APA Corporation (APA)

FairStock Score: 74/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at APA as a commodity producer, not a franchise. It finds and produces oil and gas in the U.S., Egypt, the North Sea and Suriname, and its FairStock Lynch category is CYCLICAL—Oil & Gas E&P because earnings follow the economic cycle. The recent record is uneven: fiscal Q2 2026 net income was $747.0M and diluted EPS $2.11, up from $603.0M and $1.67 in fiscal Q2 2025; FY2025 net income was $1.4B versus $804.0M in FY2024, but FY2023 was $2.9B. That is the cycle, not a moat. Financial health has supports and cautions: D/E is 0.49, ROE 26.66%, ROCE 11.60%, Piotroski 9/9, trailing FCF $2.1B, but Altman Z-Score is 1.48. At the $51.66 close on 2026-10-26, FairStock calculations show P/E 10.90, P/B 2.58, EV/EBITDA 3.91, PEG 0.46, FCF yield 11.6%, and beta 0.37. The stock is near its 52-week high of $52.39 and above the Graham Number of $46.21 by 12.31%, so there is no Graham margin of safety. The price is statistically cheap on earnings and cash flow, but commodity E&Ps can look cheapest near cyclical peaks. I would want a wider discount for the lack of moat and the geographic/reserve risks, and I would watch cash flow, debt, and reserve replacement rather than extrapolate Q2 2026.

In plain English: It is an energy company that finds and produces oil and gas in the U.S., Egypt, the North Sea and Suriname. The business looks strong lately: net income was $747 million in the quarter ended June 30, 2026, up from $603 million a year earlier, and cash flow is high. The price looks cheap compared with profits and cash flow, but it is above a conservative value check and earnings can swing with oil and gas prices.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer