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APA CORP (APA) Stock Fundamental Analysis

NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock - Currency: USD

21.67  +0.03 (+0.14%)

After market: 21.8 +0.13 (+0.6%)

Fundamental Rating

6

APA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. APA has an excellent profitability rating, but there are some minor concerns on its financial health. APA is valued quite cheap, but it does not seem to be growing. These ratings would make APA suitable for value investing!


Dividend Valuation Growth Profitability Health

8

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.
In multiple years APA reported negative net income over the last 5 years.
APA had a positive operating cash flow in each of the past 5 years.
APA Yearly Net Income VS EBIT VS OCF VS FCFAPA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B -10B

1.2 Ratios

APA has a better Return On Assets (11.47%) than 81.55% of its industry peers.
APA has a better Return On Equity (43.47%) than 92.72% of its industry peers.
The Return On Invested Capital of APA (14.25%) is better than 81.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APA is below the industry average of 28.72%.
The 3 year average ROIC (23.87%) for APA is well above the current ROIC(14.25%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 11.47%
ROE 43.47%
ROIC 14.25%
ROA(3y)18%
ROA(5y)-0.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.87%
ROIC(5y)15.47%
APA Yearly ROA, ROE, ROICAPA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200 400 600 800

1.3 Margins

APA has a better Profit Margin (24.18%) than 72.33% of its industry peers.
In the last couple of years the Profit Margin of APA has grown nicely.
With a decent Operating Margin value of 35.81%, APA is doing good in the industry, outperforming 73.30% of the companies in the same industry.
APA's Operating Margin has improved in the last couple of years.
APA has a better Gross Margin (73.62%) than 82.04% of its industry peers.
APA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 35.81%
PM (TTM) 24.18%
GM 73.62%
OM growth 3Y105.06%
OM growth 5Y8.11%
PM growth 3YN/A
PM growth 5Y131.46%
GM growth 3Y3.46%
GM growth 5Y-0.85%
APA Yearly Profit, Operating, Gross MarginsAPA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

5

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.
APA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, APA has less shares outstanding
APA has a better debt/assets ratio than last year.
APA Yearly Shares OutstandingAPA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
APA Yearly Total Debt VS Total AssetsAPA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

Based on the Altman-Z score of 1.23, we must say that APA is in the distress zone and has some risk of bankruptcy.
APA has a Altman-Z score of 1.23. This is comparable to the rest of the industry: APA outperforms 44.66% of its industry peers.
The Debt to FCF ratio of APA is 2.03, which is a good value as it means it would take APA, 2.03 years of fcf income to pay off all of its debts.
APA has a better Debt to FCF ratio (2.03) than 76.70% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that APA has dependencies on debt financing.
APA's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. APA is outperformed by 75.73% 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 RankSector Rank
Debt/Equity 1.25
Debt/FCF 2.03
Altman-Z 1.23
ROIC/WACC1.8
WACC7.9%
APA Yearly LT Debt VS Equity VS FCFAPA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 1.24 indicates that APA should not have too much problems paying its short term obligations.
APA has a Current ratio (1.24) which is in line with its industry peers.
A Quick Ratio of 1.07 indicates that APA should not have too much problems paying its short term obligations.
APA has a Quick ratio (1.07) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.07
APA Yearly Current Assets VS Current LiabilitesAPA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

3

3. Growth

3.1 Past

The earnings per share for APA have decreased strongly by -15.46% in the last year.
The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
APA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.08%.
Measured over the past years, APA shows a small growth in Revenue. The Revenue has been growing by 1.45% on average per year.
EPS 1Y (TTM)-15.46%
EPS 3YN/A
EPS 5Y20.76%
EPS Q2Q%-24.81%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.06%

3.2 Future

APA is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.62% yearly.
Based on estimates for the next years, APA will show a small growth in Revenue. The Revenue will grow by 1.57% on average per year.
EPS Next Y-10.75%
EPS Next 2Y-12.59%
EPS Next 3Y-11.37%
EPS Next 5Y-14.62%
Revenue Next Year13.25%
Revenue Next 2Y4.21%
Revenue Next 3Y2.55%
Revenue Next 5Y1.57%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
APA Yearly Revenue VS EstimatesAPA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B
APA Yearly EPS VS EstimatesAPA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.29, the valuation of APA can be described as very cheap.
Based on the Price/Earnings ratio, APA is valued cheaper than 86.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.12, APA is valued rather cheaply.
APA is valuated cheaply with a Price/Forward Earnings ratio of 6.27.
APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 84.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.77. APA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.29
Fwd PE 6.27
APA Price Earnings VS Forward Price EarningsAPA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

89.81% of the companies in the same industry are more expensive than APA, based on the Enterprise Value to EBITDA ratio.
APA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APA is cheaper than 95.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.56
EV/EBITDA 2.69
APA Per share dataAPA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

APA has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as APA's earnings are expected to decrease with -11.37% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-12.59%
EPS Next 3Y-11.37%

6

5. Dividend

5.1 Amount

APA has a Yearly Dividend Yield of 4.35%, which is a nice return.
Compared to an average industry Dividend Yield of 6.57, APA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, APA pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.35%

5.2 History

The dividend of APA decreases each year by -0.20%.
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)-0.2%
Div Incr Years2
Div Non Decr Years3
APA Yearly Dividends per shareAPA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

15.11% of the earnings are spent on dividend by APA. This is a low number and sustainable payout ratio.
The Dividend Rate of APA has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP15.11%
EPS Next 2Y-12.59%
EPS Next 3Y-11.37%
APA Yearly Income VS Free CF VS DividendAPA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -5B -10B
APA Dividend Payout.APA Dividend Payout, showing the Payout Ratio.APA Dividend Payout.PayoutRetained Earnings

APA CORP

NASDAQ:APA (2/7/2025, 8:11:48 PM)

After market: 21.8 +0.13 (+0.6%)

21.67

+0.03 (+0.14%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners84.14%
Inst Owner Change-0.04%
Ins Owners0.23%
Ins Owner Change1.3%
Market Cap8.02B
Analysts64.57
Price Target31.43 (45.04%)
Short Float %6.53%
Short Ratio3.62
Dividend
Industry RankSector Rank
Dividend Yield 4.35%
Yearly Dividend1
Dividend Growth(5Y)-0.2%
DP15.11%
Div Incr Years2
Div Non Decr Years3
Ex-Date01-22 2025-01-22 (0.25)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.75%
Min EPS beat(2)-2.21%
Max EPS beat(2)23.7%
EPS beat(4)1
Avg EPS beat(4)-2.99%
Min EPS beat(4)-17.94%
Max EPS beat(4)23.7%
EPS beat(8)5
Avg EPS beat(8)6.11%
EPS beat(12)7
Avg EPS beat(12)2.93%
EPS beat(16)11
Avg EPS beat(16)9.65%
Revenue beat(2)1
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-9.89%
Max Revenue beat(2)4.52%
Revenue beat(4)1
Avg Revenue beat(4)-10.07%
Min Revenue beat(4)-22.07%
Max Revenue beat(4)4.52%
Revenue beat(8)4
Avg Revenue beat(8)-2.33%
Revenue beat(12)8
Avg Revenue beat(12)4.01%
Revenue beat(16)12
Avg Revenue beat(16)8.14%
PT rev (1m)-2.17%
PT rev (3m)-11.03%
EPS NQ rev (1m)3.35%
EPS NQ rev (3m)-20.38%
EPS NY rev (1m)1.16%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-8.94%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)0.73%
Valuation
Industry RankSector Rank
PE 5.29
Fwd PE 6.27
P/S 0.87
P/FCF 2.56
P/OCF 2.22
P/B 1.57
P/tB 1.57
EV/EBITDA 2.69
EPS(TTM)4.1
EY18.92%
EPS(NY)3.45
Fwd EY15.94%
FCF(TTM)8.47
FCFY39.11%
OCF(TTM)9.77
OCFY45.08%
SpS24.85
BVpS13.82
TBVpS13.82
PEG (NY)N/A
PEG (5Y)0.25
Profitability
Industry RankSector Rank
ROA 11.47%
ROE 43.47%
ROCE 20.01%
ROIC 14.25%
ROICexc 14.3%
ROICexgc 14.3%
OM 35.81%
PM (TTM) 24.18%
GM 73.62%
FCFM 34.11%
ROA(3y)18%
ROA(5y)-0.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.87%
ROIC(5y)15.47%
ROICexc(3y)24.36%
ROICexc(5y)15.78%
ROICexgc(3y)24.36%
ROICexgc(5y)15.78%
ROCE(3y)33.52%
ROCE(5y)21.72%
ROICexcg growth 3Y141.62%
ROICexcg growth 5Y18.36%
ROICexc growth 3Y141.62%
ROICexc growth 5Y18.36%
OM growth 3Y105.06%
OM growth 5Y8.11%
PM growth 3YN/A
PM growth 5Y131.46%
GM growth 3Y3.46%
GM growth 5Y-0.85%
F-Score8
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 1.25
Debt/FCF 2.03
Debt/EBITDA 1.2
Cap/Depr 23.53%
Cap/Sales 5.21%
Interest Coverage 9.22
Cash Conversion 67.83%
Profit Quality 141.03%
Current Ratio 1.24
Quick Ratio 1.07
Altman-Z 1.23
F-Score8
WACC7.9%
ROIC/WACC1.8
Cap/Depr(3y)143.13%
Cap/Depr(5y)122.67%
Cap/Sales(3y)21.35%
Cap/Sales(5y)27.81%
Profit Quality(3y)113.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.46%
EPS 3YN/A
EPS 5Y20.76%
EPS Q2Q%-24.81%
EPS Next Y-10.75%
EPS Next 2Y-12.59%
EPS Next 3Y-11.37%
EPS Next 5Y-14.62%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.06%
Revenue Next Year13.25%
Revenue Next 2Y4.21%
Revenue Next 3Y2.55%
Revenue Next 5Y1.57%
EBIT growth 1Y-4.41%
EBIT growth 3Y152.48%
EBIT growth 5Y9.67%
EBIT Next Year59.33%
EBIT Next 3Y12.99%
EBIT Next 5Y2.73%
FCF growth 1Y23.47%
FCF growth 3Y107.83%
FCF growth 5YN/A
OCF growth 1Y-21.69%
OCF growth 3Y31.12%
OCF growth 5Y-3.69%