Anadarko Petroleum Stock Analysis, Valuation (NYSE:APC)

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$70.33 $0.19 (0.27%) APC stock closing price May 23, 2018 (Closing)
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Anadarko Petroleum
Updated on : May 23, 2018
previous close
APC 70.3 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US exploration and production
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-4.2%
Operating Profit
Operating Margin:
-0.1%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
16.4B
Debt/Equity Ratio:
 1.4
Compared to the industry
Cash Flow
Operating cash flow:
$1.43B
Net Income:
$121M
Dividend Yield
APC dividend yield:
0.57%
PROS      CONS
Cash Flow
FCF Margin
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
APC PS :
3.3
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
0%
Return on Equity:
-0.1%
Free Cash Flow Margin:
8.3%
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Anadarko Petroleum Stock Analysis

5 2

Watch the robo advisor video of Anadarko Petroleum stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for APC stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Anadarko Petroleum Corporation Stock Rating 2.6/5

Amigobulls APC stock analysis uses latest quarter 2018 Q1 financial data like Anadarko Petroleum revenue growth, profit margins and cash flows. Anadarko Petroleum valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Anadarko Petroleum stock rating is our opinion about the business fundamentals of the company.

Should you buy APC stock?

  • The operating cash flow looks good at 11.8 times the net income.
  • Anadarko Petroleum has a healthy FCF (Free Cash Flow) margin of 8.3%.

Should you sell APC stock?

  • Sales declined by -4.2% annually over the last 5 years.
  • Anadarko Petroleum registered a negative operating margin of -0.1% (average) over the Trailing Twelve Months (TTM).
  • Anadarko Petroleum posted an average Net loss of -0.2% in the last twelve months.
  • Anadarko Petroleum is debt laden and has a high debt/equity ratio of  1.4.
  • The company does not have profits. Hence the PE ratio is meaningless for APC stock.
  • The company is trading at a price to sales multiple of 3.3, which is overvalued in comparison to the Oil and Gas-US exploration and production industry average multiple of 1.7.
  • Anadarko Petroleum has a negative return on equity of -0.1%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Anadarko Petroleum stock

Amigobulls Anadarko Petroleum stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of APC stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Anadarko Petroleum revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about APC stock.