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

Last update: May 28, 2024

APA CORP (NASDAQ:APA) was identified as a decent value stock by our stock screener. NASDAQ:APA scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Exploring NASDAQ:APA's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:APA boasts a 8 out of 10:

A Price/Earnings ratio of 7.14 indicates a rather cheap valuation of APA.
Based on the Price/Earnings ratio, APA is valued a bit cheaper than 77.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.27. APA is valued rather cheaply when compared to this.
APA is valuated cheaply with a Price/Forward Earnings ratio of 5.95.
Based on the Price/Forward Earnings ratio, APA is valued cheaper than 88.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.18. APA is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, APA is valued cheaply inside the industry as 87.74% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, APA is valued cheaper than 93.40% of the companies in the same industry.
The excellent profitability rating of APA may justify a higher PE ratio.

Understanding NASDAQ:APA's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:APA has earned a 8 out of 10:

APA has a Return On Assets of 18.36%. This is amongst the best in the industry. APA outperforms 86.32% of its industry peers.
The Return On Equity of APA (105.29%) is better than 95.28% of its industry peers.
With an excellent Return On Invested Capital value of 17.35%, APA belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
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.
APA has a Profit Margin of 33.39%. This is amongst the best in the industry. APA outperforms 80.66% of its industry peers.
APA's Profit Margin has improved in the last couple of years.
APA's Operating Margin of 37.93% is fine compared to the rest of the industry. APA outperforms 72.17% of its industry peers.
APA's Operating Margin has improved in the last couple of years.
The Gross Margin of APA (73.95%) is better than 82.08% of its industry peers.

Health Assessment of NASDAQ:APA

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:APA scores a 5 out of 10:

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 79.25% of its industry peers.
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.

Deciphering NASDAQ:APA's Growth Rating

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.

Check the latest full fundamental report of APA for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.