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NASDAQ:APA is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

By Mill Chart

Last update: May 7, 2024

Discover APA CORP (NASDAQ:APA), an undervalued stock highlighted by our stock screener. NASDAQ:APA showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

How We Gauge Valuation for NASDAQ:APA

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:APA has achieved a 8 out of 10:

  • With a Price/Earnings ratio of 7.28, the valuation of APA can be described as very cheap.
  • APA's Price/Earnings ratio is a bit cheaper when compared to the industry. APA is cheaper than 76.17% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.02, APA is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 5.71, the valuation of APA can be described as very cheap.
  • APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 86.92% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 20.58. APA is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, APA is valued cheaper than 86.45% of the companies 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 92.06% of the companies listed in the same industry.
  • The excellent profitability rating of APA may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:APA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:APA was assigned a score of 8 for profitability:

  • With an excellent Return On Assets value of 18.36%, APA belongs to the best of the industry, outperforming 85.05% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 105.29%, APA belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.
  • APA's Return On Invested Capital of 17.35% is amongst the best of the industry. APA outperforms 84.11% of its industry peers.
  • The 3 year average ROIC (23.87%) for APA is well above the current ROIC(17.35%). The reason for the recent decline needs to be investigated.
  • With a decent Profit Margin value of 33.39%, APA is doing good in the industry, outperforming 77.10% of the companies in the same industry.
  • APA's Profit Margin has improved in the last couple of years.
  • APA has a Operating Margin of 37.93%. This is in the better half of the industry: APA outperforms 70.56% of its industry peers.
  • In the last couple of years the Operating Margin of APA has grown nicely.
  • The Gross Margin of APA (73.95%) is better than 81.31% of its industry peers.

Health Insights: NASDAQ:APA

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:APA, the assigned 5 reflects its health status:

  • APA has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
  • The Debt to FCF ratio of APA (1.65) is better than 78.04% 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.

How We Gauge Growth for NASDAQ:APA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:APA scores a 4 out of 10:

  • The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
  • 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of APA

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.