APACHE CORP's gross profit margin for the first quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. APACHE CORP has very weak liquidity. Currently, the Quick Ratio is 0.36 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 35.88% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||1806.0||3647.0|
|Net Income ($mil)||-4651.0||236.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||229.0||1643.0|
|Total Assets ($mil)||48650.0||61121.0|
|Total Debt ($mil)||12273.0||9673.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||-337.32||76.75|
|Return on Assets||-21.15||2.86|
|Return on Equity||-48.51||7.17|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||376.92||390.07|
|Div / share||0.25||0.2|
|Book value / share||56.28||84.81|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3470917.0||5301474.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.10 indicates a significant discount versus the S&P 500 average of 2.88 and a significant discount versus the industry average of 11.40. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, APACHE CORP proves to trade at a discount to investment alternatives within the industry.
|APA NM||Peers 33.91||APA 3.39||Peers 10.02|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
APA's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
APA is trading at a significant discount to its peers.
|APA 67.58||Peers 50.95||APA NA||Peers 1.95|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
APA's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|APA 1.10||Peers 11.40||APA -559.76||Peers -19.83|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
APA is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, APA is expected to significantly trail its peers on the basis of its earnings growth rate.
|APA 1.97||Peers 2.40||APA -23.36||Peers -1.63|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
APA is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
APA significantly trails its peers on the basis of sales growth
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