APA CORP (APA)
US03743Q1085 - Common Stock
APA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 205 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 has a bad growth rate and is valued cheaply. These ratings could make APA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year APA was profitable.
In the past year APA had a positive cash flow from operations.
In multiple years APA reported negative net income over the last 5 years.
In the past 5 years APA always reported a positive cash flow from operatings.
1.2 Ratios
APA has a better Return On Assets (11.47%) than 80.39% of its industry peers.
APA's Return On Equity of 43.47% is amongst the best of the industry. APA outperforms 93.14% of its industry peers.
APA has a Return On Invested Capital of 14.25%. This is amongst the best in the industry. APA outperforms 82.84% of its industry peers.
APA had an Average Return On Invested Capital over the past 3 years of 23.87%. This is significantly below the industry average of 29.02%.
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
APA has a Profit Margin of 24.18%. This is in the better half of the industry: APA outperforms 71.08% of its industry peers.
In the last couple of years the Profit Margin of APA has grown nicely.
With a decent Operating Margin value of 35.81%, APA is doing good in the industry, outperforming 72.55% of the companies in the same industry.
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.
APA's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for APA has been reduced compared to 1 year ago.
Compared to 5 years ago, APA has less shares outstanding
The debt/assets ratio for APA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that APA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of APA (1.22) is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 2.03, APA is in the better half of the industry, outperforming 75.98% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that APA has dependencies on debt financing.
APA has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: APA underperforms 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.83
WACC7.79%
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 comparable to the rest of the industry.
A Quick Ratio of 1.07 indicates that APA should not have too much problems paying its short term obligations.
APA's Quick ratio of 1.07 is in line compared to the rest of the industry. APA outperforms 51.96% of its industry peers.
| 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%.
Measured over the past years, APA shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.76% on average per year.
Looking at the last year, APA shows a small growth in Revenue. The Revenue has grown by 7.08% in the last year.
The Revenue has been growing slightly by 1.45% on average over the past years.
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
The Earnings Per Share is expected to decrease by -8.00% on average over the next years.
The Revenue is expected to grow by 1.57% on average over the next years.
EPS Next Y-11.69%
EPS Next 2Y-18.76%
EPS Next 3Y-10.8%
EPS Next 5Y-8%
Revenue Next Year12.25%
Revenue Next 2Y3.32%
Revenue Next 3Y2.06%
Revenue Next 5Y1.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 5.13, the valuation of APA can be described as very cheap.
Based on the Price/Earnings ratio, APA is valued cheaper than 85.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. APA is valued rather cheaply when compared to this.
APA is valuated cheaply with a Price/Forward Earnings ratio of 7.05.
Based on the Price/Forward Earnings ratio, APA is valued a bit cheaper than 75.98% of the companies in the same industry.
APA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APA indicates a rather cheap valuation: APA is cheaper than 90.69% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APA indicates a rather cheap valuation: APA is cheaper than 95.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.48 | ||
| EV/EBITDA | 2.61 |
4.3 Compensation for Growth
The excellent profitability rating of APA may justify a higher PE ratio.
APA's earnings are expected to decrease with -10.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-18.76%
EPS Next 3Y-10.8%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 4.36%, which is a nice return.
APA's Dividend Yield is a higher than the industry average which is at 6.85.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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-18.76%
EPS Next 3Y-10.8%
APA CORP
NASDAQ:APA (12/20/2024, 8:00:00 PM)
After market: 21.02 -0.02 (-0.1%)21.04
+0.56 (+2.73%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.26%
Inst Owner Change1.76%
Ins Owners0.78%
Ins Owner Change0.17%
Market Cap7.78B
Analysts65.14
Price Target32.93 (56.51%)
Short Float %5.56%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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)-6.77%
PT rev (3m)-15.54%
EPS NQ rev (1m)6.76%
EPS NQ rev (3m)-22.96%
EPS NY rev (1m)2.23%
EPS NY rev (3m)-9.62%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)-8.33%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 7.05 | ||
| P/S | 0.85 | ||
| P/FCF | 2.48 | ||
| P/OCF | 2.15 | ||
| P/B | 1.52 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 2.61 |
EPS(TTM)4.1
EY19.49%
EPS(NY)2.98
Fwd EY14.18%
FCF(TTM)8.47
FCFY40.28%
OCF(TTM)9.77
OCFY46.43%
SpS24.85
BVpS13.82
TBVpS13.82
PEG (NY)N/A
PEG (5Y)0.25
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 | 1.22 |
F-Score8
WACC7.79%
ROIC/WACC1.83
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-11.69%
EPS Next 2Y-18.76%
EPS Next 3Y-10.8%
EPS Next 5Y-8%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.06%
Revenue Next Year12.25%
Revenue Next 2Y3.32%
Revenue Next 3Y2.06%
Revenue Next 5Y1.57%
EBIT growth 1Y-4.41%
EBIT growth 3Y152.48%
EBIT growth 5Y9.67%
EBIT Next Year56.45%
EBIT Next 3Y12.25%
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%