APA FCF Yield Analysis
Higher than 100% of Energy sector peers
Updated 3005h ago·SEC filings & market data
Key Takeaway
With a Free Cash Flow (FCF) Yield of 20.3%, APA Corporation generates $0.203 of free cash (cash from operations minus capital spending) for every $1 of its stock price — a high return for investors compared to the sector median of 6.1%.
Sector Performance
100th percentileAPA
20.3%
Sector Median
3.5%
Sector Avg
-60.8%
Deep Analysis
With a Free Cash Flow (FCF) Yield of 20.3%, APA Corporation generates $0.203 of free cash (cash from operations minus capital spending) for every $1 of its stock price — a high return for investors compared to the sector median of 6.1%.
Among energy peers, APA ranks at the 91st percentile, meaning only 9% of companies in its sector offer a higher yield. Trend data for this metric is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, so no directional clue exists. The combination of an exceptionally high current yield with no trend history implies that investors are getting a strong cash-flow return right now, but cannot assess whether this level is improving or deteriorating — creating uncertainty despite the attractive entry point. This metric directly contradicts the overall CAUTIOUS verdict, because a top-decile FCF Yield typically signals a stock priced cheaply relative to its cash generation, which is a positive risk/reward signal.
Frequently Asked Questions
What does the FCF Yield tell investors about APA?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does APA's FCF Yield compare to its sector?
APA's FCF Yield of 20.3% compares to a Energy sector median of 3.5%, placing it in the 100th percentile.
Who are APA's closest peers by FCF Yield?
The closest Energy peers by FCF Yield include: XOM (3.5%), DEN (2.7%), ARRY (5.7%), PXD (7.4%), AR (11.6%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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20.3%
Sector Median
3.5%
Sector Avg
-60.8%
How APA's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.