APA Corporation (APA) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: APA Corporation

Updated on October 3, 2026 · accounts published on August 5, 2026

Reading of October 3, 2026: A cash-generative energy business whose margins and returns on capital are slipping

APA trades at a P/E of 9.2 over the last 12 months, 45 % below its sector median of 16.7, with a 16.6 % free cash flow yield.

• Is APA expensive or cheap? APA's P/E of 9.2 over the last 12 months is 45 % below the energy sector median of 16.7.
• How is the business doing? Operating margin fell to 12 % over the last 12 months, from 31 % in fiscal 2025 and an 18 % average for 2014-2025.
• Does APA generate cash through the cycle and cover its dividend? Free cash flow covered the dividend 4.9 times in fiscal 2025, but it was positive in only 7 of the last 10 years.
• How strong is the balance sheet? Net debt was $12.74 per share in fiscal 2025, 29 % of the current price, and just 0.8× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $1.34 when APA reports on November 4, 2026, below the $1.89 of the last quarter.

Is APA expensive or cheap?

Over the last 12 months APA trades at a P/E of 9.2, 45 % below the median of 16.7 across 143 energy companies. Its free cash flow yield of 16.6 % is double the 8 % the sector treats as healthy. The cyclical view is less flattering. That P/E sits above APA's five-year average of 6.9, which in energy can mean either depressed earnings or optimism already priced in. EV/EBITDA of 3.5 is far below its nine-year average of 35.9. After a 76 % rise over 12 months, the stock is 12 % below its 52-week high of $47.41.

How is the business doing?

Revenue fell 8 % over the last 12 months while EPS rose 75 %, so profits have grown much faster than sales. The operating margin of 11.8 % over the last 12 months is well below the 30.8 % of fiscal 2025 and the 17.7 % average for 2014-2025. Net margin is higher, at 19.0 %, a gap worth watching. ROIC of 4.2 % is 3.4 points below the sector median of 7.7 %, a weak return on capital today. The five-year record is stronger: ROIC averaged 20.2 % over 2021-2025, but it topped 10 % in only 4 of the last 10 fiscal years.

Does APA generate cash through the cycle and cover its dividend?

Energy profits follow commodity prices, so the sector is judged on cash across the whole cycle and on whether the dividend survives bad years, more than on one year's earnings. In fiscal 2025 APA covered its dividend 4.9 times with free cash flow, far above the healthy threshold of 1.2×, and paid out only 25 % of earnings. The weak spot is consistency. Free cash flow was positive in 7 of the 10 fiscal years from 2016 to 2025, short of the 8 in 10 that signals discipline through the cycle. Capex took 31 % of revenue in fiscal 2025, above the healthy range of 10-20 %.

How strong is the balance sheet?

Leverage looks manageable. Net debt of 0.8× EBITDA in fiscal 2025 is well under the 2.0× the sector considers healthy, and debt to equity is 0.55 over the last 12 months. The warning signs are about liquidity and overall financial strength. A current ratio of 0.95 means short-term liabilities exceed short-term assets. The Altman Z-score of 1.3 sits in the distress zone, and the Piotroski score is a middling 5 of 9. The 2.3 % dividend yield over the last 12 months rests on a 25 % payout in fiscal 2025, which leaves room if earnings soften.

What to expect from the next earnings?

APA reports on November 4, 2026, and analysts expect EPS of $1.34. That is well below the $1.89 reported on August 5, 2026, which itself came in just under the $1.90 expected. The track record is mixed, with beats in 5 of the last 8 quarters. Estimates are steady: over the last 18 days the 2026 EPS consensus rose 0.5 %, from $6.04 to $6.08 among 14 analysts, and the revenue consensus barely moved. Of 53 analysts, 21 rate the stock a buy, 27 a hold and 5 a sell, a cautious stance on a stock up 76 % in a year.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.