📊 APA Key Takeaways
Is APA Corp (APA) a Good Investment?
APA Corp demonstrates strong operational cash generation ($554M FCF) and excellent debt servicing capability (15.1x interest coverage), but faces material headwinds with declining net income (-15.2% YoY) and tight liquidity metrics (current ratio 0.92x). Anomalous revenue reporting and missing profitability margins significantly reduce analytical confidence in fundamental health.
APA shows solid core profitability and cash generation, with $3.09B of operating income, $1.43B of net income, 23.5% ROE, and $4.54B of operating cash flow. Balance sheet leverage appears manageable with 0.74x debt-to-equity and 9.6x interest coverage, but sub-1.0 liquidity ratios and missing or inconsistent line items, including reported revenue of $0.00, reduce confidence in the quality and durability of the current fundamental picture.
Why Buy APA Corp Stock? APA Key Strengths
- Strong free cash flow generation of $554M with robust operating cash flow
- Excellent interest coverage ratio of 15.1x indicates minimal financial distress risk
- Moderate debt-to-equity ratio of 0.66x provides reasonable balance sheet flexibility
- Strong operating profitability supported by $3.09B in operating income and healthy returns on equity and assets
- Robust cash generation with $4.54B in operating cash flow and reported free cash flow matching that level
- Leverage appears reasonable for the business with 0.74x debt-to-equity and solid 9.6x interest coverage
APA Stock Risks: APA Corp Investment Risks
- Liquidity stress with current ratio of 0.92x and quick ratio of 0.78x below safe levels
- Net income declining 15.2% year-over-year despite stable cash flow indicates profitability erosion
- Revenue reporting anomaly ($0.00) and missing gross/operating margin data create analytical blind spots
- Weak near-term liquidity, with a 0.82x current ratio and 0.69x quick ratio, could pressure flexibility if commodity conditions weaken
- Financial data quality is impaired by missing or inconsistent inputs such as $0.00 revenue, limiting confidence in margin and growth analysis
- The business remains fundamentally exposed to earnings and cash flow volatility typical of crude oil and natural gas producers
Key Metrics to Watch
- Cash position trend and working capital adequacy relative to obligations
- Net income recovery trajectory and margin expansion in upcoming periods
- Operating cash flow sustainability and capital allocation priorities
- Operating cash flow and true free cash flow after capital expenditures
- Liquidity and leverage trends, especially current ratio, cash balance, and long-term debt
APA Corp (APA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
APA Profit Margin, ROE & Profitability Analysis
APA vs Energy Sector: How APA Corp Compares
How APA Corp compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is APA Corp Stock Overvalued? APA Valuation Analysis 2026
Based on fundamental analysis, APA Corp has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
APA Corp Balance Sheet: APA Debt, Cash & Liquidity
APA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: APA Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $9.25 reflects profitable operations.
APA Revenue Growth, EPS Growth & YoY Performance
APA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2021 | N/A | $316.0M | $0.82 |
| Q1 2021 | N/A | $388.0M | $1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APA Corp Dividends, Buybacks & Capital Allocation
APA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for APA Corp (CIK: 0001841666)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APA
What is the AI rating for APA?
APA Corp (APA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APA's key strengths?
Claude: Strong free cash flow generation of $554M with robust operating cash flow. Excellent interest coverage ratio of 15.1x indicates minimal financial distress risk. ChatGPT: Strong operating profitability supported by $3.09B in operating income and healthy returns on equity and assets. Robust cash generation with $4.54B in operating cash flow and reported free cash flow matching that level.
What are the risks of investing in APA?
Claude: Liquidity stress with current ratio of 0.92x and quick ratio of 0.78x below safe levels. Net income declining 15.2% year-over-year despite stable cash flow indicates profitability erosion. ChatGPT: Weak near-term liquidity, with a 0.82x current ratio and 0.69x quick ratio, could pressure flexibility if commodity conditions weaken. Financial data quality is impaired by missing or inconsistent inputs such as $0.00 revenue, limiting confidence in margin and growth analysis.
What is APA's revenue and growth?
APA Corp reported revenue of $0.0.
Does APA pay dividends?
APA Corp pays dividends, with $88.0M distributed to shareholders in the trailing twelve months.
Where can I find APA SEC filings?
Official SEC filings for APA Corp (CIK: 0001841666) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APA's EPS?
APA Corp has a diluted EPS of $1.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is APA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, APA Corp has a HOLD rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is APA stock overvalued or undervalued?
Valuation metrics for APA: ROE of 6.9% (sector avg: 14%), net margin of N/A (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy APA stock in 2026?
Our dual AI analysis gives APA Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APA's free cash flow?
APA Corp's operating cash flow is $554.0M, with capital expenditures of N/A.
How does APA compare to other Energy stocks?
Vs Energy sector averages: Net margin N/A (avg: 12%), ROE 6.9% (avg: 14%), current ratio 0.92 (avg: 1.3).