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 211 industry peers in the Oil, Gas & Consumable Fuels industry. APA scores excellent on profitability, but there are some minor concerns on its financial health. APA may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
Each year in the past 5 years APA had a positive operating cash flow.
1.2 Ratios
APA's Return On Assets of 5.50% is fine compared to the rest of the industry. APA outperforms 62.56% of its industry peers.
Looking at the Return On Equity, with a value of 18.75%, APA belongs to the top of the industry, outperforming 81.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.67%, APA belongs to the top of the industry, outperforming 91.00% of the companies in the same industry.
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 23.70%.
The 3 year average ROIC (23.28%) for APA is well above the current ROIC(15.67%). The reason for the recent decline needs to be investigated.
| 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.
With a decent Operating Margin value of 32.56%, APA is doing good in the industry, outperforming 73.46% of the companies in the same industry.
APA's Operating Margin has improved in the last couple of years.
APA has a Gross Margin of 70.09%. This is in the better half 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
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.
APA has less shares outstanding than it did 5 years ago.
APA has a better debt/assets ratio than last year.
2.2 Solvency
APA has an Altman-Z score of 1.32. 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 of 1.32. This is comparable to the rest of the industry: APA outperforms 52.13% of its industry peers.
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.
APA has a better Debt to FCF ratio (1.33) than 87.68% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that APA is somewhat dependend on debt financing.
APA has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: APA underperforms 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 | 1.32 |
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.
The Current ratio of APA (0.89) is worse than 63.51% of its industry peers.
APA has a Quick 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.
The Quick ratio of APA (0.74) is worse than 66.35% 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 by -2.19% in the last year.
Measured over the past years, APA shows a very strong growth in Earnings Per Share. The EPS has been growing by 245758.95% on average per year.
The Revenue has grown by 26.76% in the past year. This is a very strong growth!
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)-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
Based on estimates for the next years, APA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.27% on average per year.
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-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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 4.84, the valuation of APA can be described as very cheap.
Based on the Price/Earnings ratio, APA is valued cheaply inside the industry as 90.05% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (27.21), we can say APA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.73, the valuation of APA can be described as very cheap.
APA's Price/Forward Earnings ratio is rather cheap when compared to the industry. APA is cheaper than 84.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of APA to the average of the S&P500 Index (21.70), we can say APA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.84 | ||
| Fwd PE | 6.73 |
4.2 Price Multiples
APA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. APA is cheaper than 94.31% 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 | 1.74 | ||
| EV/EBITDA | 2.07 |
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 -2.39% 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
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-12.09%
EPS Next 3Y-2.39%
NASDAQ:APA (7/2/2025, 3:31:08 PM)
19.455
+0.51 (+2.72%)
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 Cap7.02B
Analysts63.64
Price Target22.74 (16.89%)
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 | 4.84 | ||
| Fwd PE | 6.73 | ||
| P/S | 0.67 | ||
| P/FCF | 1.74 | ||
| P/OCF | 1.61 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 2.07 |
EPS(TTM)4.02
EY20.66%
EPS(NY)2.89
Fwd EY14.86%
FCF(TTM)11.16
FCFY57.38%
OCF(TTM)12.05
OCFY61.93%
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 | 1.32 |
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%