APA CORP (APA)
US03743Q1085 - Common Stock
Taking everything into account, APA scores 6 out of 10 in our fundamental rating. APA was compared to 204 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
In the past year APA had a positive cash flow from operations.
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
With a decent Return On Assets value of 11.47%, APA is doing good in the industry, outperforming 79.80% of the companies in the same industry.
Looking at the Return On Equity, with a value of 43.47%, APA belongs to the top of the industry, outperforming 92.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.25%, APA belongs to the best of the industry, outperforming 81.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for APA is in line with the industry average of 22.78%.
The last Return On Invested Capital (14.25%) for APA is well below the 3 year average (23.87%), which needs to be investigated, but indicates that APA had better years and this may not be a problem.
| 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 better Profit Margin (24.18%) than 71.43% of its industry peers.
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 72.41% of its industry peers.
APA's Operating Margin has improved in the last couple of years.
APA has a Gross Margin of 73.62%. This is amongst the best in the industry. APA outperforms 82.76% 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.
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
APA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.25, 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 1.25, APA is in line with its industry, outperforming 43.84% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.03, APA is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
APA has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APA (1.25) is worse than 75.86% 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 | 1.25 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.85
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.24 indicates that APA should not have too much problems paying its short term obligations.
The Current ratio of APA (1.24) 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.
The Quick ratio of APA (1.07) is comparable to the rest of the 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.
APA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.08%.
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
Based on estimates for the next years, APA will show a small growth in Earnings Per Share. The EPS will grow by 2.81% on average per year.
Based on estimates for the next years, APA will show a small growth in Revenue. The Revenue will grow by 5.12% on average per year.
EPS Next Y-13.61%
EPS Next 2Y-16.55%
EPS Next 3Y-9.06%
EPS Next 5Y2.81%
Revenue Next Year11.78%
Revenue Next 2Y4.87%
Revenue Next 3Y4.17%
Revenue Next 5Y5.12%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.48 indicates a rather cheap valuation of APA.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.65. APA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.14, which indicates a rather cheap valuation of APA.
79.31% 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 (23.50), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
91.13% of the companies in the same industry are more expensive than APA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 94.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.65 | ||
| EV/EBITDA | 2.74 |
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 -9.06% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-16.55%
EPS Next 3Y-9.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.42%, APA is a good candidate for dividend investing.
The stock price of APA dropped by -21.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
APA's Dividend Yield is a higher than the industry average which is at 6.46.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.2%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
15.11% of the earnings are spent on dividend by APA. This is a low number and sustainable payout ratio.
DP15.11%
EPS Next 2Y-16.55%
EPS Next 3Y-9.06%
APA CORP
NASDAQ:APA (11/18/2024, 8:08:54 PM)
After market: 22.45 -0.01 (-0.04%)22.46
+0.08 (+0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 7.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.47% | ||
| ROE | 43.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.81% | ||
| PM (TTM) | 24.18% | ||
| GM | 73.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.46%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-13.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y