APA CORP (APA) Stock Fundamental Analysis
USA - NASDAQ:APA - US03743Q1085 - Common Stock
24.92 USD
+0.54 (+2.21%)
24.5 USD
-0.42 (-1.69%)
We assign a fundamental rating of 6 out of 10 to APA. 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. 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
In the past year APA was profitable.
APA had a positive operating cash flow in the past year.
APA had positive earnings in 4 of the past 5 years.
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 82.86% of the companies in the same industry.
With an excellent Return On Equity value of 25.30%, APA belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
APA's Return On Invested Capital of 14.25% is amongst the best of the industry. APA outperforms 91.43% of its industry peers.
APA had an Average Return On Invested Capital over the past 3 years of 23.28%. This is in line with the industry average of 21.71%.
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
With a decent Profit Margin value of 15.65%, APA is doing good in the industry, outperforming 65.24% of the companies in the same industry.
In the last couple of years the Profit Margin of APA has declined.
APA's Operating Margin of 30.75% is fine compared to the rest of the industry. APA outperforms 74.29% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
APA has a better Gross Margin (69.21%) than 78.10% 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.
Compared to 1 year ago, APA has more shares outstanding
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 1.44, we must say that APA is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.44, APA perfoms like the industry average, outperforming 54.76% 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.
The Debt to FCF ratio of APA (0.94) is better than 89.52% of its industry peers.
APA has a Debt/Equity ratio of 0.72. This is a neutral value indicating 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 62.86% 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/WACC1.72
WACC8.3%
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.
APA's Current ratio of 0.78 is on the low side compared to the rest of the industry. APA is outperformed by 69.05% of its industry peers.
A Quick Ratio of 0.63 indicates that APA may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, APA is not doing good in the industry: 70.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
APA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.98%.
APA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 245758.95% yearly.
APA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.88%.
APA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.
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
APA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.43% yearly.
Based on estimates for the next years, APA will show a small growth in Revenue. The Revenue will grow by 0.39% on average per year.
EPS Next Y-5.19%
EPS Next 2Y-8.93%
EPS Next 3Y-5.25%
EPS Next 5Y4.43%
Revenue Next Year3.85%
Revenue Next 2Y-4.8%
Revenue Next 3Y-2.27%
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
The Price/Earnings ratio is 6.83, which indicates a rather cheap valuation of APA.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.51. APA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.03, which indicates a very decent valuation of APA.
Based on the Price/Forward Earnings ratio, APA is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (34.98), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 8.03 |
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 93.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 98.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.88 | ||
| EV/EBITDA | 2.41 |
4.3 Compensation for Growth
The decent profitability rating of APA may justify a higher PE ratio.
APA's earnings are expected to decrease with -5.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-8.93%
EPS Next 3Y-5.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, APA is a good candidate for dividend investing.
APA's Dividend Yield is a higher than the industry average which is at 5.89.
Compared to an average S&P500 Dividend Yield of 2.44, APA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
The dividend of APA has a limited annual growth rate of 1.06%.
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)1.06%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
24.12% of the earnings are spent on dividend by APA. This is a low number and 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-8.93%
EPS Next 3Y-5.25%
24.92
+0.54 (+2.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change0.83%
Ins Owners0.19%
Ins Owner Change0.23%
Market Cap8.92B
Revenue(TTM)9.64B
Net Income(TTM)1.51B
Analysts57.3
Price Target25.22 (1.2%)
Short Float %10.23%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend1.06
Dividend Growth(5Y)1.06%
DP24.12%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.1%
Min EPS beat(2)16.68%
Max EPS beat(2)79.53%
EPS beat(4)3
Avg EPS beat(4)25.8%
Min EPS beat(4)-19.51%
Max EPS beat(4)79.53%
EPS beat(8)4
Avg EPS beat(8)11.4%
EPS beat(12)8
Avg EPS beat(12)12.67%
EPS beat(16)10
Avg EPS beat(16)8.65%
Revenue beat(2)2
Avg Revenue beat(2)13.62%
Min Revenue beat(2)1.54%
Max Revenue beat(2)25.7%
Revenue beat(4)2
Avg Revenue beat(4)2.21%
Min Revenue beat(4)-12.36%
Max Revenue beat(4)25.7%
Revenue beat(8)3
Avg Revenue beat(8)-3.93%
Revenue beat(12)6
Avg Revenue beat(12)-0.81%
Revenue beat(16)10
Avg Revenue beat(16)3.56%
PT rev (1m)2.58%
PT rev (3m)7.72%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)0.48%
EPS NY rev (3m)16.99%
Revenue NQ rev (1m)-2.73%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 8.03 | ||
| P/S | 0.92 | ||
| P/FCF | 1.88 | ||
| P/OCF | 1.87 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 2.41 |
EPS(TTM)3.65
EY14.65%
EPS(NY)3.1
Fwd EY12.45%
FCF(TTM)13.29
FCFY53.32%
OCF(TTM)13.34
OCFY53.53%
SpS26.95
BVpS16.67
TBVpS16.67
PEG (NY)N/A
PEG (5Y)0
Graham Number37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 25.3% | ||
| ROCE | 19.57% | ||
| ROIC | 14.25% | ||
| ROICexc | 14.71% | ||
| ROICexgc | 14.71% | ||
| OM | 30.75% | ||
| PM (TTM) | 15.65% | ||
| GM | 69.21% | ||
| FCFM | 49.31% |
ROA(3y)16.94%
ROA(5y)4%
ROE(3y)330.44%
ROE(5y)N/A
ROIC(3y)23.28%
ROIC(5y)17.78%
ROICexc(3y)23.81%
ROICexc(5y)18.21%
ROICexgc(3y)23.81%
ROICexgc(5y)18.21%
ROCE(3y)31.97%
ROCE(5y)24.42%
ROICexgc growth 3Y-6.49%
ROICexgc growth 5Y26.52%
ROICexc growth 3Y-6.49%
ROICexc growth 5Y26.52%
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%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 0.79% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 9.29 | ||
| Cash Conversion | 89.12% | ||
| Profit Quality | 315.04% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.44 |
F-Score6
WACC8.3%
ROIC/WACC1.72
Cap/Depr(3y)158.67%
Cap/Depr(5y)126.26%
Cap/Sales(3y)26.67%
Cap/Sales(5y)24.66%
Profit Quality(3y)61.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.98%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%-7%
EPS Next Y-5.19%
EPS Next 2Y-8.93%
EPS Next 3Y-5.25%
EPS Next 5Y4.43%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%2.77%
Revenue Next Year3.85%
Revenue Next 2Y-4.8%
Revenue Next 3Y-2.27%
Revenue Next 5Y0.39%
EBIT growth 1Y-9.93%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year49.02%
EBIT Next 3Y12.77%
EBIT Next 5Y9.09%
FCF growth 1Y334.95%
FCF growth 3Y-33.24%
FCF growth 5YN/A
OCF growth 1Y35.91%
OCF growth 3Y1.17%
OCF growth 5Y4.77%
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 of APA CORP (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.
Can you provide the expected EPS growth for APA stock?
The Earnings per Share (EPS) of APA CORP (APA) is expected to decline by -5.19% in the next year.
Is the dividend of APA CORP sustainable?
The dividend rating of APA CORP (APA) is 8 / 10 and the dividend payout ratio is 24.12%.