Investment Thesis
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.
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
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
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
Financial Metrics
Revenue
0.0
Net Income
446.0M
EPS (Diluted)
$1.26
Free Cash Flow
554.0M
Total Assets
18.1B
Cash
293.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
6.9%
ROA
2.5%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.92x
Quick Ratio
0.78x
Debt/Equity
0.66x
Debt/Assets
0.0%
Interest Coverage
15.07x
Long-term Debt
4.3B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T09:05:47.845893 |
Data as of: 2026-03-31 |
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