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APA

APA Group ASX:APA Stock Report

Last Price

AU$9.93

Market Cap

AU$11.7b

7D

-6.0%

1Y

14.7%

Updated

25 Sep, 2022

Data

Company Financials +
APA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends3/6

APA Stock Overview

APA Group engages in energy infrastructure business in Australia.

APA Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for APA Group
Historical stock prices
Current Share PriceAU$9.93
52 Week HighAU$12.25
52 Week LowAU$8.20
Beta0.075
1 Month Change-11.34%
3 Month Change-13.95%
1 Year Change14.67%
3 Year Change-14.18%
5 Year Change18.92%
Change since IPO377.40%

Recent News & Updates

Sep 04
APA Group (ASX:APA) Shares Could Be 40% Below Their Intrinsic Value Estimate

APA Group (ASX:APA) Shares Could Be 40% Below Their Intrinsic Value Estimate

How far off is APA Group ( ASX:APA ) from its intrinsic value? Using the most recent financial data, we'll take a look...

Shareholder Returns

APAAU Gas UtilitiesAU Market
7D-6.0%-1.9%-2.7%
1Y14.7%-0.3%-11.0%

Return vs Industry: APA exceeded the Australian Gas Utilities industry which returned -0.3% over the past year.

Return vs Market: APA exceeded the Australian Market which returned -11% over the past year.

Price Volatility

Is APA's price volatile compared to industry and market?
APA volatility
APA Average Weekly Movement3.5%
Gas Utilities Industry Average Movement4.1%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.9%
10% least volatile stocks in AU Market4.3%

Stable Share Price: APA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: APA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20072,000Rob Whealshttps://www.apa.com.au

APA Group engages in energy infrastructure business in Australia. The company operates through three segments: Energy Infrastructure, Asset Management, and Energy Investments. It operates natural gas pipelines, electricity interconnectors, gas fired power generation stations, and solar farms and wind farms, as well as gas storage, processing, and compression facilities.

APA Group Fundamentals Summary

How do APA Group's earnings and revenue compare to its market cap?
APA fundamental statistics
Market CapAU$11.72b
Earnings (TTM)AU$230.56m
Revenue (TTM)AU$2.73b

50.8x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APA income statement (TTM)
RevenueAU$2.73b
Cost of RevenueAU$227.56m
Gross ProfitAU$2.50b
Other ExpensesAU$2.27b
EarningsAU$230.56m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.20
Gross Margin91.67%
Net Profit Margin8.44%
Debt/Equity Ratio433.9%

How did APA perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

271%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is APA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APA?

Other financial metrics that can be useful for relative valuation.

APA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.1x
Enterprise Value/EBITDA13.6x
PEG Ratio4.4x

Price to Earnings Ratio vs Peers

How does APA's PE Ratio compare to its peers?

APA PE Ratio vs Peers
The above table shows the PE ratio for APA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.4x
AGL AGL Energy
5.2x5.2%AU$4.5b
9531 Tokyo GasLtd
10.1x-1.9%JP¥1.1t
PETGAS PETRONAS Gas Berhad
17.7x3.4%RM32.5b
9532 Osaka Gas
8.8x8.6%JP¥948.1b
APA APA Group
50.8x11.4%AU$11.7b

Price-To-Earnings vs Peers: APA is expensive based on its Price-To-Earnings Ratio (50.8x) compared to the peer average (10.4x).


Price to Earnings Ratio vs Industry

How does APA's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

Price-To-Earnings vs Industry: APA is expensive based on its Price-To-Earnings Ratio (50.8x) compared to the Global Gas Utilities industry average (13.9x)


Price to Earnings Ratio vs Fair Ratio

What is APA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

APA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio50.8x
Fair PE Ratio30.1x

Price-To-Earnings vs Fair Ratio: APA is expensive based on its Price-To-Earnings Ratio (50.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.1x).


Share Price vs Fair Value

What is the Fair Price of APA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: APA (A$9.93) is trading below our estimate of fair value (A$21.74)

Significantly Below Fair Value: APA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is APA Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APA's forecast earnings growth (11.4% per year) is above the savings rate (1.8%).

Earnings vs Market: APA's earnings (11.4% per year) are forecast to grow faster than the Australian market (6.6% per year).

High Growth Earnings: APA's earnings are forecast to grow, but not significantly.

Revenue vs Market: APA's revenue (3% per year) is forecast to grow slower than the Australian market (3.7% per year).

High Growth Revenue: APA's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APA's Return on Equity is forecast to be high in 3 years time (26.9%)


Discover growth companies

Past Performance

How has APA Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-17.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: APA has high quality earnings.

Growing Profit Margin: APA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: APA's earnings have declined by 17.9% per year over the past 5 years.

Accelerating Growth: APA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: APA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Gas Utilities industry (1.6%).


Return on Equity

High ROE: APA's Return on Equity (9.9%) is considered low.


Discover strong past performing companies

Financial Health

How is APA Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: APA's short term assets (A$1.7B) exceed its short term liabilities (A$821.7M).

Long Term Liabilities: APA's short term assets (A$1.7B) do not cover its long term liabilities (A$12.4B).


Debt to Equity History and Analysis

Debt Level: APA's net debt to equity ratio (397.5%) is considered high.

Reducing Debt: APA's debt to equity ratio has increased from 251.3% to 433.9% over the past 5 years.

Debt Coverage: APA's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: APA's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


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Dividend

What is APA Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: APA's dividend (5.34%) is higher than the bottom 25% of dividend payers in the Australian market (2.78%).

High Dividend: APA's dividend (5.34%) is low compared to the top 25% of dividend payers in the Australian market (7.03%).


Stability and Growth of Payments

Stable Dividend: APA's dividends per share have been stable in the past 10 years.

Growing Dividend: APA's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (271.2%), APA's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (123.1%), APA's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Rob Wheals

3.17yrs

Tenure

AU$3,989,152

Compensation

Mr. Robert Anthony Wheals, also known as Rob, BCom, CA, GAICD, MAICD, serves as Chief Executive Officer, Managing Director and Director at APT Pipelines Limited since July 6, 2019. Mr. Wheals served as Gro...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.61M) is about average for companies of similar size in the Australian market ($USD2.95M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: APA's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: APA's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

ASX:APA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Sep 22BuyAU$19,800Rhoda PhillippoIndividual1,800AU$11.00
25 May 22SellAU$216,971,117UniSuper LimitedCompany21,300,000AU$10.19
25 Feb 22BuyAU$49,567Rhoda PhillippoIndividual5,000AU$9.98
04 Jan 22BuyAU$598,244The Vanguard Group, Inc.Company57,358AU$10.43
17 Dec 21BuyAU$2,628,697The Vanguard Group, Inc.Company266,332AU$9.87
17 Dec 21SellAU$4,875,166The Vanguard Group, Inc.Company492,441AU$9.90
15 Dec 21BuyAU$26,627,778UniSuper LimitedCompany2,843,959AU$9.36
15 Dec 21SellAU$26,627,778UniSuper LimitedCompany2,843,959AU$9.36
07 Dec 21BuyAU$0The Vanguard Group, Inc.Company127,102AU$9.85
30 Nov 21SellAU$70,341The Vanguard Group, Inc.Company7,381AU$9.53
26 Nov 21BuyAU$4,114,911The Vanguard Group, Inc.Company426,858AU$9.64
12 Nov 21SellAU$6,031The Vanguard Group, Inc.Company698AU$8.64
05 Nov 21BuyAU$168,661,078The Vanguard Group, Inc.Company14,366,361AU$11.74
05 Nov 21SellAU$279,917,772The Vanguard Group, Inc.Company26,286,149AU$11.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 40.09% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.52%
UniSuper Limited
147,724,630A$1.5b0%12.39%
7.22%
State Street Global Advisors, Inc.
85,157,130A$845.6m0%0.03%
5.5%
BlackRock, Inc.
64,846,299A$643.9m-21.73%0.01%
5.04%
The Vanguard Group, Inc.
59,430,048A$590.1m0.71%0.01%
1.6%
Norges Bank Investment Management
18,860,106A$187.3m0%0.02%
1.01%
Argo Investments Limited
11,882,525A$118.0m0%2.29%
0.91%
Deutsche Asset & Wealth Management
10,710,985A$106.4m2.6%0.03%
0.87%
Franklin Resources, Inc.
10,309,843A$102.4m0.06%0.03%
0.8%
Massachusetts Financial Services Company
9,421,222A$93.6m0%0.02%
0.74%
BKI Investment Company Limited
8,775,389A$87.1m-7.56%7.44%
0.56%
Geode Capital Management, LLC
6,606,293A$65.6m1.59%0.01%
0.53%
ClearBridge Investments Limited
6,284,531A$62.4m2.96%0.88%
0.39%
J.P. Morgan Asset Management, Inc.
4,660,556A$46.3m-1.24%0.01%
0.35%
Netwealth Investments Ltd.
4,162,221A$41.3m9.13%0.6%
0.3%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,506,841A$34.8m1.49%0.01%
0.25%
Charles Schwab Investment Management, Inc.
2,990,454A$29.7m1.59%0.01%
0.21%
BetaShares Capital Limited
2,485,520A$24.7m4.55%0.21%
0.2%
Dimensional Fund Advisors LP
2,412,776A$24.0m1.63%no data
0.19%
Van Eck Associates Corporation
2,188,499A$21.7m-12.75%0.03%
0.17%
Northern Trust Global Investments
1,968,010A$19.5m2.13%no data
0.16%
Credit Suisse Asset Management (Switzerland)
1,935,651A$19.2m0.87%0.01%
0.16%
Nuveen Investments, Inc.
1,861,425A$18.5m-1.5%0.04%
0.15%
CBRE Investment Management Listed Real Assets LLC
1,797,000A$17.8m-32.57%0.15%
0.15%
UBS Asset Management
1,785,913A$17.7m-14.52%no data
0.11%
Legal & General Investment Management Limited
1,341,929A$13.3m0.76%no data

Company Information

APA Group's employee growth, exchange listings and data sources


Key Information

  • Name: APA Group
  • Ticker: APA
  • Exchange: ASX
  • Founded: 2007
  • Industry: Gas Utilities
  • Sector: Utilities
  • Implied Market Cap: AU$11.718b
  • Shares outstanding: 1.18b
  • Website: https://www.apa.com.au

Number of Employees


Location

  • APA Group
  • 580 George Street
  • Level 25
  • Sydney
  • New South Wales
  • 2000
  • Australia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APAASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 2000
APAJ.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJun 2000
PJZDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJun 2000
APACHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 2000

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.