APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock - Currency: USD
APA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a bad growth rate and is valued cheaply. These ratings would make APA suitable 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.
The reported net income has been mixed in the past 5 years: APA reported negative net income in multiple years.
Each year in the past 5 years APA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of APA (11.47%) is better than 82.35% of its industry peers.
Looking at the Return On Equity, with a value of 43.47%, APA belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
APA has a better Return On Invested Capital (14.25%) than 82.35% of its industry peers.
APA had an Average Return On Invested Capital over the past 3 years of 23.87%. This is below the industry average of 28.75%.
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
With a decent Profit Margin value of 24.18%, APA is doing good in the industry, outperforming 72.55% of the companies in the same industry.
APA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 35.81%, APA is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
In the last couple of years the Operating Margin of APA has grown nicely.
APA has a Gross Margin of 73.62%. This is amongst the best in the industry. APA outperforms 81.86% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APA is creating value.
APA has less shares outstanding than it did 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 1.26, we must say that APA is in the distress zone and has some risk of bankruptcy.
APA's Altman-Z score of 1.26 is in line compared to the rest of the industry. APA outperforms 44.61% of its industry peers.
The Debt to FCF ratio of APA is 2.03, which is a good value as it means it would take APA, 2.03 years of fcf income to pay off all of its debts.
APA's Debt to FCF ratio of 2.03 is fine compared to the rest of the industry. APA outperforms 75.98% of its industry peers.
APA has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.25, APA is doing worse than 75.98% 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 | 1.25 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.75
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.24 indicates that APA should not have too much problems paying its short term obligations.
APA's Current ratio of 1.24 is in line compared to the rest of the industry. APA outperforms 49.51% of its industry peers.
A Quick Ratio of 1.07 indicates that APA should not have too much problems paying its short term obligations.
APA has a Quick ratio of 1.07. This is comparable to the rest of the industry: APA outperforms 50.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for APA have decreased strongly by -15.46% 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 20.76% on average per year.
The Revenue has been growing slightly by 7.08% in the past 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
The Earnings Per Share is expected to decrease by -14.62% on average over the next years. This is quite bad
APA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.57% yearly.
EPS Next Y-10.34%
EPS Next 2Y-11.73%
EPS Next 3Y-10.46%
EPS Next 5Y-14.62%
Revenue Next Year12.39%
Revenue Next 2Y3.39%
Revenue Next 3Y2.5%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.56, which indicates a rather cheap valuation of APA.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 84.80% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. APA is valued rather cheaply when compared to this.
APA is valuated cheaply with a Price/Forward Earnings ratio of 6.47.
APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 82.84% of the companies in the same industry.
APA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.56 | ||
| Fwd PE | 6.47 |
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 89.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 94.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.69 | ||
| EV/EBITDA | 2.82 |
4.3 Compensation for Growth
APA has an outstanding profitability rating, which may justify a higher PE ratio.
APA's earnings are expected to decrease with -10.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-11.73%
EPS Next 3Y-10.46%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 4.45%, which is a nice return.
Compared to an average industry Dividend Yield of 6.75, APA pays a bit more dividend than its industry peers.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
5.2 History
The dividend of APA decreases each year by -0.20%.
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)-0.2%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
APA pays out 15.11% of its income as dividend. This is a 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-11.73%
EPS Next 3Y-10.46%
22.79
-0.83 (-3.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.14%
Inst Owner Change5.56%
Ins Owners0.23%
Ins Owner Change2.25%
Market Cap8.43B
Analysts64.85
Price Target31.43 (37.91%)
Short Float %7.44%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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)-2.17%
PT rev (3m)-11.03%
EPS NQ rev (1m)4.79%
EPS NQ rev (3m)11.87%
EPS NY rev (1m)1.63%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.56 | ||
| Fwd PE | 6.47 | ||
| P/S | 0.92 | ||
| P/FCF | 2.69 | ||
| P/OCF | 2.33 | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 2.82 |
EPS(TTM)4.1
EY17.99%
EPS(NY)3.52
Fwd EY15.45%
FCF(TTM)8.47
FCFY37.18%
OCF(TTM)9.77
OCFY42.86%
SpS24.85
BVpS13.82
TBVpS13.82
PEG (NY)N/A
PEG (5Y)0.27
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 | 1.26 |
F-Score8
WACC8.16%
ROIC/WACC1.75
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-10.34%
EPS Next 2Y-11.73%
EPS Next 3Y-10.46%
EPS Next 5Y-14.62%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.06%
Revenue Next Year12.39%
Revenue Next 2Y3.39%
Revenue Next 3Y2.5%
Revenue Next 5Y1.57%
EBIT growth 1Y-4.41%
EBIT growth 3Y152.48%
EBIT growth 5Y9.67%
EBIT Next Year60.3%
EBIT Next 3Y13.4%
EBIT Next 5Y2.73%
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%