APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - US03743Q1085 - Common Stock
23.84 USD
+0.62 (+2.67%)
23.69 USD
-0.15 (-0.63%)
Taking everything into account, APA scores 6 out of 10 in our fundamental rating. APA was compared to 209 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
In the past 5 years APA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.98%, APA is in the better half of the industry, outperforming 66.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.31%, APA is in the better half of the industry, outperforming 79.43% of the companies in the same industry.
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 21.91%.
The last Return On Invested Capital (15.16%) 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 | 5.98% | ||
| 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
APA has a Profit Margin of 10.75%. This is comparable to the rest of the industry: APA outperforms 56.94% of its industry peers.
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 better Gross Margin (69.00%) than 78.47% of its industry peers.
APA's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APA is creating value.
The number of shares outstanding for APA has been increased compared to 1 year ago.
The number of shares outstanding for APA has been reduced compared to 5 years ago.
The debt/assets ratio for APA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that APA is in the distress zone and has some risk of bankruptcy.
APA has a Altman-Z score (1.43) which 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.
Looking at the Debt to FCF ratio, with a value of 1.03, APA belongs to the top of the industry, outperforming 89.00% of the companies in the same industry.
APA has a Debt/Equity ratio of 0.73. This is a neutral value indicating APA is somewhat dependend on debt financing.
The Debt to Equity ratio of APA (0.73) is worse than 61.72% of its industry peers.
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 | 1.43 |
ROIC/WACC1.73
WACC8.74%
2.3 Liquidity
APA has a Current Ratio of 0.80. 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 Current ratio of APA (0.80) is worse than 66.03% of its industry peers.
A Quick Ratio of 0.67 indicates that APA may have some problems paying its short term obligations.
The Quick ratio of APA (0.67) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for APA have decreased strongly by -16.03% 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.
APA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.13%.
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-9.49%
EPS Next 2Y-8.29%
EPS Next 3Y-1.89%
EPS Next 5Y13.74%
Revenue Next Year1.4%
Revenue Next 2Y-3.73%
Revenue Next 3Y-0.83%
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.
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 6.41 indicates a rather cheap valuation of APA.
Based on the Price/Earnings ratio, APA is valued cheaper than 89.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of APA to the average of the S&P500 Index (26.90), we can say APA is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.58, the valuation of APA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APA indicates a rather cheap valuation: APA is cheaper than 83.73% of the companies listed in the same industry.
APA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APA indicates a rather cheap valuation: APA is cheaper than 94.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APA is valued cheaply inside the industry as 97.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.93 | ||
| EV/EBITDA | 2.32 |
4.3 Compensation for Growth
APA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-8.29%
EPS Next 3Y-1.89%
5. Dividend
5.1 Amount
APA has a Yearly Dividend Yield of 4.35%, which is a nice return.
APA's Dividend Yield is a higher than the industry average which is at 6.05.
APA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
The dividend of APA has a limited annual growth rate of 1.06%.
APA has been paying a dividend for at least 10 years, so it has 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
33.86% of the earnings are spent on dividend by APA. This is a low number and sustainable payout ratio.
The dividend of APA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.86%
EPS Next 2Y-8.29%
EPS Next 3Y-1.89%
23.84
+0.62 (+2.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change2.57%
Ins Owners0.19%
Ins Owner Change2.6%
Market Cap8.53B
Analysts63.64
Price Target23.98 (0.59%)
Short Float %12.85%
Short Ratio6.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)2.95%
PT rev (3m)4.44%
EPS NQ rev (1m)15.77%
EPS NQ rev (3m)-13.05%
EPS NY rev (1m)11.68%
EPS NY rev (3m)13.51%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)9.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.85 | ||
| P/FCF | 1.93 | ||
| P/OCF | 1.83 | ||
| P/B | 1.44 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 2.32 |
EPS(TTM)3.72
EY15.6%
EPS(NY)3.15
Fwd EY13.2%
FCF(TTM)12.36
FCFY51.83%
OCF(TTM)13
OCFY54.54%
SpS28.11
BVpS16.5
TBVpS16.5
PEG (NY)N/A
PEG (5Y)0
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%
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 | 0.73 | ||
| 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 | 1.43 |
F-Score6
WACC8.74%
ROIC/WACC1.73
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-9.49%
EPS Next 2Y-8.29%
EPS Next 3Y-1.89%
EPS Next 5Y13.74%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%6.61%
Revenue Next Year1.4%
Revenue Next 2Y-3.73%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.39%
EBIT growth 1Y-5.15%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year45.84%
EBIT Next 3Y13.32%
EBIT Next 5Y5.38%
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%