Fundamental analysis: APA Corporation (APA)

Awarener score: 7.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been growing at a very good pace. It's been weak when measured against peer companies.
APA Corporation business varies frequently, ups and downs are normal. It's risky. It looks somewhat better than rivals.

Margins score: 5.2

APA profit margins -on goods and services sold- are usually sufficient. They stand slightly worse than rival companies.
Business profit on sales tends to be huge. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still somewhat worse than similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain below average when measured against rivals.
Total net profit tends to be very poor when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 3.4

APA Corporation profit -on goods and services sold- has been growing at an excellent pace. It's been close to average when compared to competitors.
In recent years, earnings -on operations- have been growing at an extremely fast step, which has been well ranked against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 2.0

APA had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.5

APA Corporation usually gets good returns on the resources it controls. It proves almost average when measured against peer firms.
Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 7.2

APA usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands almost average when measured against rival firms.
The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly better than competitors.
Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved close to average when compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks slightly better than comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks encouraging in relation to competitors.

Balance Sheet score: 6.7

APA Corporation has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has plenty short-term resources to face short-term obligations. There're no liquidity concerns. It turns to be impressive in relation to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has plenty of dollars in cash and short-term receivables. It's impressive in relation to peer firms.
For every dollar of short-term obligations, the company has plenty of dollars in cash and equivalents, which is top-notch against similar enterprises.
Usually, sales are mostly on cash. It still ranks great when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be better than most peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's close to average when compared to similar companies.
Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands somewhat worse than rival firms.
Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks a slight improvement compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.9

APA Corporation looks extremely cheap in relation to profits and financial position. It happens to be more than average in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands slightly better than similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still more than average in relation to industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks extremely cheap. Possible reasons are that the market might be betting current earnings will be very hard to sustain through time, or that the company has very high fund needs, a weak financial position, or that earnings aren't representative. If that isn't the case, the stock price could be extremely attractive. It ranks more than average in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still in a weak position compared to peer companies.

Total score: 5.4

Company at a glance: APA Corporation (APA)

Sector, industry: Energy, Oil & Gas E&P

Market Cap: 11.17 billions

Revenues TTM: 11.07 billions

APA Corporation, through its subsidiaries, explores for, develops, and produces oil and gas properties. It has operations in the United States, Egypt, and the United Kingdom, as well as has exploration activities offshore Suriname. The company also operates gathering, processing, and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines. APA Corporation was founded in 1954 and is based in Houston, Texas.