APA Group (APA) AI Stock Analysis

• Market Cap: $10.85B
• Dividend Yield: 6.83%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.39
• Revenue Growth: 8.15%
• EPS Growth: -103.96%
• Country: AU
• Employees: 2,700
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Gas
• EPS (TTM): 0.03
• Shares Outstanding: 1,304,487,500
• 10 Day Avg. Volume: 2,223,522
• 30 Day Avg. Volume: 2,765,710
• PEG Ratio: 2.23
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.19
• 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: $8.30
• Price Target Upside: -0.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: AU$9.50 ▲(13.77%Upside)

APA Group displays strong financial performance with solid revenue and profit growth. However, high leverage and inconsistent cash flow present financial risks. Technical analysis shows positive momentum but warns of potential overbought conditions. Valuation is impacted by a negative P/E ratio, though the dividend yield remains attractive.

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 the transportation and storage of natural gas, with long-term contracts that provide stable income streams. The company charges fees for the use of its pipeline infrastructure to transport natural gas from producers to distributors and end-users. Additionally, APA earns money from its investments in renewable energy projects and electricity transmission, which are supported by government incentives and power purchase agreements. The company's earnings are further bolstered by strategic partnerships and joint ventures that expand its infrastructure portfolio and enhance service offerings.

APA Group Financial Statement Overview

Summary

APA Group exhibits strong revenue and profit growth, supported by efficient operations and cost management. While profitability metrics are solid, the company's high leverage indicates potential financial risks. Cash flow generation is stable but 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.03B	2.83B	2.69B	2.56B	2.56B
Gross Profit	2.81B	947.00M	911.02M	923.86M	2.37B
EBITDA	2.62B	1.70B	1.66B	1.36B	1.65B
Net Income	978.00M	263.00M	230.56M	-42.17M	317.11M
Balance Sheet
Total Assets	19.56B	16.52B	16.20B	15.12B	16.54B
Cash, Cash Equivalents and Short-Term Investments	676.00M	513.00M	940.28M	663.04M	1.17B
Total Debt	12.99B	11.59B	10.96B	9.99B	10.99B
Total Liabilities	16.32B	14.61B	13.57B	12.17B	13.32B
Stockholders Equity	3.25B	1.91B	2.63B	2.95B	3.21B
Cash Flow
Free Cash Flow	60.00M	26.00M	508.22M	618.03M	668.62M
Operating Cash Flow	1.16B	1.21B	1.20B	1.05B	1.09B
Investing Cash Flow	-2.66B	-969.00M	-1.27B	-432.02M	-296.14M
Financing Cash Flow	1.66B	-664.00M	360.66M	-1.14B	26.38M

APA Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.35
• 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 8.35 is above the 20-day moving average (MA) of 8.31, above the 50-day MA of 8.16, and above the 200-day MA of 7.29, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 67.03 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
LPE	70 Neutral	AU$20.95M	6.28	30.50%	―	15.59%	―
Sector *	67 Neutral	$16.88B	17.11	4.48%	3.27%	4.75%	6.12%
APA	62 Neutral	$10.85B	8.55	-1.44%	6.83%	8.15%	-103.96%
AGLNF	―	$4.33B	27.84	4.36%	0.86%	―	―

APA Group Corporate Events

APA Group Updates Dividend Distribution Details

APA Group has announced an update to its previous notification regarding the dividend distribution for its fully paid units stapled securities. The update involves changes to the New Zealand Dollar exchange rate and the Dividend Reinvestment Plan share price. This announcement pertains to the dividend distribution for the six-month period ending June 30, 2025, and reflects the company’s ongoing commitment to providing returns to its stakeholders while maintaining transparency in its financial communications.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group to Announce Full-Year 2025 Results

APA Group announced it will release its full-year results for the fiscal year ending June 30, 2025, on August 20, 2025. A briefing for analysts and investors will be conducted by the company’s CEO and CFO, providing insights into the company’s performance and future outlook. This announcement is significant as it provides stakeholders with the opportunity to gain a deeper understanding of APA’s financial health and strategic direction.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Finalizes Gas Pipeline Agreement with CS Energy

APA Group has finalized agreements with CS Energy to develop a natural gas pipeline connecting APA’s Roma Brisbane Pipeline with CS Energy’s proposed Brigalow Peaking Power Plant in Queensland. This project, estimated to cost at least $150 million, aims to provide firming capacity for peak electricity demand and support energy transition efforts. The pipeline, expected to be completed by mid-2027, will be owned and operated by APA under a 35-year agreement, highlighting the company’s strategic focus on leveraging its existing gas transmission network for growth and energy security.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Issues Unquoted Performance Rights to Employees

APA Group has announced the issuance of 16,809 performance rights under an employee incentive scheme, which are unquoted securities not intended for trading on the ASX. This move is part of the company’s strategy to incentivize and retain key employees, potentially impacting its operational efficiency and market competitiveness.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Secures Regulatory Approval for Basslink Conversion

The Australian Energy Regulator has approved APA Group’s application to convert Basslink into a regulated Transmission Network Service Provider, effective July 2026. This decision, reversing a previous draft decision, follows an agreement with the Tasmanian Government and aims to provide stability and sustainability for energy consumers in Tasmania and Victoria. The move is expected to enhance energy security and price stability, benefiting households and businesses in the region.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Extends $1.75 Billion Loan Maturities

APA Group has successfully completed the amendment and extension of $1.75 billion in syndicated loans, extending maturities to July 2031 and July 2032 without issuing new debt. This strategic move, achieved at marginally lower pricing, reflects APA’s proactive capital management and positions the company well for future refinancing, with no debt maturities until March 2027.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Completes Strategic Pipeline Acquisition to Boost Gas Infrastructure

APA Group has completed the acquisition of ARC Pipeline Pty Ltd, which owns the Atlas to Reedy Creek Pipeline, enhancing its East Coast Gas Grid. This acquisition aligns with APA’s strategy to focus on core gas transmission and storage infrastructure, and it is expected to be immediately cash flow and value accretive, contributing significantly to future EBITDA. The deal also includes a long-term gas transportation agreement with Senex Assets Pty Ltd, positioning APA to capitalize on future production growth opportunities and support domestic gas availability.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Announces Increased Final Distribution and Discounted Reinvestment Plan

APA Group announced an estimated final distribution of 30.0 cents per security for the six months ending 30 June 2025, marking a 1.7% increase from the previous year’s final distribution. This brings the total distributions for the 2025 financial year to 57.0 cents per security, aligning with the company’s guidance. The Distribution Reinvestment Plan (DRP) will be available with a 1.5% discount, allowing securityholders to reinvest their distributions into additional APA securities. This announcement reflects APA’s stable financial performance and commitment to providing value to its stakeholders.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.

APA Group Declares AUD 0.30 Distribution for Stapled Securities

APA Group has announced a distribution of AUD 0.30 per fully paid unit stapled security, with an ex-date of June 27, 2025, and a payment date set for September 10, 2025. This announcement reflects APA Group’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the energy infrastructure market.

The most recent analyst rating on (AU:APA) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on APA Group stock, see the AU:APA Stock Forecast page.