APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock - Currency: USD
Overall APA gets a fundamental rating of 6 out of 10. We evaluated APA against 210 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. APA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. APA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
APA had positive earnings in the past year.
APA had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.50%, APA is doing good in the industry, outperforming 62.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.75%, APA belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
APA has a Return On Invested Capital of 15.67%. This is amongst the best in the industry. APA outperforms 90.95% 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 23.80%.
The last Return On Invested Capital (15.67%) 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 | 5.5% | ||
| ROE | 18.75% | ||
| ROIC | 15.67% |
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 has a Profit Margin (9.78%) which is comparable to the rest of the industry.
APA's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 32.56%, APA is doing good in the industry, outperforming 73.81% of the companies in the same industry.
In the last couple of years the Operating Margin of APA has grown nicely.
APA has a Gross Margin of 70.09%. This is in the better half of the industry: APA outperforms 78.57% 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 | 32.56% | ||
| PM (TTM) | 9.78% | ||
| GM | 70.09% |
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
APA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, APA has more shares outstanding
Compared to 5 years ago, APA has less shares outstanding
Compared to 1 year ago, APA has an improved debt to assets ratio.
2.2 Solvency
APA has an Altman-Z score of 1.32. This is a bad value and indicates that APA is not financially healthy and even has some risk of bankruptcy.
APA has a Altman-Z score (1.32) which is in line with its industry peers.
The Debt to FCF ratio of APA is 1.33, which is an excellent value as it means it would take APA, only 1.33 years of fcf income to pay off all of its debts.
APA has a better Debt to FCF ratio (1.33) than 87.14% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that APA is somewhat dependend on debt financing.
APA has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: APA underperforms 67.62% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.76
WACC8.88%
2.3 Liquidity
A Current Ratio of 0.89 indicates that APA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, APA is doing worse than 63.33% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that APA may have some problems paying its short term obligations.
APA has a worse Quick ratio (0.74) than 66.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for APA have decreased by -2.19% in the last year.
The Earnings Per Share has been growing by 245758.95% on average over the past years. This is a very strong growth
APA shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.76%.
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)-2.19%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%35.9%
Revenue 1Y (TTM)26.76%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
3.2 Future
Based on estimates for the next years, APA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.27% on average per year.
The Revenue is expected to grow by 0.39% on average over the next years.
EPS Next Y-18.96%
EPS Next 2Y-11.66%
EPS Next 3Y-2.14%
EPS Next 5Y12.27%
Revenue Next Year-10.73%
Revenue Next 2Y-7.29%
Revenue Next 3Y-2.31%
Revenue Next 5Y0.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 4.66 indicates a rather cheap valuation of APA.
Based on the Price/Earnings ratio, APA is valued cheaper than 90.95% of the companies in the same industry.
APA is valuated cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.42 indicates a rather cheap valuation of APA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APA indicates a rather cheap valuation: APA is cheaper than 85.71% of the companies listed in the same industry.
APA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.66 | ||
| Fwd PE | 6.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APA is valued cheaper than 94.76% of the companies in the same industry.
APA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APA is cheaper than 98.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.68 | ||
| EV/EBITDA | 2.05 |
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 -2.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-11.66%
EPS Next 3Y-2.14%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 5.31%, which is a nice return.
APA's Dividend Yield is a higher than the industry average which is at 6.49.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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
36.11% 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.
DP36.11%
EPS Next 2Y-11.66%
EPS Next 3Y-2.14%
18.74
+0.14 (+0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner Change0.02%
Ins Owners0.19%
Ins Owner Change3.54%
Market Cap6.76B
Analysts63.64
Price Target23.29 (24.28%)
Short Float %11.02%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend1.06
Dividend Growth(5Y)1.06%
DP36.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.5%
Min EPS beat(2)-19.51%
Max EPS beat(2)26.52%
EPS beat(4)2
Avg EPS beat(4)7.13%
Min EPS beat(4)-19.51%
Max EPS beat(4)26.52%
EPS beat(8)4
Avg EPS beat(8)3.46%
EPS beat(12)8
Avg EPS beat(12)5.5%
EPS beat(16)10
Avg EPS beat(16)4.38%
Revenue beat(2)0
Avg Revenue beat(2)-10.28%
Min Revenue beat(2)-12.36%
Max Revenue beat(2)-8.19%
Revenue beat(4)1
Avg Revenue beat(4)-6.48%
Min Revenue beat(4)-12.36%
Max Revenue beat(4)4.52%
Revenue beat(8)3
Avg Revenue beat(8)-6.63%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)10
Avg Revenue beat(16)4.3%
PT rev (1m)1.89%
PT rev (3m)-18.16%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-27.76%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-5.34%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)-10.97%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-7.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.66 | ||
| Fwd PE | 6.42 | ||
| P/S | 0.65 | ||
| P/FCF | 1.68 | ||
| P/OCF | 1.56 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 2.05 |
EPS(TTM)4.02
EY21.45%
EPS(NY)2.92
Fwd EY15.57%
FCF(TTM)11.16
FCFY59.57%
OCF(TTM)12.05
OCFY64.3%
SpS28.88
BVpS15.06
TBVpS15.06
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 18.75% | ||
| ROCE | 21.52% | ||
| ROIC | 15.67% | ||
| ROICexc | 15.74% | ||
| ROICexgc | 15.74% | ||
| OM | 32.56% | ||
| PM (TTM) | 9.78% | ||
| GM | 70.09% | ||
| FCFM | 38.65% |
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%
ROICexcg growth 3Y-6.49%
ROICexcg 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 12.91% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 74.05% | ||
| Profit Quality | 395.29% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.32 |
F-Score6
WACC8.88%
ROIC/WACC1.76
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)-2.19%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%35.9%
EPS Next Y-18.96%
EPS Next 2Y-11.66%
EPS Next 3Y-2.14%
EPS Next 5Y12.27%
Revenue 1Y (TTM)26.76%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
Revenue Next Year-10.73%
Revenue Next 2Y-7.29%
Revenue Next 3Y-2.31%
Revenue Next 5Y0.39%
EBIT growth 1Y8.78%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year47.97%
EBIT Next 3Y13.67%
EBIT Next 5Y5.31%
FCF growth 1Y121.44%
FCF growth 3Y-33.24%
FCF growth 5YN/A
OCF growth 1Y-0.89%
OCF growth 3Y1.17%
OCF growth 5Y4.77%