April 21, 2025 a 03:31 am
APA: Dividend Analysis - APA Corporation
APA Corporation maintains a robust dividend profile with a significant yield above 6%. Despite zero dividend growth over the past five years, the long-standing history of 44 years without a recent cut highlights stability. The reasonable payout ratios suggest sustainable dividend payments, supplemented by strong cash flows.
📊 Overview
The dividend profile of APA Corporation demonstrates a high dividend yield and a strong historical track record. This reinforces its attractiveness as a dividend stock despite the recent lack of dividend growth.
| Metric | Value |
|---|---|
| Sector | Energy |
| Dividend yield | 6.21% |
| Current dividend per share | 1.00 USD |
| Dividend history | 44 years |
| Last cut or suspension | None |
📈 Dividend History
The dividend history of APA Corporation illustrates a consistent commitment to shareholder returns. The stable flow of dividends over decades enhances investor confidence, particularly as no recent cuts have occurred.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.50 |
| 2024 | 1.00 |
| 2023 | 1.00 |
| 2022 | 0.625 |
| 2021 | 0.1375 |
📈 Dividend Growth
APA Corporation has experienced minimal dividend growth over the last 3 and 5 years. This stagnation may be a concern for growth investors but indicates steady income for dividend-focused portfolios.
| Time | Growth |
|---|---|
| 3 years | 0.94% |
| 5 years | 0% |
The average dividend growth is 0% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios are crucial in assessing dividend sustainability. APA Corporation's EPS-based payout ratio of 45.9% and FCF-based ratio of 47.1% suggest that dividends are well-covered and sustainable.
| Key figure | Ratio |
|---|---|
| EPS-based | 45.90% |
| Free cash flow-based | 47.10% |
Both payout ratios indicate a healthy buffer, implying dividends are supported by strong earnings and cash flow generation.
🗣️ Cashflow & Capital Efficiency
Cash flow analysis is vital for evaluating a company's operational efficiency. APA Corporation displays robust Free Cash Flow (FCF) and Earnings Yield, indicating efficient capital as well as cash flow utilization.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 9.43% | 6.99% | 16.42% |
| Earnings Yield | 9.86% | 25.83% | 23.71% |
| CAPEX to Operating Cash Flow | 78.65% | 75.33% | 48.51% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 21.24% | 24.67% | 51.49% |
| Return on Invested Capital | 14.03% | 28.83% | 34.79% |
These data highlight APA Corporation's efficient use of capital to generate cashflow, enhancing its value proposition.
🗣️ Balance Sheet & Leverage Analysis
Careful scrutiny of leverage ratios uncovers APA Corporation's financial stability. This is indicative of the firm's ability to meet its long-term obligations comfortably.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.17 | 2.00 | 13.29 |
| Debt-to-Assets | 31.78% | 34.79% | 42.75% |
| Debt-to-Capital | 53.85% | 66.64% | 93.00% |
| Net Debt to EBITDA | 1.33 | 1.10 | 0.71 |
| Current Ratio | 1.15 | 1.02 | 0.93 |
| Quick Ratio | 1.01 | 0.84 | 0.78 |
| Financial Leverage | 3.67 | 5.74 | 31.08 |
This analysis reflects a robust balance sheet with an improving net debt position and stable liquidity metrics over time.
🗣️ Fundamental Strength & Profitability
Examining the firm's underlying profitability, the Return on Equity, Assets and margins demonstrate APA Corporation’s advantageous operational capability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 15.23% | 107.53% | 868.56% |
| Return on Assets | 4.15% | 18.73% | 27.95% |
| Net Margin | 8.26% | 34.48% | 33.17% |
| EBIT Margin | 19.60% | 38.82% | 54.68% |
| EBITDA Margin | 42.87% | 57.37% | 68.74% |
| Gross Margin | 44.18% | 51.06% | 56.48% |
| R&D to Revenue | 0% | 0% | 0% |
The high margins and ROE highlight the company’s efficient management and profitable business model.
📈 Price Development
🗣️ Dividend Scoring System
The following scores offer insights into APA Corporation's dividend health across several key metrics:
| Criterion | Score | Visual |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 1 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
📈 Rating
APA Corporation presents a compelling dividend opportunity, particularly for income-seeking investors. While dividend growth is stagnant, the company’s solid payout ratios, stable financials, and long-standing dividend history secure a favorable position for future dividend stability. It is recommended for investors looking for steady income rather than growth.