57% of the companies in the same industry.
APA has a better Return On Invested Capital (15.16%) than 92.42% of its industry peers.
APA had an Average Return On Invested Capital over the past 3 years of 23.28%. This is in line with the industry average of 21.53%.
The 3 year average ROIC (23.28%) for APA is well above the current ROIC(15.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.31% | ||
| ROIC | 15.16% |
ROA(3y)16.94%
ROA(5y)4%
ROE(3y)330.44%
ROE(5y)N/A
ROIC(3y)23.28%
ROIC(5y)17.78%
1.3 Margins
APA has a Profit Margin (10.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of APA has declined.
APA has a better Operating Margin (31.52%) than 77.25% of its industry peers.
APA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 69.00%, APA is doing good in the industry, outperforming 78.20% of the companies in the same industry.
In the last couple of years the Gross Margin of APA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.52% | ||
| PM (TTM) | 10.75% | ||
| GM | 69% |
OM growth 3Y-0.88%
OM growth 5Y16.38%
PM growth 3Y-12.17%
PM growth 5YN/A
GM growth 3Y3.59%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
APA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
APA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, APA has less shares outstanding
Compared to 1 year ago, APA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that APA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of APA (1.41) is comparable to the rest of the industry.
The Debt to FCF ratio of APA is 1.03, which is an excellent value as it means it would take APA, only 1.03 years of fcf income to pay off all of its debts.
APA has a better Debt to FCF ratio (1.03) than 88.15% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that APA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, APA is doing worse than 61.61% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.85
WACC8.19%
2.3 Liquidity
APA has a Current Ratio of 0.80. This is a bad value and indicates that APA is not financially healthy enough and could expect problems in meeting its short term obligations.
APA has a Current ratio of 0.80. This is in the lower half of the industry: APA underperforms 66.35% of its industry peers.
A Quick Ratio of 0.67 indicates that APA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, APA is doing worse than 72.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for APA have decreased strongly by -16.03% in the last year.
Measured over the past years, APA shows a very strong growth in Earnings Per Share. The EPS has been growing by 245758.95% on average per year.
Looking at the last year, APA shows a quite strong growth in Revenue. The Revenue has grown by 12.13% in the last year.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.03%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%-25.64%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%6.61%
3.2 Future
The Earnings Per Share is expected to grow by 13.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.39% on average over the next years.
EPS Next Y-5.64%
EPS Next 2Y-8.39%
EPS Next 3Y-0.88%
EPS Next 5Y13.74%
Revenue Next Year4.88%
Revenue Next 2Y-3.62%
Revenue Next 3Y-1.36%
Revenue Next 5Y0.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.05, the valuation of APA can be described as very cheap.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 89.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (27.40), we can say APA is valued rather cheaply.
APA is valuated cheaply with a Price/Forward Earnings ratio of 7.18.
85.31% of the companies in the same industry are more expensive than APA, based on the Price/Forward Earnings ratio.
APA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
93.84% 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 98.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.82 | ||
| EV/EBITDA | 2.27 |
4.3 Compensation for Growth
The decent profitability rating of APA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-8.39%
EPS Next 3Y-0.88%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 4.23%, which is a nice return.
APA's Dividend Yield is a higher than the industry average which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.38, APA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
The dividend of APA has a limited annual growth rate of 1.06%.
APA has been paying a dividend for at least 10 years, so it has a reliable track record.
APA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.06%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
33.86% of the earnings are spent on dividend by APA. This is a low number and sustainable payout ratio.
APA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.86%
EPS Next 2Y-8.39%
EPS Next 3Y-0.88%
22.52
-0.48 (-2.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change0.01%
Ins Owners0.19%
Ins Owner Change0.1%
Market Cap8.06B
Analysts57.3
Price Target24.58 (9.15%)
Short Float %11.14%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend1.06
Dividend Growth(5Y)1.06%
DP33.86%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.03%
Min EPS beat(2)26.52%
Max EPS beat(2)79.53%
EPS beat(4)2
Avg EPS beat(4)21.08%
Min EPS beat(4)-19.51%
Max EPS beat(4)79.53%
EPS beat(8)4
Avg EPS beat(8)11.9%
EPS beat(12)8
Avg EPS beat(12)12.08%
EPS beat(16)10
Avg EPS beat(16)7.94%
Revenue beat(2)1
Avg Revenue beat(2)9.83%
Min Revenue beat(2)-6.04%
Max Revenue beat(2)25.7%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-12.36%
Max Revenue beat(4)25.7%
Revenue beat(8)3
Avg Revenue beat(8)-3.78%
Revenue beat(12)6
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)4.86%
PT rev (1m)0.77%
PT rev (3m)8.09%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)16.54%
EPS NY rev (1m)4.25%
EPS NY rev (3m)16.43%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)12.78%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)17.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 7.18 | ||
| P/S | 0.8 | ||
| P/FCF | 1.82 | ||
| P/OCF | 1.73 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)3.72
EY16.52%
EPS(NY)3.14
Fwd EY13.94%
FCF(TTM)12.36
FCFY54.87%
OCF(TTM)13
OCFY57.74%
SpS28.11
BVpS16.5
TBVpS16.5
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.31% | ||
| ROCE | 20.81% | ||
| ROIC | 15.16% | ||
| ROICexc | 15.26% | ||
| ROICexgc | 15.26% | ||
| OM | 31.52% | ||
| PM (TTM) | 10.75% | ||
| GM | 69% | ||
| FCFM | 43.96% |
ROA(3y)16.94%
ROA(5y)4%
ROE(3y)330.44%
ROE(5y)N/A
ROIC(3y)23.28%
ROIC(5y)17.78%
ROICexc(3y)23.81%
ROICexc(5y)18.21%
ROICexgc(3y)23.81%
ROICexgc(5y)18.21%
ROCE(3y)31.97%
ROCE(5y)24.42%
ROICexcg growth 3Y-6.49%
ROICexcg growth 5Y26.52%
ROICexc growth 3Y-6.49%
ROICexc growth 5Y26.52%
OM growth 3Y-0.88%
OM growth 5Y16.38%
PM growth 3Y-12.17%
PM growth 5YN/A
GM growth 3Y3.59%
GM growth 5Y-0.98%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 9.54% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 9.08 | ||
| Cash Conversion | 83.21% | ||
| Profit Quality | 408.97% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.41 |
F-Score6
WACC8.19%
ROIC/WACC1.85
Cap/Depr(3y)158.67%
Cap/Depr(5y)126.26%
Cap/Sales(3y)26.67%
Cap/Sales(5y)24.66%
Profit Quality(3y)61.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.03%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%-25.64%
EPS Next Y-5.64%
EPS Next 2Y-8.39%
EPS Next 3Y-0.88%
EPS Next 5Y13.74%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%6.61%
Revenue Next Year4.88%
Revenue Next 2Y-3.62%
Revenue Next 3Y-1.36%
Revenue Next 5Y0.39%
EBIT growth 1Y-5.15%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year49.02%
EBIT Next 3Y12.77%
EBIT Next 5Y8%
FCF growth 1Y304.85%
FCF growth 3Y-33.24%
FCF growth 5YN/A
OCF growth 1Y20.77%
OCF growth 3Y1.17%
OCF growth 5Y4.77%