APA CORP (APA) Stock Fundamental Analysis
NASDAQ:APA - Nasdaq - US03743Q1085 - Common Stock - Currency: USD
Overall APA gets a fundamental rating of 5 out of 10. We evaluated APA against 213 industry peers in the Oil, Gas & Consumable Fuels industry. APA has a medium profitability rating, but doesn't score so well on its financial health evaluation. APA is valued quite cheap, while showing a decent growth score. This is a good 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
With a Return On Assets value of 4.15%, APA perfoms like the industry average, outperforming 53.99% of the companies in the same industry.
With a decent Return On Equity value of 15.23%, APA is doing good in the industry, outperforming 72.30% of the companies in the same industry.
APA's Return On Invested Capital of 14.33% is amongst the best of the industry. APA outperforms 88.26% of its industry peers.
APA had an Average Return On Invested Capital over the past 3 years of 23.28%. This is below the industry average of 25.88%.
The 3 year average ROIC (23.28%) for APA is well above the current ROIC(14.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 15.23% | ||
| ROIC | 14.33% |
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
The Profit Margin of APA (8.26%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of APA has declined.
APA's Operating Margin of 33.21% is fine compared to the rest of the industry. APA outperforms 73.71% of its industry peers.
In the last couple of years the Operating Margin of APA has grown nicely.
The Gross Margin of APA (71.89%) is better than 81.69% 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 | 33.21% | ||
| PM (TTM) | 8.26% | ||
| GM | 71.89% |
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.
Compared to 1 year ago, APA has more shares outstanding
Compared to 5 years ago, APA has less shares outstanding
The debt/assets ratio for APA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that APA is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.19, APA perfoms like the industry average, outperforming 48.36% of the companies in the same industry.
APA has a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as APA would need 8.52 years to pay back of all of its debts.
APA's Debt to FCF ratio of 8.52 is in line compared to the rest of the industry. APA outperforms 54.46% of its industry peers.
APA has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APA (1.13) is worse than 72.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.47
WACC9.77%
2.3 Liquidity
APA has a Current Ratio of 1.15. This is a normal value and indicates that APA is financially healthy and should not expect problems in meeting its short term obligations.
APA has a Current ratio (1.15) which is in line with its industry peers.
APA has a Quick Ratio of 1.01. This is a normal value and indicates that APA is financially healthy and should not expect problems in meeting its short term obligations.
APA has a Quick ratio of 1.01. This is comparable to the rest of the industry: APA outperforms 53.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
APA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.19%.
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 17.61%.
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)17.61%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.29% on average over the next years.
EPS Next Y-20.26%
EPS Next 2Y-12.8%
EPS Next 3Y-2.87%
EPS Next 5Y8.82%
Revenue Next Year-7.56%
Revenue Next 2Y-5.16%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 4.29 indicates a rather cheap valuation of APA.
90.14% of the companies in the same industry are more expensive than APA, based on the Price/Earnings ratio.
APA is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.07, 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 88.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. APA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APA is valued cheaper than 93.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APA is valued a bit cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 2.12 |
4.3 Compensation for Growth
The decent profitability rating of APA may justify a higher PE ratio.
A cheap valuation may be justified as APA's earnings are expected to decrease with -2.87% in the coming years.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-12.8%
EPS Next 3Y-2.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.63%, APA is a good candidate for dividend investing.
The stock price of APA dropped by -24.31% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.05, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
APA pays out 43.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of APA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.91%
EPS Next 2Y-12.8%
EPS Next 3Y-2.87%
17.25
-0.07 (-0.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.79%
Inst Owner Change0.37%
Ins Owners0.21%
Ins Owner Change4.68%
Market Cap6.24B
Analysts63.75
Price Target22.96 (33.1%)
Short Float %10.39%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
Yearly Dividend1.06
Dividend Growth(5Y)1.06%
DP43.91%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.86%
Min EPS beat(2)-19.51%
Max EPS beat(2)-2.21%
EPS beat(4)1
Avg EPS beat(4)-3.99%
Min EPS beat(4)-19.51%
Max EPS beat(4)23.7%
EPS beat(8)4
Avg EPS beat(8)1.95%
EPS beat(12)7
Avg EPS beat(12)2.38%
EPS beat(16)10
Avg EPS beat(16)4.99%
Revenue beat(2)0
Avg Revenue beat(2)-11.13%
Min Revenue beat(2)-12.36%
Max Revenue beat(2)-9.89%
Revenue beat(4)1
Avg Revenue beat(4)-7.64%
Min Revenue beat(4)-12.82%
Max Revenue beat(4)4.52%
Revenue beat(8)3
Avg Revenue beat(8)-5.98%
Revenue beat(12)7
Avg Revenue beat(12)1.42%
Revenue beat(16)11
Avg Revenue beat(16)6.44%
PT rev (1m)-19.34%
PT rev (3m)-26.94%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)-11.04%
EPS NY rev (1m)-6.87%
EPS NY rev (3m)-15.32%
Revenue NQ rev (1m)2.73%
Revenue NQ rev (3m)4.81%
Revenue NY rev (1m)-3.93%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 6.07 | ||
| P/S | 0.64 | ||
| P/FCF | 8.8 | ||
| P/OCF | 1.72 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 2.12 |
EPS(TTM)4.02
EY23.3%
EPS(NY)2.84
Fwd EY16.48%
FCF(TTM)1.96
FCFY11.36%
OCF(TTM)10.01
OCFY58.03%
SpS26.92
BVpS14.6
TBVpS14.6
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 15.23% | ||
| ROCE | 19.68% | ||
| ROIC | 14.33% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 14.9% | ||
| OM | 33.21% | ||
| PM (TTM) | 8.26% | ||
| GM | 71.89% | ||
| FCFM | 7.28% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 128.46% | ||
| Cap/Sales | 29.9% | ||
| Interest Coverage | 8.69 | ||
| Cash Conversion | 65.82% | ||
| Profit Quality | 88.18% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.19 |
F-Score6
WACC9.77%
ROIC/WACC1.47
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-20.26%
EPS Next 2Y-12.8%
EPS Next 3Y-2.87%
EPS Next 5Y8.82%
Revenue 1Y (TTM)17.61%
Revenue growth 3Y6.84%
Revenue growth 5Y8.45%
Sales Q2Q%19.94%
Revenue Next Year-7.56%
Revenue Next 2Y-5.16%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.29%
EBIT growth 1Y-4.32%
EBIT growth 3Y5.9%
EBIT growth 5Y26.21%
EBIT Next Year57.02%
EBIT Next 3Y12.77%
EBIT Next 5Y5.99%
FCF growth 1Y-8.16%
FCF growth 3Y-33.24%
FCF growth 5YN/A
OCF growth 1Y15.69%
OCF growth 3Y1.17%
OCF growth 5Y4.77%