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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.4%
Sector: 6.7%
Dividend Analysis audit
INCOME
4.16%
Trailing Yield
$4.16
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
47%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, APA Corp (APA) receives a "Buy" rating with a composite score of 54.7/100, ranked #14 out of 4446 stocks. Key factor scores: Quality 50/100, Value 79/100, Momentum 69/100. This is quantitative analysis only — not investment advice.
APA Corp (APA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does APA Corp Do?
APA Corporation, through its subsidiaries, explores for, develops, and produces oil and gas properties. It has operations in the United States, Egypt, and the United Kingdom, as well as has exploration activities offshore Suriname. The company also operates gathering, processing, and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines. APA Corporation was founded in 1954 and is based in Houston, Texas. APA Corp (APA) is classified as a large-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO John J. Christmann and employs approximately 2,270 people. With a market capitalization of $14.6B, APA is one of the prominent companies in the Energy sector.
APA Corp (APA) Stock Rating — Buy (April 2026)
As of April 2026, APA Corp receives a Buy rating with a composite score of 54.7/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.APA ranks #14 out of 4,446 stocks in our coverage universe. Within the Energy sector, APA Corp ranks #2 of 128 stocks, placing it in the top 10% of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
APA Stock Price and 52-Week Range
APA Corp (APA) currently trades at $38.54. The stock lost $0.43 (1.1%) in the most recent trading session. The 52-week high for APA is $36.77, which means the stock is currently trading 4.8% from its annual peak. The 52-week low is $13.58, putting the stock 183.7% above its annual trough. Recent trading volume was 4.9M shares, reflecting moderate market activity.
Is APA Overvalued or Undervalued? — Valuation Analysis
APA Corp (APA) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.20x, compared to the Energy sector average of 19.63x — a discount of 43%. The price-to-book ratio stands at 1.95x, versus the sector average of 1.64x. The price-to-sales ratio is 1.45x, compared to 0.47x for the average Energy stock. On an enterprise value basis, APA trades at 6.15x EV/EBITDA, versus 3.50x for the sector.
Based on these multiples, APA Corp appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
APA Corp Profitability — ROE, Margins, and Quality Score
APA Corp (APA) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.4%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 6.9% versus the sector average of 3.7%.
On a margin basis, APA Corp reports gross margins of 85.0%, compared to 52.7% for the sector. The operating margin is 24.3% (sector: 10.7%). Net profit margin stands at 13.5%, versus 6.4% for the average Energy stock. Revenue growth is running at -16.8% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
APA Debt, Balance Sheet, and Financial Health
APA Corp has a debt-to-equity ratio of 154.0%, compared to the Energy sector average of 55.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.82x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $4.49B. Cash and equivalents stand at $475M.
APA has a beta of 1.33, meaning it is more volatile than the broader market — a $10,000 investment in APA would be expected to move 32.5% more than the S&P 500 on any given day. The stability factor score for APA Corp is 48/100, reflecting average volatility within the normal range for its sector.
APA Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, APA Corp reported revenue of $9.46B and earnings per share (EPS) of $3.99. Net income for the quarter was $1.22B. Gross margin was 85.0%. Operating income came in at $2.23B.
In FY 2025, APA Corp reported revenue of $8.95B and earnings per share (EPS) of $3.99. Net income for the quarter was $1.69B. Revenue grew -8.1% year-over-year compared to FY 2024. Operating income came in at $3.09B.
In Q3 2025, APA Corp reported revenue of $2.12B and earnings per share (EPS) of $0.57. Net income for the quarter was $278M. Revenue grew -16.4% year-over-year compared to Q3 2024. Operating income came in at $767M.
In Q2 2025, APA Corp reported revenue of $2.18B and earnings per share (EPS) of $1.67. Net income for the quarter was $665M. Revenue grew -14.4% year-over-year compared to Q2 2024. Operating income came in at $737M.
Over the past 8 quarters, APA Corp has demonstrated a growth trajectory, with revenue expanding from $2.54B to $9.46B. Investors analyzing APA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
APA Dividend Yield and Income Analysis
APA Corp (APA) currently pays a dividend yield of 4.2%. At this yield, a $10,000 investment in APA stock would generate approximately $$416.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning APA offers above-average income for its sector. The net margin of 13.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
APA Momentum and Technical Analysis Profile
APA Corp (APA) has a momentum factor score of 69/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
APA vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing APA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full APA vs S&P 500 (SPY) comparison to assess how APA Corp stacks up against the broader market across all factor dimensions.
APA Next Earnings Date
No upcoming earnings date has been announced for APA Corp (APA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy APA? — Investment Thesis Summary
The bull case for APA Corp rests on several quantitative strengths. The value score of 79/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 69/100, suggesting the trend favors buyers.
In summary, APA Corp (APA) earns a Buy rating with a composite score of 54.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on APA stock.
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Institutional Research Dossier
APA Corp (APA) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
APA Corp (APA) receives a Buy rating based on its compelling valuation, strong profitability metrics relative to the energy sector, and positive momentum indicators. While the company faces inherent risks associated with the cyclical nature of the oil and gas industry and its relatively high debt levels, its discounted valuation, particularly its low EV/EBITDA multiple, suggests that the market is undervaluing its earnings potential and asset base. The primary takeaway is that APA offers a potentially attractive entry point for investors seeking exposure to the energy sector, provided they are comfortable with the associated volatility and leverage.
The company's superior profitability, as evidenced by its significantly higher ROE, gross margin, operating margin, and net margin compared to the sector average, underscores its operational efficiency and ability to generate profits even amidst fluctuating commodity prices. This, coupled with a strong value score driven by low multiples, makes APA a compelling investment opportunity, despite some concerns regarding its capital allocation and stability.
Business Strategy & Overview
APA Corporation operates as an independent energy company engaged in the exploration, development, and production of oil and gas properties. Its operations are geographically diversified, spanning the United States, Egypt, and the United Kingdom, with exploration activities also underway offshore Suriname. This diversification mitigates risk associated with reliance on a single geographic region and allows APA to capitalize on varying geological opportunities and regulatory environments.
The company's strategy centers on maximizing shareholder value through disciplined capital allocation, focusing on high-return projects, and maintaining a strong balance sheet. APA actively manages its portfolio of assets, divesting non-core properties to streamline operations and reinvest in more profitable ventures. The ownership in Permian-to-Gulf Coast pipelines provides a strategic advantage, ensuring reliable transportation of its production and potentially generating additional revenue streams.
APA's business model is inherently tied to commodity prices, with revenue and profitability directly influenced by the prevailing prices of oil and natural gas. The company employs hedging strategies to mitigate price volatility and provide a degree of revenue certainty. However, these strategies can also limit upside potential if prices rise significantly.
The company's exploration activities, particularly offshore Suriname, represent a significant growth opportunity. Successful exploration and development in this region could substantially increase APA's reserves and production, driving future revenue growth. However, exploration is inherently risky, and there is no guarantee of success.
APA's competitive landscape includes major integrated oil companies, independent exploration and production companies, and national oil companies. The company competes on the basis of technical expertise, operational efficiency, and access to capital. Its diversified asset base and strategic focus on high-return projects provide a competitive edge.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-16.8%
Sector: -1.2%
+1338% VS SCTR
Economic Moat Analysis
APA Corporation's economic moat can be classified as Narrow. While the company possesses certain advantages, they are not substantial enough to create a wide and enduring competitive edge. The primary source of APA's narrow moat stems from its cost advantages and strategic asset positioning.
The company's operational efficiency, reflected in its superior profitability metrics compared to the sector average, suggests a degree of cost advantage. This could be attributed to efficient drilling techniques, optimized production processes, or favorable access to resources. However, these advantages are not insurmountable, and competitors can adopt similar practices or technologies over time.
APA's ownership in Permian-to-Gulf Coast pipelines provides a strategic advantage by ensuring reliable transportation of its production. This vertical integration reduces transportation costs and provides a degree of control over the supply chain. However, this advantage is limited by the availability of alternative transportation options and the potential for regulatory changes.
The company's diversified asset base, spanning multiple geographic regions, mitigates risk and provides access to a wider range of geological opportunities. However, this diversification does not necessarily translate into a significant competitive advantage, as many other energy companies also operate globally.
APA does not appear to possess significant network effects or switching costs. Customers typically purchase oil and gas based on price and availability, with little brand loyalty or switching barriers. The company's intangible assets, such as patents or proprietary technologies, are not prominently featured in its business strategy, suggesting a limited role in creating a competitive advantage.
Efficient scale is not a primary driver of APA's competitive position. While the company benefits from economies of scale in its operations, it does not dominate the market to the extent that it can dictate prices or exclude competitors. Therefore, while APA exhibits some characteristics of a narrow moat, its competitive advantages are not sufficiently strong or durable to warrant a wider classification.
Financial Health & Profitability
APA Corporation's financial health presents a mixed picture. While the company exhibits strong profitability, its revenue growth has been volatile, and its debt levels are relatively high. The TTM revenue of $8.95 billion represents a significant decrease of -16.8% compared to the previous year, indicating challenges in maintaining revenue momentum. This decline is more pronounced than the sector average of -1.7%, raising concerns about APA's ability to navigate market fluctuations and maintain its competitive position.
Despite the revenue decline, APA's profitability metrics remain robust. The company's gross margin of 85.0%, operating margin of 24.3%, and net margin of 13.5% significantly exceed the sector averages of 55.1%, 10.6%, and 6.3%, respectively. This suggests that APA has been able to maintain its profitability by controlling costs and optimizing its operations, even amidst declining revenue.
The company's return on equity (ROE) of 17.5% is also significantly higher than the sector average of 6.9%, indicating efficient utilization of shareholder equity to generate profits. However, the company's debt-to-equity ratio of 154.00 is considerably higher than the sector average of 55.00, indicating a higher degree of financial leverage. This increased leverage amplifies both potential gains and losses, making APA more vulnerable to adverse market conditions.
Analyzing the quarterly financial history reveals a fluctuating pattern of revenue and net income. While some quarters exhibit strong performance, others show declines, reflecting the inherent volatility of the oil and gas industry. The current ratio of 0.82 indicates that APA may face challenges in meeting its short-term obligations, further highlighting the risks associated with its high debt levels.
The free cash flow (FCF) of $1.00 billion demonstrates the company's ability to generate cash from its operations. However, it is important to assess how APA is deploying this cash, whether it is being used to reduce debt, invest in growth opportunities, or return capital to shareholders. The relatively low short interest score of 9/100 suggests that short sellers are not particularly bearish on APA's prospects, which could be interpreted as a positive sign.
Valuation Assessment
APA Corporation's valuation appears compelling based on several key metrics. The company's P/E ratio of 9.8x is significantly lower than the sector average of 19.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA multiple of 1.1x is substantially lower than the sector average of 3.5x, further reinforcing the notion that the market is undervaluing APA's asset base and earnings potential.
These low multiples could be attributed to concerns about the company's high debt levels, volatile revenue growth, or the inherent risks associated with the oil and gas industry. However, the company's strong profitability metrics, as evidenced by its high ROE, gross margin, operating margin, and net margin, suggest that these concerns may be overblown.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of APA's stock. However, based on the available data, it appears that the stock is trading at a significant discount to its intrinsic value. The low P/E and EV/EBITDA multiples suggest that the market is not fully recognizing the company's earnings potential and asset base.
Compared to its historical valuation, APA's current multiples are also relatively low. This could be due to a change in investor sentiment towards the energy sector or concerns about the company's specific challenges. However, if APA can successfully navigate these challenges and maintain its profitability, its stock price could appreciate significantly.
It is important to note that valuation is not an exact science, and different investors may have different opinions about the fair value of APA's stock. However, based on the available data, it appears that the stock is currently undervalued and offers a potentially attractive entry point for investors.
Risk & Uncertainty
APA Corporation faces several specific risks that could negatively impact its business and financial performance. The most significant risk is the volatility of commodity prices. As an oil and gas producer, APA's revenue and profitability are directly tied to the prices of oil and natural gas. Fluctuations in these prices can significantly impact the company's earnings and cash flow. While hedging strategies can mitigate some of this risk, they can also limit upside potential if prices rise significantly.
Another significant risk is geopolitical risk, particularly in Egypt, where APA has substantial operations. Political instability, regulatory changes, or expropriation of assets could disrupt the company's operations and negatively impact its financial results. The company's exploration activities offshore Suriname also carry inherent risks, including geological uncertainty, regulatory hurdles, and potential environmental liabilities.
High debt levels pose another risk to APA's financial health. The company's debt-to-equity ratio of 154.00 is significantly higher than the sector average, increasing its vulnerability to adverse market conditions. Rising interest rates or a decline in commodity prices could make it more difficult for APA to service its debt, potentially leading to financial distress.
Environmental regulations and concerns about climate change also pose a risk to APA's business. Increasingly stringent environmental regulations could increase the company's operating costs and limit its ability to explore and develop new resources. Growing public awareness of climate change could also reduce demand for oil and gas, negatively impacting APA's revenue.
Finally, competition from other energy companies poses a constant threat to APA's market share and profitability. The energy industry is highly competitive, and APA faces competition from both large integrated oil companies and smaller independent producers. The company must continuously innovate and improve its operations to maintain its competitive edge.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAPA's discounted valuation, particularly its low EV/EBITDA multiple, provides a compelling entry point for investors seeking exposure to the energy sector.
BULL VIEWThe company's superior profitability metrics, including ROE, gross margin, and operating margin, demonstrate its operational efficiency and ability to generate profits even amidst fluctuating commodity prices.
BULL VIEWSuccessful exploration and development in Suriname could significantly increase APA's reserves and production, driving future revenue growth and shareholder value.
The Bear Case
BEAR VIEWAPA's high debt levels make it vulnerable to adverse market conditions, such as rising interest rates or a decline in commodity prices.
BEAR VIEWThe company's volatile revenue growth and reliance on commodity prices create significant uncertainty about its future earnings.
BEAR VIEWGeopolitical risks in Egypt and regulatory hurdles in Suriname could disrupt APA's operations and negatively impact its financial results.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score APA and 4,400+ other equities.
APA Corp exhibits a 65% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.9%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
85.0%
Sector: 52.7%
Operating Margin
Core business profitability
24.3%
Sector: 10.7%
Net Margin
Bottom-line profitability
13.5%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+120%
Income Projection audit
A $10,000 investment would generate approximately $416 annually in dividends at the current trailing rate.
