APA Group (APA) AI Stock Analysis

• Market Cap: $10.81B
• Dividend Yield: 7.02%
• Average Volume (3M): 3.31M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.32
• Revenue Growth: 8.15%
• EPS Growth: -103.96%
• Country: AU
• Employees: 2,700
• Sector: Utilities
• Sector Strength: 86
• Industry: Regulated Gas
• EPS (TTM): 0.03
• Shares Outstanding: 1,304,487,500
• 10 Day Avg. Volume: 3,277,420
• 30 Day Avg. Volume: 3,313,095
• PEG Ratio: 2.31
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.49
• Price Target Upside: 2.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ―

APA Group scores well due to its strong financial performance with substantial revenue and profit growth. However, the high leverage poses financial risks, and fluctuating cash flows could impact future stability. The technical outlook is positive, though limited by insufficient market momentum indicators. Valuation is challenging due to a negative P/E ratio, but the high dividend yield provides some appeal.

APA Group Business Overview & Revenue Model

Company Description

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. The company has interests in approximately 15,000 kilometers of gas transmission pipelines; approximately 29,500 kilometers of gas mains and pipelines; and 1.4 million gas consumer connections. It also provides commercial, operating, and asset maintenance services to its energy investments and third parties; and invests in unlisted entities. The company was incorporated in 2007 and is headquartered in Sydney, Australia.

How the Company Makes Money

APA Group generates revenue primarily through long-term contracts for the transportation and distribution of natural gas. These contracts are often with utility companies, energy producers, and industrial users. The company operates a fee-based model, charging fees based on the volume of gas transported and the length of the transportation distance. Additionally, APA Group earns income through its investments in energy infrastructure projects and partnerships with various energy sector companies. The stability of these long-term contracts and strategic partnerships significantly contributes to the company's financial performance.

APA Group Financial Statement Overview

Summary

APA Group exhibits strong revenue and profit growth, supported by efficient operations and cost management. However, high leverage indicates potential financial risks, and cash flow generation fluctuates due to significant capital expenditures.

Income Statement

APA Group has demonstrated strong revenue growth, with a noticeable increase in total revenue from 2023 to 2024. The gross profit margin is robust at approximately 91.7% in 2024, indicating efficient cost management. The EBIT and EBITDA margins are also impressive, at 76.4% and 85.4% respectively, showcasing strong operational efficiency. Net profit margin improved significantly to 31.9% in 2024, highlighting enhanced profitability. However, historical fluctuations in net income suggest potential volatility in earnings.

Balance Sheet

The balance sheet reveals a heavily leveraged position with a debt-to-equity ratio of approximately 4.00 in 2024, which could pose financial risks in adverse conditions. The equity ratio is relatively low at 16.6%, implying a higher reliance on debt financing. However, the return on equity is strong at 30.1%, reflecting effective use of equity to generate profits. The increasing equity base year-over-year is a positive sign of financial growth.

Cash Flow

The cash flow analysis shows a stable operating cash flow relative to net income, with a ratio of 1.18 in 2024, indicating good cash conversion. However, free cash flow is relatively low, reflecting high capital expenditures. The free cash flow growth rate has been inconsistent, suggesting variability in cash generation capacity. Despite these challenges, the company manages to maintain positive free cash flow, which supports its debt servicing and investment needs.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.17B	3.06B	2.83B	2.69B	2.56B	2.56B
	Gross Profit
2.95B	2.81B	947.00M	911.02M	923.86M	980.28M
	EBIT
2.46B	2.34B	873.00M	899.26M	914.43M	966.69M
	EBITDA
1.90B	2.62B	1.68B	1.61B	1.36B	1.61B
	Net Income Common Stockholders
-46.00M	978.00M	263.00M	230.56M	-42.17M	317.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.60B	676.00M	513.00M	940.28M	663.04M	1.17B
	Total Assets
20.61B	19.56B	16.52B	16.20B	15.12B	16.54B
	Total Debt
14.35B	12.99B	11.59B	10.96B	9.99B	10.99B
	Net Debt
13.03B	12.32B	11.07B	10.02B	9.33B	9.82B
	Total Liabilities
17.83B	16.32B	14.61B	13.57B	12.17B	13.32B
	Stockholders Equity
2.78B	3.25B	1.91B	2.63B	2.95B	3.21B
Cash Flow		Free Cash Flow
230.00M	60.00M	26.00M	508.22M	618.03M	668.62M
	Operating Cash Flow
1.23B	1.16B	1.21B	1.20B	1.05B	1.09B
	Investing Cash Flow
-1.03B	-2.66B	-969.00M	-1.27B	-432.02M	-296.14M
	Financing Cash Flow
-219.00M	1.66B	-664.00M	360.66M	-1.14B	26.38M

APA Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:APA, the sentiment is Positive. The current price of 8.29 is below the 20-day moving average (MA) of 8.29, above the 50-day MA of 8.14, and above the 200-day MA of 7.33, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 53.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:APA.

APA Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APA	68 Neutral	$10.81B	8.55	-1.44%	7.02%	8.15%	-103.96%
Sector *	64 Neutral	$8.58B	10.27	4.70%	4.37%	4.15%	-13.05%
AGLNF		$4.39B	28.69	4.36%	5.86%	―	―
CAHPF		$11.32B	24.87	16.97%	1.39%	―	―
OGFGF		$11.95B	12.68	14.75%	5.49%	―	―
TRAUF		$28.35B	557.61	0.68%	4.76%	―	―
SPK		AU$3.91B	21.12	12.57%	13.51%	―	―

APA Group Corporate Events

APA Group Announces Change of Registry Address

APA Group has announced a change in the address of its registry office, MUFG Corporate Markets (AU) Limited, effective from April 14, 2025. The new location is Liberty Place, Level 41, 161 Castlereagh St, Sydney, NSW 2000. This change does not affect the telephone numbers or postal address, ensuring continuity in communication. This move is part of APA Group’s ongoing efforts to streamline its operations and maintain its position as a key player in Australia’s energy infrastructure sector.

Franklin Resources Acquires Substantial Stake in APA Group

Franklin Resources, Inc., along with its affiliates, has become a substantial holder in APA Group Limited as of March 14, 2025. They hold a 5.05% voting power in the company, which is based on 1,294,951,714 shares. This development indicates a significant investment by Franklin Resources, potentially impacting APA Group’s shareholder dynamics and influencing future corporate decisions.

APA Group Announces Quotation of New Securities

APA Group has announced the issuance of 9,535,794 fully paid units of stapled securities, which will be quoted on the Australian Securities Exchange (ASX) as of March 17, 2025. This move is part of a dividend or distribution plan, potentially enhancing the company’s capital structure and providing additional liquidity for stakeholders, thereby strengthening its position in the energy infrastructure market.

State Street Global Advisors Adjusts Substantial Holding in APA Group

State Street Global Advisors, a prominent investment management firm, has reported a change in its substantial holding in APA Group. The announcement details the current voting power and relevant interests held by various entities under State Street’s management, indicating a strategic adjustment in their investment portfolio. This change may influence APA Group’s shareholder dynamics and could have implications for its governance and strategic decisions.

APA Group Director Increases Stake in Company

APA Group announced a change in the director’s interest notice, with Director David Lamont acquiring 14,593 ordinary stapled securities through Lamfam Investco Pty Ltd, increasing his indirect holdings to 55,000 securities. This acquisition, conducted through an on-market trade, reflects a significant personal investment by the director, potentially signaling confidence in the company’s future performance and stability.

APA Group Appoints New Director to Strengthen Leadership

APA Group has announced the appointment of Varya Davidson as a director effective March 1, 2025. Davidson holds 25,116 ordinary stapled securities through Jonnim Capital Pty Ltd, acting as a trustee for the Davidson Family Trust. This appointment is part of APA Group’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and stakeholder relations.