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 12.24%, WACC is 6.13%, and the economic spread is 6.11%. On balance, returns on capital just exceed funding costs, implying limited but real value creation at the margin. Supporting metrics show ROE at 25.16% and ROA at 8.40%, 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 that is value-creative but with less room for execution slippage.

Assessed on a multiple basis, trailing P/E of 10.54, forward P/E of 10.67, PEG of 4.36. 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 valuation case rests more on quality, scarcity, or market leadership than on earnings growth alone. The company carries an aggregate current ratio of 0.82, 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 54.28%, operating margin at 30.79%, and free cash flow margin at 20.21%. The gross margin reading points to the company with solid but not outsized pricing power relative to direct costs. 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 -22.59%, where analyst assumptions imply downside unless operating trends re-accelerate, while TTM revenue growth of -8.39% pointing to declining revenues that, if sustained, could pressure margins and forward estimates. The forward EPS growth estimate of -1.2% is negative, which complicates the valuation case and suggests current multiples may not be as defensible 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 quantitative review surfaces concerns across multiple dimensions — investors considering a position here should be aware of the risks and size exposures accordingly.

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.