NYSE:APC
$63.96
(2/9 12:34PM)
+2.6%
| Open | $63.03 |
Mkt Cap | $30.6 Billion |
| High | $64.34 |
52Wk High | $69.37 |
| Low | $62.6 |
52Wk Low | $30.88 |
| Volume | 2.1 Million |
Avg Vol 10D | 4.7 Million |
Ockham's Rating/Recommendation Summary
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APC Revenue
As a value investing shop, we are interested in seeing how APC's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 2.54x and the low end of the range at 1.40x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for APC of 3.77x is high enough compared with historical norms of APC to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 91% merely to return APC to its historical average.
APC Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of APC, Ockham views their current Cash Earnings as significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for APC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 6.33 and a 3.34 low over the same period.
Therefore, at the current price of $62.95 and a Price to Cash Earnings ratio of 8.04, APC is significantly overvalued. This diminishes the attractiveness of APC until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 66% is needed just to return to the historical cash earnings multiple.
APC Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In APC’s case, the estimated annual dividend is $0.36 resulting in a current dividend yield of 0.57%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from APC against the historic high and low levels over the past 10 years. The highest dividend yield from APC over this period was 1.48% while the lowest dividend yield was 0.30% While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as APC that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 35.96% below the median yield.
Anadarko Petroleum Corporation EPS: A Hot Topic on Seeking Alpha Wall St Breakfast
APC's earnings per share was discussed on Seeking Alpha Wall St Breakfast which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
The Motley Fool CAPS data suggests that investors believe Anadarko Petroleum Corporation will beat the market in the foreseeable future. At Ockham, we are not advising buying Anadarko Petroleum Corporation at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, APC has been less covered in the news compared to the rest of our universe of stocks.
“… (PR) Earnings: Monday After Close ANADARKO (APC): Q4 EPS of $0. 04 beats by $0. 01. Revenue of $2. 4B (-17%) in-line. Shares -0. 46% AH. …”
News on APC From the Pundits on Closing Bell
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on APC from Closing Bell.
The Motley Fool CAPS data suggests that investors believe Anadarko Petroleum Corporation will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, APC has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Anadarko Petroleum Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… happening, matt? >> we're tracking shares of ANADARKO PETROLEUM. The stock is a little bit softer. The company came out with their …”
America's Nightly Scoreboard Has the Latest News on APC
The latest news on America's Nightly Scoreboard in regards to APC came through on RazorWire recently.
As of this week's report, we have an Overvalued valuation on APC because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Anadarko Petroleum Corporation has actually sunk a bit in comparison to the others.
“… Him our caand views on things we think are natural stimulants to the economy that don't require any kind of stimulus funding like natural gas industry inhe case oa company, like ... …”
A Discussion of APC's CEO Occurred on Mad Money
Ockham is always interested to know what the Chief Executive is doing for their company, and we noticed a mention of APC's CEO on Mad Money.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; APC has received less coverage from the financial media in business television and blogs.
“… Hackett on from ANADARKO and mr. Mcclendon on from chesapeake and they admit they thought this was such an easy cause they didn't have to put money behind it. …”
Mad Money Has the Latest News on APC
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Anadarko Petroleum Corporation.
We noticed recently that in comparison to all other stocks we analyze in the news; APC has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS data suggests that investors believe Anadarko Petroleum Corporation will beat the market in the foreseeable future. At Ockham, we are not advising buying Anadarko Petroleum Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… And the performance of the stocks, chesapeake, devin, apache, ANADARKO, range, over the last 20 years downright spectacular. Natural gas is simply better. …”
APC News Mentioned on Mad Money Recently
The latest news from Mad Money on APC is available through Ockham's news analytics platform RazorWire.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Anadarko Petroleum Corporation has been talked about more than normal recently. At Ockham, we are not advising buying Anadarko Petroleum Corporation at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe Anadarko Petroleum Corporation will beat the market in the foreseeable future.
“… And ANADARKO. The french oil joint has come out in favor of natural gas for their acquisitions. Cash speaks louder than words. The group can go still higher. …”
News Breaking on Anadarko Petroleum Corporation on Mad Money
The latest news on Mad Money in regards to APC came through on RazorWire recently.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; APC has received less coverage from the financial media in business television and blogs.
“… You buy chesapeake, you buy an ANADARKO. Does it have any relevance at all to where natural gas is? Just sell that thing. We like the core business. …”
Cash flows and Anadarko Petroleum Corporation Mentioned on Mad Money
Cash flow is a basic fundamental that investors must understand, and Mad Money discussed the most recent developments in APC's cash flow.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; APC has received less coverage from the financial media in business television and blogs.
“… you have to look at the cash I talk about that in jim cramer's" getting back to even quoix the case of ANADARKO PETROLEUM. He got a ton of debt but he's making a ton of money. …”
News Breaking on Anadarko Petroleum Corporation on Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on APC from Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, APC has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Anadarko Petroleum Corporation will beat the market in the foreseeable future. Check the news on this stock because there is a catalyst that has allowed this stock to advance 7.44% today. At Ockham, we are not advising buying Anadarko Petroleum Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… Chesapeake's stake in the shale should be worth much more than barnette and ANADARKO's there although they're more eastern than I thought. …”
See Why Anadarko Petroleum Corporation News Was Discussed on Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on APC from Mad Money.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of APC, it is getting significantly more attention in recent news coverage than we are used to seeing. The latest news on APC has created quite a stir as the stock is trading $4.52 higher in today's session.
“… And the last year ANADARKO gained 61. 9%, I give you all that because I want you to know why I believe those strong numbers do not lie. Performance does it. …”