APA Corporation

NASDAQ Global Select
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Somewhat Bullish +35

APA Looks 63.3% Overvalued on GF Value™ as Dividend Sustainabili - GuruFocus

AI-generated analysis

📈 APA stock soared 24.85% in August as the energy sector surged 8.8% driven by crude prices nearing $90 per barrel.

💰 The company offers a 2.34% dividend yield with a conservative 20% payout ratio and a 17% three-year dividend growth rate.

📊 APA's GF Score™ is 63/100, highlighting strong profitability (8/10) but weak growth (3/10) and momentum (2/10).

💸 The stock trades at a significant premium with a current price of $42.77 versus a GF Value™ of $26.19.

🏗️ Operating margins are robust at 41.32% while return on equity stands at 26.67%.

👥 Insider activity shows no recent purchases but $1.2 million in sales over the past 12 months.

🌍 Revenue is primarily generated domestically across four segments: Egypt, North Sea, Suriname, and the U.S.

📉 The trailing P/E ratio of 9.04x is above the company's 5-year median of 6.19x.

Bullish Signals
  • APA stock surged 24.85% amid a broader energy sector rally driven by geopolitical tensions and rising crude oil prices.
  • The company maintains a sustainable dividend profile with a 2.34% yield, a low 20% payout ratio, and a strong 17% three-year growth rate.
  • APA demonstrates exceptional profitability with an operating margin of 41.32% and a return on equity of 26.67%.
  • The company has a diversified geographic footprint across Egypt, the North Sea, Suriname, and the U.S., reducing reliance on any single market.
Risk Factors
  • The stock is trading approximately 63.3% above its GF Value™ of $26.19, indicating a significant valuation premium.
  • Growth and momentum metrics are weak with scores of 3/10 and 2/10 respectively, suggesting challenges in revenue expansion.
  • Insider activity shows no recent purchases and $1.2 million in sales over the past 12 months, indicating modest reduction in exposure.
  • The current trailing P/E ratio of 9.04x is significantly higher than the company's 5-year median of 6.19x.
Full Analysis
On September 05, 2026, APA Corp (APA) surged 24.85% as the energy sector rallied on geopolitical tensions and crude prices nearing $90 per barrel. The stock's performance was driven by favorable operating leverage and attractive valuation multiples relative to its peers, positioning it as a standout performer in the broader market. Fundamentally, APA offers a dividend yield of 2.34% supported by a conservative 20% payout ratio and a strong 17% three-year dividend growth rate. The company operates across four segments—Egypt, the North Sea, Suriname, and the U.S.—with the majority of revenue generated domestically, providing exposure to stable and emerging markets. Despite strong profitability metrics including a 41.32% operating margin and 26.67% return on equity, APA is trading at a significant premium. Its current price of $42.77 implies it is approximately 63.3% overvalued based on GuruFocus' GF Value™ of $26.19. The company's GF Score™ stands at 63/100, reflecting moderate financial health with weak growth and momentum metrics. Institutional ownership shows mixed signals with 12 premium gurus holding shares evenly split between adding and trimming positions. Insider activity reveals no recent purchases but $1.2 million in sales over the past 12 months, suggesting insiders are modestly reducing exposure while maintaining engagement.