APA CORP (APA)
US03743Q1085 - Common Stock
APA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While APA belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on APA.
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.
The reported net income has been mixed in the past 5 years: APA reported negative net income in multiple 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 18.73%. This is amongst the best in the industry. APA outperforms 83.57% of its industry peers.
APA has a Return On Equity of 107.53%. This is amongst the best in the industry. APA outperforms 94.37% of its industry peers.
With an excellent Return On Invested Capital value of 18.74%, APA belongs to the best of the industry, outperforming 83.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for APA is significantly below the industry average of 45.80%.
The 3 year average ROIC (23.87%) for APA is well above the current ROIC(18.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.73% | ||
| ROE | 107.53% | ||
| ROIC | 18.74% |
ROA(3y)18%
ROA(5y)-0.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.87%
ROIC(5y)15.47%
1.3 Margins
APA has a better Profit Margin (34.48%) than 76.53% of its industry peers.
APA's Profit Margin has improved in the last couple of years.
APA's Operating Margin of 40.83% is fine compared to the rest of the industry. APA outperforms 75.59% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
APA's Gross Margin of 73.69% is amongst the best of the industry. APA outperforms 80.28% 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 | 40.83% | ||
| PM (TTM) | 34.48% | ||
| GM | 73.69% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APA is creating value.
Compared to 1 year ago, APA has less shares outstanding
APA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for APA has been reduced compared to a year ago.
2.2 Solvency
APA has an Altman-Z score of 1.57. 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 (1.57) which is in line with its industry peers.
The Debt to FCF ratio of APA is 6.72, which is on the high side as it means it would take APA, 6.72 years of fcf income to pay off all of its debts.
APA has a Debt to FCF ratio of 6.72. This is comparable to the rest of the industry: APA outperforms 49.30% of its industry peers.
APA has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.95, APA is doing worse than 84.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 1.57 |
ROIC/WACC2.42
WACC7.75%
2.3 Liquidity
APA has a Current Ratio of 1.02. This is a normal value and indicates that APA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.02, APA is in line with its industry, outperforming 40.38% of the companies in the same industry.
APA has a Quick Ratio of 1.02. This is a bad value and indicates that APA is not financially healthy enough and could expect problems in meeting its short term obligations.
APA's Quick ratio of 0.84 is on the low side compared to the rest of the industry. APA is outperformed by 61.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
APA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.60%.
APA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.76% yearly.
Looking at the last year, APA shows a very negative growth in Revenue. The Revenue has decreased by -25.25% in the last year.
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)-41.6%
EPS 3YN/A
EPS 5Y20.76%
EPS growth Q2Q-22.3%
Revenue 1Y (TTM)-25.25%
Revenue growth 3Y23.13%
Revenue growth 5Y1.45%
Revenue growth Q2Q-12.34%
3.2 Future
APA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.11% yearly.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y-4.02%
EPS Next 2Y7.67%
EPS Next 3Y0.61%
EPS Next 5Y0.11%
Revenue Next Year11.64%
Revenue Next 2Y10.99%
Revenue Next 3Y7.97%
Revenue Next 5Y5.1%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.02, the valuation of APA can be described as very cheap.
74.65% of the companies in the same industry are more expensive than APA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (25.25), we can say APA is valued rather cheaply.
APA is valuated cheaply with a Price/Forward Earnings ratio of 7.31.
APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 80.28% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (21.67), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
84.04% of the companies in the same industry are more expensive than APA, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as APA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.24 | ||
| EV/EBITDA | 3.45 |
4.3 Compensation for Growth
The excellent profitability rating of APA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y7.67%
EPS Next 3Y0.61%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 3.08%.
APA's Dividend Yield is comparable with the industry average which is at 5.79.
Compared to an average S&P500 Dividend Yield of 2.45, APA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.2%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
APA pays out 10.79% of its income as dividend. This is a sustainable payout ratio.
DP10.79%
EPS Next 2Y7.67%
EPS Next 3Y0.61%
APA CORP
NASDAQ:APA (4/25/2024, 9:26:10 AM)
31.73
-0.32 (-1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 7.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.73% | ||
| ROE | 107.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.83% | ||
| PM (TTM) | 34.48% | ||
| GM | 73.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-41.6%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-25.25%
Revenue growth 3Y23.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y