25.8 USD
+0.25 (+0.98%)
25.8 USD
0 (0%)
Overall APA gets a fundamental rating of 6 out of 10. We evaluated APA against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While APA has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on APA. APA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- APA had positive earnings in the past year.
- In the past year APA had a positive cash flow from operations.
- Of the past 5 years APA 4 years were profitable.
- APA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.53%, APA belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
- APA has a Return On Equity of 25.30%. This is amongst the best in the industry. APA outperforms 90.82% of its industry peers.
- APA's Return On Invested Capital of 14.25% is amongst the best of the industry. APA outperforms 92.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for APA 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
- APA's Profit Margin of 15.65% is fine compared to the rest of the industry. APA outperforms 67.63% of its industry peers.
- In the last couple of years the Profit Margin of APA has declined.
- APA has a better Operating Margin (30.75%) than 76.33% of its industry peers.
- In the last couple of years the Operating Margin of APA has grown nicely.
- The Gross Margin of APA (69.21%) is better than 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 1.44. 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 1.44, APA perfoms like the industry average, outperforming 53.14% 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.
- With an excellent Debt to FCF ratio value of 0.94, APA belongs to the best 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.
- Looking at the Debt to Equity ratio, with a value of 0.72, APA is doing worse than 62.80% of the companies in the same industry.
- 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 | 0.72 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.44 |
ROIC/WACC1.74
WACC8.19%
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.
- APA has a Quick 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.
- 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
- The earnings per share for APA have decreased strongly by -10.98% in the last year.
- 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.
- Measured over the past years, APA shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
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
- The Earnings Per Share is expected to grow by 7.84% on average over the next years.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.07, the valuation of APA can be described as very cheap.
- APA's Price/Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 88.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. APA is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.05 indicates a reasonable valuation of APA.
- 84.54% of the companies in the same industry are more expensive than APA, based on the Price/Forward Earnings ratio.
- APA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, APA is valued cheaper than 95.65% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 99.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.92 | ||
| EV/EBITDA | 2.44 |
4.3 Compensation for Growth
- The decent 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 -4.87% in the coming years.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-12.69%
EPS Next 3Y-4.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.84%, APA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.75, 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 1.82.
| 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
- APA pays out 24.12% of its income as dividend. This is a 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 7.07 and the Price/Book (PB) ratio is 1.53.
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.