APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock - Currency: USD
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. While APA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. APA may be a bit undervalued, certainly considering the very reasonable score on growth APA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
APA had positive earnings in the past year.
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
APA has a better Return On Assets (5.50%) than 63.03% of its industry peers.
The Return On Equity of APA (18.75%) is better than 81.04% of its industry peers.
APA's Return On Invested Capital of 15.67% is amongst the best of the industry. APA outperforms 91.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APA is in line with the industry average of 23.79%.
The last Return On Invested Capital (15.67%) for APA is well below the 3 year average (23.28%), which needs to be investigated, but indicates that APA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 18.75% | ||
| ROIC | 15.67% |
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
With a Profit Margin value of 9.78%, APA perfoms like the industry average, outperforming 56.40% of the companies in the same industry.
In the last couple of years the Profit Margin of APA has declined.
APA has a better Operating Margin (32.56%) than 73.93% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
APA has a better Gross Margin (70.09%) than 78.67% of its industry peers.
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 | 32.56% | ||
| PM (TTM) | 9.78% | ||
| GM | 70.09% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APA is creating value.
APA has more shares outstanding than it did 1 year ago.
APA has less shares outstanding than it did 5 years ago.
APA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that APA is in the distress zone and has some risk of bankruptcy.
APA has a Altman-Z score (1.35) which is in line with its industry peers.
APA has a debt to FCF ratio of 1.33. This is a very positive value and a sign of high solvency as it would only need 1.33 years to pay back of all of its debts.
APA has a Debt to FCF ratio of 1.33. This is amongst the best in the industry. APA outperforms 87.68% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that APA is somewhat dependend on debt financing.
APA has a worse Debt to Equity ratio (0.96) than 67.77% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.76
WACC8.88%
2.3 Liquidity
APA has a Current Ratio of 0.89. This is a bad value and indicates that APA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.89, APA is not doing good in the industry: 63.51% of the companies in the same industry are doing better.
APA has a Quick Ratio of 0.89. This is a bad value and indicates that APA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, APA is not doing good in the industry: 66.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
APA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.19%.
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 very strong growth in Revenue. The Revenue has grown by 26.76%.
Measured over the past years, APA shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
EPS 1Y (TTM)-2.19%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%35.9%
Revenue 1Y (TTM)26.76%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
3.2 Future
APA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.27% yearly.
APA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.39% yearly.
EPS Next Y-19.3%
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
EPS Next 5Y12.27%
Revenue Next Year-11.02%
Revenue Next 2Y-7.31%
Revenue Next 3Y-2.37%
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
APA is valuated cheaply with a Price/Earnings ratio of 5.00.
Compared to the rest of the industry, the Price/Earnings ratio of APA indicates a rather cheap valuation: APA is cheaper than 90.05% of the companies listed in the same industry.
APA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.96, the valuation of APA can be described as very cheap.
83.89% of the companies in the same industry are more expensive than APA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (21.76), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APA is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 97.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.8 | ||
| EV/EBITDA | 2.16 |
4.3 Compensation for Growth
APA has a very decent profitability rating, which may justify a higher PE ratio.
APA's earnings are expected to decrease with -2.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, APA is a good candidate for dividend investing.
APA's Dividend Yield is a higher than the industry average which is at 6.51.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
The dividend of APA has a limited annual growth rate of 1.06%.
APA has paid a dividend for at least 10 years, which is 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
36.11% of the earnings are spent on dividend by APA. This is a low number and sustainable payout ratio.
The dividend of APA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.11%
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
20.11
-0.29 (-1.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change3.54%
Market Cap7.26B
Analysts63.64
Price Target22.74 (13.08%)
Short Float %10.93%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend1.06
Dividend Growth(5Y)1.06%
DP36.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.5%
Min EPS beat(2)-19.51%
Max EPS beat(2)26.52%
EPS beat(4)2
Avg EPS beat(4)7.13%
Min EPS beat(4)-19.51%
Max EPS beat(4)26.52%
EPS beat(8)4
Avg EPS beat(8)3.46%
EPS beat(12)8
Avg EPS beat(12)5.5%
EPS beat(16)10
Avg EPS beat(16)4.38%
Revenue beat(2)0
Avg Revenue beat(2)-10.28%
Min Revenue beat(2)-12.36%
Max Revenue beat(2)-8.19%
Revenue beat(4)1
Avg Revenue beat(4)-6.48%
Min Revenue beat(4)-12.36%
Max Revenue beat(4)4.52%
Revenue beat(8)3
Avg Revenue beat(8)-6.63%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)10
Avg Revenue beat(16)4.3%
PT rev (1m)-0.94%
PT rev (3m)-20.09%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-31.82%
EPS NY rev (1m)1.21%
EPS NY rev (3m)-16.16%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-12.51%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-8.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5 | ||
| Fwd PE | 6.96 | ||
| P/S | 0.7 | ||
| P/FCF | 1.8 | ||
| P/OCF | 1.67 | ||
| P/B | 1.33 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 2.16 |
EPS(TTM)4.02
EY19.99%
EPS(NY)2.89
Fwd EY14.37%
FCF(TTM)11.16
FCFY55.51%
OCF(TTM)12.05
OCFY59.92%
SpS28.88
BVpS15.06
TBVpS15.06
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 18.75% | ||
| ROCE | 21.52% | ||
| ROIC | 15.67% | ||
| ROICexc | 15.74% | ||
| ROICexgc | 15.74% | ||
| OM | 32.56% | ||
| PM (TTM) | 9.78% | ||
| GM | 70.09% | ||
| FCFM | 38.65% |
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 | 0.96 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 12.91% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 74.05% | ||
| Profit Quality | 395.29% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.35 |
F-Score6
WACC8.88%
ROIC/WACC1.76
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)-2.19%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%35.9%
EPS Next Y-19.3%
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
EPS Next 5Y12.27%
Revenue 1Y (TTM)26.76%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
Revenue Next Year-11.02%
Revenue Next 2Y-7.31%
Revenue Next 3Y-2.37%
Revenue Next 5Y0.39%
EBIT growth 1Y8.78%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year47.97%
EBIT Next 3Y13.67%
EBIT Next 5Y5.31%
FCF growth 1Y121.44%
FCF growth 3Y-33.24%
FCF growth 5YN/A
OCF growth 1Y-0.89%
OCF growth 3Y1.17%
OCF growth 5Y4.77%