APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock
Taking everything into account, APA scores 6 out of 10 in our fundamental rating. APA was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. APA scores excellent on profitability, but there are some minor concerns on its financial health. APA is valued quite cheap, but it does not seem to be growing. With these ratings, APA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year APA was profitable.
APA had a positive operating cash flow in the past year.
In multiple years APA reported negative net income over the last 5 years.
Each year in the past 5 years APA had a positive operating cash flow.
1.2 Ratios
APA has a Return On Assets of 11.47%. This is amongst the best in the industry. APA outperforms 81.07% of its industry peers.
The Return On Equity of APA (43.47%) is better than 92.72% of its industry peers.
APA has a better Return On Invested Capital (14.25%) than 82.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APA is below the industry average of 28.71%.
The 3 year average ROIC (23.87%) for APA is well above the current ROIC(14.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.47% | ||
| ROE | 43.47% | ||
| ROIC | 14.25% |
ROA(3y)18%
ROA(5y)-0.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.87%
ROIC(5y)15.47%
1.3 Margins
Looking at the Profit Margin, with a value of 24.18%, APA is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
APA's Profit Margin has improved in the last couple of years.
APA's Operating Margin of 35.81% is fine compared to the rest of the industry. APA outperforms 73.30% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
Looking at the Gross Margin, with a value of 73.62%, APA belongs to the top of the industry, outperforming 82.04% 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 | 35.81% | ||
| PM (TTM) | 24.18% | ||
| GM | 73.62% |
OM growth 3Y105.06%
OM growth 5Y8.11%
PM growth 3YN/A
PM growth 5Y131.46%
GM growth 3Y3.46%
GM growth 5Y-0.85%
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.
Compared to 1 year ago, APA has less shares outstanding
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 1.27, we must say that APA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, APA is in line with its industry, outperforming 43.69% of the companies in the same industry.
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.
APA has a Debt to FCF ratio of 2.03. This is in the better half of the industry: APA outperforms 76.21% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that APA has dependencies on debt financing.
The Debt to Equity ratio of APA (1.25) is worse than 75.73% 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 | 1.25 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.77
WACC8.07%
2.3 Liquidity
APA has a Current Ratio of 1.24. This is a normal value and indicates that APA is financially healthy and should not expect problems in meeting its short term obligations.
APA has a Current ratio (1.24) which is in line with its industry peers.
A Quick Ratio of 1.07 indicates that APA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.07, APA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
APA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.46%.
APA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.76% yearly.
Looking at the last year, APA shows a small growth in Revenue. The Revenue has grown by 7.08% in the last year.
APA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.45% yearly.
EPS 1Y (TTM)-15.46%
EPS 3YN/A
EPS 5Y20.76%
EPS Q2Q%-24.81%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.06%
3.2 Future
APA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.00% yearly.
The Revenue is expected to grow by 1.57% on average over the next years.
EPS Next Y-11.77%
EPS Next 2Y-16.59%
EPS Next 3Y-9.85%
EPS Next 5Y-8%
Revenue Next Year14.03%
Revenue Next 2Y3.31%
Revenue Next 3Y2.19%
Revenue Next 5Y1.57%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.78, the valuation of APA can be described as very cheap.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (28.29), we can say APA is valued rather cheaply.
APA is valuated cheaply with a Price/Forward Earnings ratio of 7.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APA indicates a somewhat cheap valuation: APA is cheaper than 77.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (24.44), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
90.29% of the companies in the same industry are more expensive than APA, based on the Enterprise Value to EBITDA ratio.
94.17% of the companies in the same industry are more expensive than APA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.8 | ||
| EV/EBITDA | 2.83 |
4.3 Compensation for Growth
The excellent profitability rating of APA may justify a higher PE ratio.
A cheap valuation may be justified as APA's earnings are expected to decrease with -9.85% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-16.59%
EPS Next 3Y-9.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, APA has a reasonable but not impressive dividend return.
APA's Dividend Yield is a higher than the industry average which is at 6.39.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of APA decreases each year by -0.20%.
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)-0.2%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
15.11% of the earnings are spent on dividend by APA. This is a low number and sustainable payout ratio.
APA's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP15.11%
EPS Next 2Y-16.59%
EPS Next 3Y-9.85%
APA CORP
NASDAQ:APA (1/21/2025, 8:00:00 PM)
Premarket: 23.25 -0.45 (-1.9%)23.7
-0.7 (-2.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.14%
Inst Owner Change-0.14%
Ins Owners0.23%
Ins Owner Change1.3%
Market Cap8.77B
Analysts64.57
Price Target32.12 (35.53%)
Short Float %6.04%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend1
Dividend Growth(5Y)-0.2%
DP15.11%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.75%
Min EPS beat(2)-2.21%
Max EPS beat(2)23.7%
EPS beat(4)1
Avg EPS beat(4)-2.99%
Min EPS beat(4)-17.94%
Max EPS beat(4)23.7%
EPS beat(8)5
Avg EPS beat(8)6.11%
EPS beat(12)7
Avg EPS beat(12)2.93%
EPS beat(16)11
Avg EPS beat(16)9.65%
Revenue beat(2)1
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-9.89%
Max Revenue beat(2)4.52%
Revenue beat(4)1
Avg Revenue beat(4)-10.07%
Min Revenue beat(4)-22.07%
Max Revenue beat(4)4.52%
Revenue beat(8)4
Avg Revenue beat(8)-2.33%
Revenue beat(12)8
Avg Revenue beat(12)4.01%
Revenue beat(16)12
Avg Revenue beat(16)8.14%
PT rev (1m)-2.46%
PT rev (3m)-14.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.33%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.95 | ||
| P/FCF | 2.8 | ||
| P/OCF | 2.43 | ||
| P/B | 1.71 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 2.83 |
EPS(TTM)4.1
EY17.3%
EPS(NY)3.14
Fwd EY13.27%
FCF(TTM)8.47
FCFY35.76%
OCF(TTM)9.77
OCFY41.22%
SpS24.85
BVpS13.82
TBVpS13.82
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.47% | ||
| ROE | 43.47% | ||
| ROCE | 20.01% | ||
| ROIC | 14.25% | ||
| ROICexc | 14.3% | ||
| ROICexgc | 14.3% | ||
| OM | 35.81% | ||
| PM (TTM) | 24.18% | ||
| GM | 73.62% | ||
| FCFM | 34.11% |
ROA(3y)18%
ROA(5y)-0.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.87%
ROIC(5y)15.47%
ROICexc(3y)24.36%
ROICexc(5y)15.78%
ROICexgc(3y)24.36%
ROICexgc(5y)15.78%
ROCE(3y)33.52%
ROCE(5y)21.72%
ROICexcg growth 3Y141.62%
ROICexcg growth 5Y18.36%
ROICexc growth 3Y141.62%
ROICexc growth 5Y18.36%
OM growth 3Y105.06%
OM growth 5Y8.11%
PM growth 3YN/A
PM growth 5Y131.46%
GM growth 3Y3.46%
GM growth 5Y-0.85%
F-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 23.53% | ||
| Cap/Sales | 5.21% | ||
| Interest Coverage | 9.22 | ||
| Cash Conversion | 67.83% | ||
| Profit Quality | 141.03% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.27 |
F-Score8
WACC8.07%
ROIC/WACC1.77
Cap/Depr(3y)143.13%
Cap/Depr(5y)122.67%
Cap/Sales(3y)21.35%
Cap/Sales(5y)27.81%
Profit Quality(3y)113.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.46%
EPS 3YN/A
EPS 5Y20.76%
EPS Q2Q%-24.81%
EPS Next Y-11.77%
EPS Next 2Y-16.59%
EPS Next 3Y-9.85%
EPS Next 5Y-8%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.06%
Revenue Next Year14.03%
Revenue Next 2Y3.31%
Revenue Next 3Y2.19%
Revenue Next 5Y1.57%
EBIT growth 1Y-4.41%
EBIT growth 3Y152.48%
EBIT growth 5Y9.67%
EBIT Next Year59.33%
EBIT Next 3Y12.99%
EBIT Next 5Y7.04%
FCF growth 1Y23.47%
FCF growth 3Y107.83%
FCF growth 5YN/A
OCF growth 1Y-21.69%
OCF growth 3Y31.12%
OCF growth 5Y-3.69%