APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock - Currency: USD
Taking everything into account, APA scores 6 out of 10 in our fundamental rating. APA was compared to 208 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. 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
In the past year APA was profitable.
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
The Return On Assets of APA (5.50%) is better than 63.94% of its industry peers.
APA's Return On Equity of 18.75% is amongst the best of the industry. APA outperforms 80.29% of its industry peers.
APA has a better Return On Invested Capital (15.67%) than 91.35% 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 23.52%.
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.
In the last couple of years the Profit Margin of APA has declined.
APA has a Operating Margin of 32.56%. This is in the better half of the industry: APA outperforms 75.96% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
APA has a better Gross Margin (70.09%) than 79.33% 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
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.
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 1.34. This is a bad value and indicates that APA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.34, APA is in line with its industry, outperforming 50.96% of the companies in the same industry.
APA has a debt to FCF ratio of 1.33. This is a very positive value and a sign of high solvency as it would only need 1.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.33, APA belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that APA is somewhat dependend on debt financing.
The Debt to Equity ratio of APA (0.96) is worse than 67.79% 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 | 1.34 |
ROIC/WACC1.8
WACC8.72%
2.3 Liquidity
APA has a Current Ratio of 0.89. This is a bad value and indicates that APA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.89, APA is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that APA may have some problems paying its short term obligations.
APA's Quick ratio of 0.74 is on the low side compared to the rest of the industry. APA is outperformed by 65.87% 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 strongly by -16.03% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.13%.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
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 12.27% 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-18.96%
EPS Next 2Y-11.66%
EPS Next 3Y-2.14%
EPS Next 5Y12.27%
Revenue Next Year0.79%
Revenue Next 2Y-3.35%
Revenue Next 3Y0.04%
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.
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
APA is valuated cheaply with a Price/Earnings ratio of 5.49.
Based on the Price/Earnings ratio, APA is valued cheaper than 88.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (26.73), we can say APA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.00 indicates a rather cheap valuation of APA.
Based on the Price/Forward Earnings ratio, APA is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (34.61), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.49 | ||
| Fwd PE | 7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APA is valued cheaply inside the industry as 94.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APA indicates a rather cheap valuation: APA is cheaper than 97.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.83 | ||
| EV/EBITDA | 2.13 |
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 5.00%, which is a nice return.
Compared to an average industry Dividend Yield of 6.31, APA pays a bit more dividend than its industry peers.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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 36.11% of its income as dividend. This is a 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%
20.44
+0.52 (+2.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change-0.7%
Ins Owners0.19%
Ins Owner Change2.6%
Market Cap7.38B
Analysts63.64
Price Target23.41 (14.53%)
Short Float %11.2%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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)-9.2%
Min Revenue beat(2)-12.36%
Max Revenue beat(2)-6.04%
Revenue beat(4)1
Avg Revenue beat(4)-5.94%
Min Revenue beat(4)-12.36%
Max Revenue beat(4)4.52%
Revenue beat(8)3
Avg Revenue beat(8)-6.36%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)10
Avg Revenue beat(16)4.43%
PT rev (1m)2.93%
PT rev (3m)1.96%
EPS NQ rev (1m)-14.62%
EPS NQ rev (3m)-38.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.34%
Revenue NQ rev (1m)9.48%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)12.91%
Revenue NY rev (3m)6.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.49 | ||
| Fwd PE | 7 | ||
| P/S | 0.71 | ||
| P/FCF | 1.83 | ||
| P/OCF | 1.7 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 2.13 |
EPS(TTM)3.72
EY18.2%
EPS(NY)2.92
Fwd EY14.28%
FCF(TTM)11.16
FCFY54.61%
OCF(TTM)12.05
OCFY58.95%
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 | 1.34 |
F-Score6
WACC8.72%
ROIC/WACC1.8
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-18.96%
EPS Next 2Y-11.66%
EPS Next 3Y-2.14%
EPS Next 5Y12.27%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%6.61%
Revenue Next Year0.79%
Revenue Next 2Y-3.35%
Revenue Next 3Y0.04%
Revenue Next 5Y0.39%
EBIT growth 1Y8.78%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year45.84%
EBIT Next 3Y13.32%
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%