APA APA

APA Corporation is an independent oil and gas exploration and production company with operations in the US Permian Basin, Egypt, and the North Sea. Sector: Energy.

APA (APA) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On the question of capital productivity, ROIC is 16.20%, WACC is 5.70%, and the economic spread is 10.50%. On balance, the economic spread is positive and meaningful, suggesting the company are building rather than eroding intrinsic value. Supporting metrics show ROE at 26.66% and ROA at 10.48%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

Assessed on a multiple basis, trailing P/E of 8.88, forward P/E of 8.75, PEG of 0.98. Forward P/E tracks closely with trailing P/E — a sign that the market sees the current earnings run rate as a reasonable baseline going forward. At this PEG level, the company offers what growth investors typically look for: earnings expansion priced at a reasonable relative multiple. The company carries an aggregate current ratio of 0.95, pointing to constrained near-term balance sheet coverage. Overall, the valuation setup reads as a balance between expected growth and execution risk, with liquidity acting as an important stabilizer if macro conditions become less favorable.

The margin stack reads as follows: gross margin sits at 64.87%, operating margin at 40.18%, and free cash flow margin at 24.20%. Gross margins at this level typically indicate businesses with structural pricing advantages and low direct cost sensitivity. At this level, operating margins reflect businesses with genuine scalability and above-average cost control. FCF margins are constructive here, reflecting the company that generate cash reliably after reinvestment requirements. Viewed together, these readings indicate a company that converts revenue into both earnings and cash with discipline.

The forward view combines two signals: the estimated 12-month price change of -7.51%, where analyst assumptions imply downside unless operating trends re-accelerate, while TTM revenue growth of 8.95% suggesting the company is growing revenues at a measured, sustainable pace. Analyst estimates point to EPS growth of 1.5%, suggesting steady earnings progress that supports the current multiple on a forward basis. One metric reflects operational reality, the other market expectation — both are useful inputs, but neither should be read in isolation. The interaction between revenue execution and analyst repricing will ultimately determine how closely realized returns track current expectations. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The overall evidence base is constructive, with more signals pointing up than down and no obvious structural impairment to the forward case.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.