APA Corp (APA, Financial), a prominent player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. The company's market cap stands at $12 billion, with its stock price currently at $39.05. Over the past week, the stock has seen a slight dip of -1.09%, but this is overshadowed by the impressive 12.74% increase over the past three months. According to the GF Value, a measure defined by GuruFocus.com that calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, APA Corp is currently fairly valued at $37.98. However, three months ago, the stock was modestly undervalued with a GF Value of $42.14.
APA Corp: A Brief Overview
Based in Houston, APA Corp is an independent exploration and production company. It operates primarily in the U.S., Egypt, the North Sea, and Suriname. At year-end 2022, proved reserves totaled 890 million barrels of oil equivalent, with net reported production of 400 thousand boe/d that year (64% of which was oil and natural gas liquids, with the remainder natural gas).
Profitability Analysis
APA Corp boasts a strong Profitability Rank of 7/10, indicating a high level of profitability. The company's operating margin stands at 42.41%, outperforming 85.54% of 982 companies in the same industry. Its ROE (Return on Equity) is an impressive 269.57%, better than 96.58% of 1023 companies, while its ROA (Return on Assets) is 11.25%, surpassing 78.52% of 1094 companies. The company's ROIC (Return on Invested Capital), a measure of how well a company generates cash flow relative to the capital it has invested in its business, is 17.81%, better than 84.67% of 1083 companies. Over the past 10 years, APA Corp has demonstrated profitability for 5 years, outperforming 50.68% of 953 companies.
Growth Prospects
APA Corp's Growth Rank stands at 6/10, indicating a moderate level of growth. The company's 3-year revenue growth rate per share is 24.50%, better than 76.11% of 858 companies. Its 5-year revenue growth rate per share is 11.00%, surpassing 66.84% of 787 companies. However, the company's future total revenue growth rate is estimated to be -10.17%, better than only 10.81% of 259 companies. The future EPS growth rate is estimated to be -1.00%, better than 46.15% of 65 companies.
Major Stock Holders
The top three holders of APA Corp's stock are HOTCHKIS & WILEY, holding 18,784,703 shares (6.11% share), Bill Nygren (Trades, Portfolio), holding 8,384,809 shares (2.73% share), and Smead Value Fund (Trades, Portfolio), holding 3,937,840 shares (1.28% share).
Competitive Landscape
APA Corp operates in a competitive industry, with major competitors including Ovintiv Inc (OVV, Financial) with a market cap of $13.04 billion, Chesapeake Energy Corp (CHK, Financial) with a market cap of $11.79 billion, and Texas Pacific Land Corp (TPL, Financial) with a market cap of $14.04 billion.
Conclusion
In conclusion, APA Corp's stock has seen a significant surge over the past three months, despite a slight dip over the past week. The company's strong profitability and moderate growth prospects, coupled with its fair valuation, make it a noteworthy player in the Oil & Gas industry. However, the company faces stiff competition from other industry giants. Investors should keep a close eye on APA Corp's performance in the coming months.
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.
