I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.
| Company name | Apache Corporation |
| Stock ticker | APA |
| Live stock price | [stckqut]APA[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $129.9 |
| Target stock price (averages with growth) | $110.61 |
| Target stock price (averages with no growth) | $67.51 |
| Target stock price (manual assumptions) | $96.37 |
The following company description is from Google Finance: http://www.google.com/finance?q=apa
Apache Corporation (Apache) is an independent energy company, which explores for, develops, and produces natural gas, crude oil, and natural gas liquids. As of December 31, 2011, Apache had exploration and production interests in six countries: the United States, Canada, Egypt, Australia, offshore the United Kingdom in the North Sea, and Argentina. During the year ended December 31, 2011, it participated in drilling 1,087 gross wells, with 1,005 completed as producers. As of December 31, 2011, in addition to its completed wells, several wells had not reached completion: 39 in the United States (28.44 net); 50 in Canada (42.69 net); 23 in Egypt (21.75 net); six in the North Sea (4.91 net); one in Australia (0.33 net), and three in Argentina (3.00 net). In March 2014, the Company sold of its Argentina operations and properties to YPF Sociedad Anonima.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Apache Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. Even though Apache is only a fair company, I am going to keep the company on my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $84.16
Growth: 0.13
Current EPS (TTM): $5.47
P/E: 15.4
Future EPS Calc: $10.07
Future Stock Price Calc: $155.2
Target stock price: $96.36
I hope that this makes you a better investor. [/s2If]