25.55 USD
-0.99 (-3.73%)
25.5304 USD
-0.02 (-0.08%)
APA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 207 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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
- APA has a better Return On Assets (8.53%) than 85.51% of its industry peers.
- APA has a better Return On Equity (25.30%) than 90.82% of its industry peers.
- APA has a Return On Invested Capital of 14.25%. This is amongst the best in the industry. APA outperforms 92.27% 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 21.94%.
- The last Return On Invested Capital (14.25%) 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 | 8.53% | ||
| ROE | 25.3% | ||
| ROIC | 14.25% |
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
- Looking at the Profit Margin, with a value of 15.65%, APA is in the better half of the industry, outperforming 67.63% of the companies in the same industry.
- APA's Profit Margin has declined in the last couple of years.
- APA's Operating Margin of 30.75% is fine compared to the rest of the industry. APA outperforms 76.33% of its industry peers.
- In the last couple of years the Operating Margin of APA has grown nicely.
- APA's Gross Margin of 69.21% is fine compared to the rest of the industry. APA outperforms 77.29% 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 | 30.75% | ||
| PM (TTM) | 15.65% | ||
| GM | 69.21% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- The debt/assets ratio for APA has been reduced compared to a year ago.
2.2 Solvency
- APA has an Altman-Z score of 1.46. This is a bad value and indicates that APA is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.46, APA perfoms like the industry average, outperforming 54.59% of the companies in the same industry.
- The Debt to FCF ratio of APA is 0.94, which is an excellent value as it means it would take APA, only 0.94 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.94, APA belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that APA is somewhat dependend on debt financing.
- APA has a worse Debt to Equity ratio (0.72) than 62.80% of its industry peers.
- 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 | 0.72 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.46 |
ROIC/WACC1.74
WACC8.21%
2.3 Liquidity
- APA has a Current Ratio of 0.78. This is a bad value and indicates that APA is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.78, APA is doing worse than 69.08% of the companies in the same industry.
- A Quick Ratio of 0.63 indicates that APA may have some problems paying its short term obligations.
- The Quick ratio of APA (0.63) is worse than 68.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- APA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.98%.
- APA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 245758.95% yearly.
- Looking at the last year, APA shows a small growth in Revenue. The Revenue has grown by 4.88% in the last year.
- APA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.
EPS 1Y (TTM)-10.98%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%-7%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%2.77%
3.2 Future
- Based on estimates for the next years, APA will show a small growth in Earnings Per Share. The EPS will grow by 7.84% on average per year.
- 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-3.42%
EPS Next 2Y-12.69%
EPS Next 3Y-4.87%
EPS Next 5Y7.84%
Revenue Next Year3.36%
Revenue Next 2Y-6.52%
Revenue Next 3Y-2.4%
Revenue Next 5Y0.39%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- The Price/Earnings ratio is 7.00, which indicates a rather cheap valuation of APA.
- 88.89% of the companies in the same industry are more expensive than APA, based on the Price/Earnings ratio.
- APA is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.96 indicates a reasonable valuation of APA.
- Based on the Price/Forward Earnings ratio, APA is valued cheaper than 82.13% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (24.32), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
- APA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. APA is cheaper than 95.65% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 98.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.91 | ||
| EV/EBITDA | 2.51 |
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 -4.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-12.69%
EPS Next 3Y-4.87%
5. Dividend
5.1 Amount
- APA has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
- APA's Dividend Yield is a higher than the industry average which is at 3.75.
- APA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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
- 24.12% 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.
DP24.12%
EPS Next 2Y-12.69%
EPS Next 3Y-4.87%
APA CORP / APA FAQ
Can you provide the ChartMill fundamental rating for APA CORP?
ChartMill assigns a fundamental rating of 6 / 10 to APA.
What is the valuation status for APA stock?
ChartMill assigns a valuation rating of 8 / 10 to APA CORP (APA). This can be considered as Undervalued.
Can you provide the profitability details for APA CORP?
APA CORP (APA) has a profitability rating of 7 / 10.
What is the valuation of APA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APA CORP (APA) is 7 and the Price/Book (PB) ratio is 1.52.
Can you provide the expected EPS growth for APA stock?
The Earnings per Share (EPS) of APA CORP (APA) is expected to decline by -3.42% in the next year.