Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


COTERRA ENERGY INC

New York Stock Exchange, Inc. / Energy / Oil, Gas & Consumable Fuels

Fundamental Rating

7

CTRA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. While CTRA has a great health rating, its profitability is only average at the moment. CTRA is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, CTRA could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

CTRA had positive earnings in the past year.
In the past year CTRA had a positive cash flow from operations.
In the past 5 years CTRA has always been profitable.
CTRA had a positive operating cash flow in each of the past 5 years.
CTRA Yearly Net Income VS EBIT VS OCF VS FCFCTRA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

1.2 Ratios

CTRA has a Return On Assets (5.18%) which is in line with its industry peers.
CTRA has a Return On Equity (8.53%) which is comparable to the rest of the industry.
The Return On Invested Capital of CTRA (5.40%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CTRA is significantly below the industry average of 25.69%.
The last Return On Invested Capital (5.40%) for CTRA is well below the 3 year average (12.27%), which needs to be investigated, but indicates that CTRA had better years and this may not be a problem.
Industry RankSector Rank
ROA 5.18%
ROE 8.53%
ROIC 5.4%
ROA(3y)11.08%
ROA(5y)8.7%
ROE(3y)17.66%
ROE(5y)14.37%
ROIC(3y)12.27%
ROIC(5y)9.93%
CTRA Yearly ROA, ROE, ROICCTRA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

The Profit Margin of CTRA (20.52%) is better than 72.30% of its industry peers.
CTRA's Profit Margin has declined in the last couple of years.
CTRA has a Operating Margin (25.39%) which is in line with its industry peers.
CTRA's Operating Margin has declined in the last couple of years.
CTRA has a better Gross Margin (80.21%) than 89.67% of its industry peers.
CTRA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 25.39%
PM (TTM) 20.52%
GM 80.21%
OM growth 3Y-19.39%
OM growth 5Y-9.76%
PM growth 3Y-15.14%
PM growth 5Y-9.04%
GM growth 3Y1.7%
GM growth 5Y3.22%
CTRA Yearly Profit, Operating, Gross MarginsCTRA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CTRA is still creating some value.
The number of shares outstanding for CTRA has been reduced compared to 1 year ago.
The number of shares outstanding for CTRA has been increased compared to 5 years ago.
The debt/assets ratio for CTRA is higher compared to a year ago.
CTRA Yearly Shares OutstandingCTRA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
CTRA Yearly Total Debt VS Total AssetsCTRA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

CTRA has an Altman-Z score of 2.18. This is not the best score and indicates that CTRA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, CTRA is in the better half of the industry, outperforming 75.12% of the companies in the same industry.
CTRA has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as CTRA would need 3.46 years to pay back of all of its debts.
CTRA's Debt to FCF ratio of 3.46 is fine compared to the rest of the industry. CTRA outperforms 75.12% of its industry peers.
CTRA has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
CTRA has a Debt to Equity ratio of 0.27. This is in the better half of the industry: CTRA outperforms 65.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 3.46
Altman-Z 2.18
ROIC/WACC0.54
WACC10.02%
CTRA Yearly LT Debt VS Equity VS FCFCTRA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

CTRA has a Current Ratio of 2.92. This indicates that CTRA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.92, CTRA belongs to the best of the industry, outperforming 82.63% of the companies in the same industry.
CTRA has a Quick Ratio of 2.88. This indicates that CTRA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.88, CTRA belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.92
Quick Ratio 2.88
CTRA Yearly Current Assets VS Current LiabilitesCTRA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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6

3. Growth

3.1 Past

CTRA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.13%.
CTRA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.12% yearly.
The Revenue has decreased by -7.71% in the past year.
The Revenue has been growing by 21.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)3.13%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%56.86%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%32.87%

3.2 Future

Based on estimates for the next years, CTRA will show a very strong growth in Earnings Per Share. The EPS will grow by 29.57% on average per year.
CTRA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.07% yearly.
EPS Next Y77.79%
EPS Next 2Y41.24%
EPS Next 3Y30.09%
EPS Next 5Y29.57%
Revenue Next Year43.52%
Revenue Next 2Y23.61%
Revenue Next 3Y16.07%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
CTRA Yearly Revenue VS EstimatesCTRA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
CTRA Yearly EPS VS EstimatesCTRA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 2 4 6

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.68, which indicates a very decent valuation of CTRA.
61.03% of the companies in the same industry are more expensive than CTRA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.12, CTRA is valued rather cheaply.
The Price/Forward Earnings ratio is 6.86, which indicates a rather cheap valuation of CTRA.
77.93% of the companies in the same industry are more expensive than CTRA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CTRA to the average of the S&P500 Index (20.42), we can say CTRA is valued rather cheaply.
Industry RankSector Rank
PE 11.68
Fwd PE 6.86
CTRA Price Earnings VS Forward Price EarningsCTRA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CTRA is valued a bit cheaper than the industry average as 65.26% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTRA.
Industry RankSector Rank
P/FCF 17.25
EV/EBITDA 5.84
CTRA Per share dataCTRA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CTRA may justify a higher PE ratio.
A more expensive valuation may be justified as CTRA's earnings are expected to grow with 30.09% in the coming years.
PEG (NY)0.15
PEG (5Y)98.32
EPS Next 2Y41.24%
EPS Next 3Y30.09%

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6

5. Dividend

5.1 Amount

CTRA has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.32, CTRA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CTRA pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.75%

5.2 History

The dividend of CTRA is nicely growing with an annual growth rate of 18.85%!
CTRA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.85%
Div Incr Years0
Div Non Decr Years0
CTRA Yearly Dividends per shareCTRA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

CTRA pays out 55.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CTRA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.8%
EPS Next 2Y41.24%
EPS Next 3Y30.09%
CTRA Yearly Income VS Free CF VS DividendCTRA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B
CTRA Dividend Payout.CTRA Dividend Payout, showing the Payout Ratio.CTRA Dividend Payout.PayoutRetained Earnings

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