APA CORP (APA) Stock Fundamental Analysis
USA - NASDAQ:APA - US03743Q1085 - Common Stock
23.34 USD
-0.49 (-2.06%)
23.11 USD
-0.23 (-0.99%)
APA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. APA scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on APA. 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.
Of the past 5 years APA 4 years were profitable.
In the past 5 years APA always reported a positive cash flow from operatings.
1.2 Ratios
APA's Return On Assets of 5.98% is fine compared to the rest of the industry. APA outperforms 68.42% of its industry peers.
APA has a better Return On Equity (18.31%) than 80.38% of its industry peers.
The Return On Invested Capital of APA (15.16%) is better than 92.34% 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 21.72%.
The 3 year average ROIC (23.28%) for APA is well above the current ROIC(15.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.31% | ||
| ROIC | 15.16% |
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
Looking at the Profit Margin, with a value of 10.75%, APA is in line with its industry, outperforming 57.89% of the companies in the same industry.
In the last couple of years the Profit Margin of APA has declined.
APA has a better Operating Margin (31.52%) than 76.56% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
APA has a Gross Margin of 69.00%. This is in the better half of the industry: APA outperforms 77.99% 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 | 31.52% | ||
| PM (TTM) | 10.75% | ||
| GM | 69% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APA is creating value.
APA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for APA has been reduced compared to 5 years ago.
Compared to 1 year ago, APA has an improved debt to assets ratio.
2.2 Solvency
APA has an Altman-Z score of 1.42. This is a bad value and indicates that APA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of APA (1.42) is comparable to the rest of the industry.
The Debt to FCF ratio of APA is 1.03, which is an excellent value as it means it would take APA, only 1.03 years of fcf income to pay off all of its debts.
APA has a Debt to FCF ratio of 1.03. This is amongst the best in the industry. APA outperforms 88.04% of its industry peers.
APA has a Debt/Equity ratio of 0.73. This is a neutral value indicating APA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, APA is doing worse than 62.20% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.87
WACC8.12%
2.3 Liquidity
A Current Ratio of 0.80 indicates that APA may have some problems paying its short term obligations.
With a Current ratio value of 0.80, APA is not doing good in the industry: 65.55% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that APA may have some problems paying its short term obligations.
APA has a Quick ratio of 0.67. This is in the lower half of the industry: APA underperforms 71.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
APA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.03%.
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 12.13% in the past year. This is quite good.
Measured over the past years, APA shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
EPS 1Y (TTM)-16.03%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%-25.64%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%6.61%
3.2 Future
APA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.74% yearly.
Based on estimates for the next years, APA will show a small growth in Revenue. The Revenue will grow by 0.39% on average per year.
EPS Next Y-6.12%
EPS Next 2Y-8.05%
EPS Next 3Y-2.68%
EPS Next 5Y13.74%
Revenue Next Year3.97%
Revenue Next 2Y-4.29%
Revenue Next 3Y-1.28%
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
Based on the Price/Earnings ratio of 6.27, the valuation of APA can be described as very cheap.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. APA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.38, which indicates a rather cheap valuation of APA.
Based on the Price/Forward Earnings ratio, APA is valued cheaper than 87.08% of the companies in the same industry.
APA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APA is valued cheaper than 94.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APA is valued cheaply inside the industry as 98.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.89 | ||
| EV/EBITDA | 2.29 |
4.3 Compensation for Growth
APA has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as APA's earnings are expected to decrease with -2.68% in the coming years.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-8.05%
EPS Next 3Y-2.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, APA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.15, APA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, APA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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
APA pays out 33.86% of its income as dividend. This is a sustainable payout ratio.
APA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.86%
EPS Next 2Y-8.05%
EPS Next 3Y-2.68%
23.34
-0.49 (-2.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change0.3%
Ins Owners0.19%
Ins Owner Change0.1%
Market Cap8.35B
Revenue(TTM)10.06B
Net Income(TTM)1.08B
Analysts57.3
Price Target24.58 (5.31%)
Short Float %10.49%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend1.06
Dividend Growth(5Y)1.06%
DP33.86%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.03%
Min EPS beat(2)26.52%
Max EPS beat(2)79.53%
EPS beat(4)2
Avg EPS beat(4)21.08%
Min EPS beat(4)-19.51%
Max EPS beat(4)79.53%
EPS beat(8)4
Avg EPS beat(8)11.9%
EPS beat(12)8
Avg EPS beat(12)12.08%
EPS beat(16)10
Avg EPS beat(16)7.94%
Revenue beat(2)1
Avg Revenue beat(2)9.83%
Min Revenue beat(2)-6.04%
Max Revenue beat(2)25.7%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-12.36%
Max Revenue beat(4)25.7%
Revenue beat(8)3
Avg Revenue beat(8)-3.78%
Revenue beat(12)6
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)4.86%
PT rev (1m)0.31%
PT rev (3m)5.54%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)15.09%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)15.84%
Revenue NQ rev (1m)-2.27%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)16.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 7.38 | ||
| P/S | 0.83 | ||
| P/FCF | 1.89 | ||
| P/OCF | 1.8 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 2.29 |
EPS(TTM)3.72
EY15.94%
EPS(NY)3.16
Fwd EY13.55%
FCF(TTM)12.36
FCFY52.94%
OCF(TTM)13
OCFY55.71%
SpS28.11
BVpS16.5
TBVpS16.5
PEG (NY)N/A
PEG (5Y)0
Graham Number37.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.31% | ||
| ROCE | 20.81% | ||
| ROIC | 15.16% | ||
| ROICexc | 15.26% | ||
| ROICexgc | 15.26% | ||
| OM | 31.52% | ||
| PM (TTM) | 10.75% | ||
| GM | 69% | ||
| FCFM | 43.96% |
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%
ROICexgc growth 3Y-6.49%
ROICexgc 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 | 0.73 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 9.54% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 9.08 | ||
| Cash Conversion | 83.21% | ||
| Profit Quality | 408.97% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.42 |
F-Score6
WACC8.12%
ROIC/WACC1.87
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)-16.03%
EPS 3Y-1.22%
EPS 5Y245758.95%
EPS Q2Q%-25.64%
EPS Next Y-6.12%
EPS Next 2Y-8.05%
EPS Next 3Y-2.68%
EPS Next 5Y13.74%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%6.61%
Revenue Next Year3.97%
Revenue Next 2Y-4.29%
Revenue Next 3Y-1.28%
Revenue Next 5Y0.39%
EBIT growth 1Y-5.15%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year49.02%
EBIT Next 3Y12.77%
EBIT Next 5Y8%
FCF growth 1Y304.85%
FCF growth 3Y-33.24%
FCF growth 5YN/A
OCF growth 1Y20.77%
OCF growth 3Y1.17%
OCF growth 5Y4.77%
APA CORP / APA FAQ
Can you provide the ChartMill fundamental rating for APA CORP?
ChartMill assigns a fundamental rating of 6 / 10 to APA.
What is the valuation status of APA CORP (APA) stock?
ChartMill assigns a valuation rating of 8 / 10 to APA CORP (APA). This can be considered as Undervalued.
Can you provide the profitability details for APA CORP?
APA CORP (APA) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for APA stock?
The Earnings per Share (EPS) of APA CORP (APA) is expected to decline by -6.12% in the next year.
Is the dividend of APA CORP sustainable?
The dividend rating of APA CORP (APA) is 8 / 10 and the dividend payout ratio is 33.86%.