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 211 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 may be a bit undervalued, certainly considering the very reasonable score on growth APA also has an excellent dividend rating.
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.
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
APA has a Return On Assets of 5.50%. This is in the better half of the industry: APA outperforms 62.56% of its industry peers.
The Return On Equity of APA (18.75%) is better than 81.04% of its industry peers.
APA's Return On Invested Capital of 15.67% is amongst the best of the industry. APA outperforms 91.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APA is in line with the industry average of 23.70%.
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.
APA's Operating Margin of 32.56% is fine compared to the rest of the industry. APA outperforms 73.46% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
APA's Gross Margin of 70.09% is fine compared to the rest of the industry. APA outperforms 78.67% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 1.31, we must say that APA is in the distress zone and has some risk of bankruptcy.
APA's Altman-Z score of 1.31 is in line compared to the rest of the industry. APA outperforms 50.24% of 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 87.68% of its industry peers.
APA has a Debt/Equity ratio of 0.96. This is a neutral value indicating APA is somewhat dependend on debt financing.
The Debt to Equity ratio of APA (0.96) is worse than 68.25% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.89
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.89 indicates that APA may have some problems paying its short term obligations.
APA's Current ratio of 0.89 is on the low side compared to the rest of the industry. APA is outperformed by 63.51% of its industry peers.
A Quick Ratio of 0.74 indicates that APA may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, APA is not doing good in the industry: 66.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
APA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.19%.
The Earnings Per Share has been growing by 245758.95% on average over the past years. This is a very strong growth
The Revenue has grown by 26.76% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 12.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.39% on average over the next years.
EPS Next Y-19.3%
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
EPS Next 5Y12.27%
Revenue Next Year-11.02%
Revenue Next 2Y-7.31%
Revenue Next 3Y-2.37%
Revenue Next 5Y0.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.77 indicates a rather cheap valuation of APA.
APA's Price/Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 90.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. APA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.64 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 85.78% of the companies listed in the same industry.
APA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
APA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. APA is cheaper than 94.79% 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 | 1.72 | ||
| EV/EBITDA | 2.03 |
4.3 Compensation for Growth
APA has a very decent profitability rating, which may justify a higher PE ratio.
APA's earnings are expected to decrease with -2.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 5.42%, which is a nice return.
APA's Dividend Yield is a higher than the industry average which is at 6.66.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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.
APA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.11%
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
NASDAQ:APA (7/1/2025, 12:24:08 PM)
19.195
+0.91 (+4.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner Change-0.17%
Ins Owners0.19%
Ins Owner Change5.33%
Market Cap6.93B
Analysts63.64
Price Target22.74 (18.47%)
Short Float %10.93%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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)-0.94%
PT rev (3m)-22.03%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-32.14%
EPS NY rev (1m)1.21%
EPS NY rev (3m)-16.16%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-12.46%
Revenue NY rev (1m)-3.74%
Revenue NY rev (3m)-10.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 6.64 | ||
| P/S | 0.66 | ||
| P/FCF | 1.72 | ||
| P/OCF | 1.59 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 2.03 |
EPS(TTM)4.02
EY20.94%
EPS(NY)2.89
Fwd EY15.06%
FCF(TTM)11.16
FCFY58.15%
OCF(TTM)12.05
OCFY62.77%
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 | 1.31 |
F-Score6
WACC8.29%
ROIC/WACC1.89
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-19.3%
EPS Next 2Y-12.09%
EPS Next 3Y-2.39%
EPS Next 5Y12.27%
Revenue 1Y (TTM)26.76%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
Revenue Next Year-11.02%
Revenue Next 2Y-7.31%
Revenue Next 3Y-2.37%
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%