APA Corp (APA, Financial), a Houston-based independent exploration and production company, has seen a significant shift in its stock performance over the past three months. Despite a recent 8.54% decrease over the past week, the company's stock has surged by 12.45% over the past quarter. This article aims to provide an in-depth analysis of APA Corp's recent stock performance, profitability, growth, and competitive position in the oil and gas industry.
Stock Performance of APA Corp
As of October 9, 2023, APA Corp's market capitalization stands at $11.94 billion, with its stock price at $38.85. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently at $37.98, indicating that the stock is fairly valued. This is a shift from three months ago when the GF Value was $42.14, suggesting that the stock was modestly undervalued. This change in valuation aligns with the 12.45% increase in the stock price over the past three months.
Introduction to APA Corp
APA Corp operates primarily in the U.S., Egypt, the North Sea, and Suriname. As of the end of 2022, the company's proved reserves totaled 890 million barrels of oil equivalent, with a net reported production of 400 thousand boe/d that year. 64% of this production was oil and natural gas liquids, with the remainder being natural gas. 
Profitability of APA Corp
APA Corp's profitability rank is 7/10, indicating a high level of profitability. The company's operating margin is 42.41%, which is better than 85.54% of companies in the industry. Its ROE is 269.57%, ROA is 11.25%, and ROIC is 17.81%, all of which are higher than the majority of companies in the industry. Over the past 10 years, the company has been profitable for 5 years, which is better than 50.68% of companies. 
Growth of APA Corp
APA Corp's growth rank is 6/10, indicating a moderate level of growth. The company's 3-year and 5-year revenue growth rates per share are 24.50% and 11.00% respectively, both of which are higher than the majority of companies in the industry. However, the company's future revenue and EPS growth rates are expected to decrease, with the total revenue growth rate estimated to be -10.17% and the EPS growth rate estimated to be -1.00%. Despite this, these rates are still better than a portion of companies. 
Holders of APA Corp Stock
The top three holders of APA Corp stock are HOTCHKIS & WILEY, Bill Nygren (Trades, Portfolio), and Smead Value Fund (Trades, Portfolio), holding 6.11%, 2.73%, and 1.28% of total shares respectively.
Competitors of APA Corp
APA Corp's top three competitors in the oil and gas industry are Ovintiv Inc (OVV, Financial) with a market capitalization of $12.91 billion, Chesapeake Energy Corp (CHK, Financial) with a market capitalization of $11.73 billion, and Texas Pacific Land Corp (TPL, Financial) with a market capitalization of $13.73 billion.
Conclusion
In conclusion, APA Corp has demonstrated strong performance, profitability, and growth in the past quarter. Despite facing competition from other companies in the industry and a projected decrease in future revenue and EPS growth rates, the company's stock remains fairly valued. With a high profitability rank and moderate growth rank, APA Corp continues to be a significant player in the oil and gas industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
