Apache Corp

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APA : NYSE : Basic Materials
$40.31 up 0.42 | 1.05%
Today's Range: 39.7801 - 40.93
Avg. Daily Volume: 3792200.0
08/18/17 - 4:03 PM ET

Financial Analysis


APACHE CORP's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. APACHE CORP has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.40% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1346.01386.0
EBITDA ($mil)722.0714.0
EBIT ($mil)74.0-59.0
Net Income ($mil)572.0-244.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1667.01201.0
Total Assets ($mil)22602.024346.0
Total Debt ($mil)8479.08720.0
Equity ($mil)6899.07142.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin66.6460.75
EBITDA Margin53.6451.51
Operating Margin5.5-4.26
Sales Turnover0.250.22
Return on Assets-0.01-36.03
Return on Equity0.42-131.39
Debt Q2 FY17 Q2 FY16
Current Ratio1.622.1
Debt/Capital0.550.55
Interest Expense117.0118.0
Interest Coverage0.63-0.5


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)380.93379.36
Div / share0.250.25
EPS1.5-0.65
Book value / share18.1118.83
Institutional Own % n/a n/a
Avg Daily Volume3744122.04006319.0

Valuation


SELL. APACHE CORP's P/E ratio indicates a significant premium compared to an average of 64.34 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 2.35 indicates a discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 541.69. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, APACHE CORP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
APA 608.71 Peers 64.34   APA 6.11 Peers 15.89

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

APA is trading at a significant premium to its peers.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
APA 72.22 Peers 34.73   APA NM Peers 0.55

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

APA is trading at a significant premium to its peers.

 

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.

APA's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APA 2.35 Peers 541.69   APA 100.28 Peers 154.68

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APA 2.82 Peers 2.03   APA 7.85 Peers 19.70

Premium. 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 significant premium to its industry.

 

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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