COTERRA ENERGY INC (NYSE:CTRA) Emerges as a Top Value Stock with Strong Fundamentals

The search for undervalued companies with strong basic foundations remains a central part of value investing, a strategy created by Benjamin Graham and later improved by Warren Buffett. This method focuses on finding securities trading for less than their real worth while keeping financial wellness, earnings, and expansion possibility. By joining numerical measures with non-numerical evaluation, investors try to build positions in companies that the market has incorrectly priced for now, offering a safety buffer and possibility for long-term gain.

COTERRA ENERGY INC (NYSE:CTRA) appears as a noteworthy candidate through this review lens. The company's basic profile, as detailed in its full analysis report, shows several traits that value investors usually look for.

Valuation Metrics Show Appealing Prices The most noticeable part of Coterra's profile is its valuation score of 8 out of 10, much higher than the level wanted by value investors. The company trades at a Price/Earnings ratio of 11.69, much lower than both the industry average of 23.51 and the S&P 500 average of 27.08. This price difference becomes even more clear when looking at future-focused metrics, with a Price/Forward Earnings ratio of 7.09 that places it less expensive than 87% of industry peers. These valuation numbers indicate the market may be pricing Coterra's earnings ability too low, creating the needed difference between market price and real value that value investors look for.

Profitability Supports Business Quality Even while working in the changing energy sector, Coterra keeps good profitability with a score of 7 out of 10. The company shows a profit margin of 23.80%, doing better than 77.88% of industry competitors, while its operating margin of 31.25% is higher than 74.04% of peers. These margins are especially important for value investors as they show operational effectiveness and pricing strength, key parts in keeping competitive benefits. The company's return measures, including Return on Assets of 6.57% and Return on Equity of 10.82%, both place Coterra in the top half of its industry, hinting at good capital use.

Growth Path Backs Future Gain Coterra's growth rating of 7 out of 10 shows both past performance and future outlooks. Revenue has increased by 17.10% over the past year, with a five-year average growth rate of 21.44% each year. More importantly, experts predict earnings per share growth of 14.42% and revenue growth of 16.73% each year moving ahead. For value investors, this growth part is key as it gives the reason for closing the valuation gap, companies priced below real value with expansion possibility are more likely to see their market prices move toward real value over time.

Financial Wellness Offers Steadiness With a health rating of 5 out of 10, Coterra keeps acceptable financial steadiness even with some points to watch. The company's debt-to-equity ratio of 0.29 shows average borrowing, doing better than 63.94% of industry peers. Its debt-to-free-cash-flow ratio of 2.83 suggests the company could pay off all debt in under three years from operating cash flows, giving strength during industry low periods. While current and quick ratios near 1.1 show enough short-term cash availability, value investors would watch these measures carefully given the capital-heavy nature of the energy sector.

The mix of these factors, appealing valuation, good profitability, firm growth outlooks, and acceptable financial wellness, places Coterra as a noteworthy candidate for value-focused portfolios. The company's spread-out work across the Permian Basin, Marcellus Shale, and Anadarko Basin gives location variety, while its focus on both oil and natural gas production offers some product price risk reduction.

For investors looking for similar chances, more screening results can be found through our Decent Value Stocks screening tool, which finds companies meeting these basic standards across different sectors and market sizes.

Disclaimer: This analysis is given for information reasons only and should not be seen as investment guidance or a suggestion to buy or sell any security. Investors should do their own research and talk with a qualified financial advisor before making investment choices.