COTERRA ENERGY INC (CTRA)

US1270971039 - Common Stock

25.92  -0.06 (-0.23%)

After market: 25.88 -0.04 (-0.15%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CTRA. CTRA was compared to 215 industry peers in the Oil, Gas & Consumable Fuels industry. CTRA has an excellent profitability rating, but there are some minor concerns on its financial health. CTRA has a valuation in line with the averages, but it does not seem to be growing.



7

1. Profitability

1.1 Basic Checks

In the past year CTRA was profitable.
CTRA had a positive operating cash flow in the past year.
Of the past 5 years CTRA 4 years were profitable.
CTRA had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of CTRA (11.12%) is better than 61.68% of its industry peers.
CTRA has a Return On Equity of 17.47%. This is comparable to the rest of the industry: CTRA outperforms 50.47% of its industry peers.
CTRA's Return On Invested Capital of 12.15% is in line compared to the rest of the industry. CTRA outperforms 58.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTRA is significantly below the industry average of 54.96%.
The last Return On Invested Capital (12.15%) for CTRA is above the 3 year average (11.41%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.12%
ROE 17.47%
ROIC 12.15%
ROA(3y)10.13%
ROA(5y)11.77%
ROE(3y)16.96%
ROE(5y)21.85%
ROIC(3y)11.41%
ROIC(5y)13.26%

1.3 Margins

With a decent Profit Margin value of 33.87%, CTRA is doing good in the industry, outperforming 72.90% of the companies in the same industry.
In the last couple of years the Profit Margin of CTRA has grown nicely.
CTRA has a Operating Margin of 43.65%. This is in the better half of the industry: CTRA outperforms 76.64% of its industry peers.
In the last couple of years the Operating Margin of CTRA has grown nicely.
CTRA has a better Gross Margin (83.92%) than 90.65% of its industry peers.
CTRA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 43.65%
PM (TTM) 33.87%
GM 83.92%
OM growth 3Y11.19%
OM growth 5Y18.33%
PM growth 3Y10.79%
PM growth 5Y51.1%
GM growth 3Y8.91%
GM growth 5Y6.02%

6

2. Health

2.1 Basic Checks

CTRA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CTRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 2.76 indicates that CTRA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.76, CTRA is doing good in the industry, outperforming 72.43% of the companies in the same industry.
CTRA has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.97, CTRA belongs to the top of the industry, outperforming 83.18% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that CTRA is not too dependend on debt financing.
CTRA's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. CTRA outperforms 77.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.97
Altman-Z 2.76
ROIC/WACC1.47
WACC8.24%

2.3 Liquidity

A Current Ratio of 1.04 indicates that CTRA should not have too much problems paying its short term obligations.
CTRA has a Current ratio (1.04) which is in line with its industry peers.
CTRA has a Quick Ratio of 1.01. This is a normal value and indicates that CTRA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, CTRA is in line with its industry, outperforming 52.80% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.01

3

3. Growth

3.1 Past

CTRA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.66%.
CTRA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 56.28% yearly.
The Revenue for CTRA has decreased by -26.65% in the past year. This is quite bad
Measured over the past years, CTRA shows a very strong growth in Revenue. The Revenue has been growing by 38.68% on average per year.
EPS 1Y (TTM)-36.66%
EPS 3Y43.26%
EPS 5Y56.28%
EPS growth Q2Q-64.79%
Revenue 1Y (TTM)-26.65%
Revenue growth 3Y63.62%
Revenue growth 5Y38.68%
Revenue growth Q2Q-46.19%

3.2 Future

CTRA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.67% yearly.
The Revenue is expected to decrease by -7.45% on average over the next years.
EPS Next Y-52.27%
EPS Next 2Y-31.62%
EPS Next 3Y-12.63%
EPS Next 5Y-7.67%
Revenue Next Year-33.82%
Revenue Next 2Y-17.04%
Revenue Next 3Y-7.45%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.88, the valuation of CTRA can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as CTRA.
Compared to an average S&P500 Price/Earnings ratio of 25.81, CTRA is valued rather cheaply.
The Price/Forward Earnings ratio is 11.22, which indicates a very decent valuation of CTRA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTRA is on the same level as its industry peers.
CTRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.88
Fwd PE 11.22

4.2 Price Multiples

CTRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 62.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTRA indicates a somewhat cheap valuation: CTRA is cheaper than 69.16% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.67
EV/EBITDA 4.64

4.3 Compensation for Growth

The decent profitability rating of CTRA may justify a higher PE ratio.
CTRA's earnings are expected to decrease with -12.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-31.62%
EPS Next 3Y-12.63%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.08%, CTRA has a reasonable but not impressive dividend return.
CTRA's Dividend Yield is comparable with the industry average which is at 6.36.
CTRA's Dividend Yield is a higher than the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 3.08%

5.2 History

On average, the dividend of CTRA grows each year by 92.33%, which is quite nice.
CTRA has been paying a dividend for over 5 years, so it has already some track record.
CTRA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)92.33%
Div Incr Years4
Div Non Decr Years4

5.3 Sustainability

56.91% of the earnings are spent on dividend by CTRA. This is a bit on the high side, but may be sustainable.
The Dividend Rate of CTRA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP56.91%
EPS Next 2Y-31.62%
EPS Next 3Y-12.63%

COTERRA ENERGY INC

NYSE:CTRA (2/26/2024, 7:26:34 PM)

After market: 25.88 -0.04 (-0.15%)

25.92

-0.06 (-0.23%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.50B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.08%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.88
Fwd PE 11.22
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.16
Profitability
Industry RankSector Rank
ROA 11.12%
ROE 17.47%
ROCE
ROIC
ROICexc
ROICexgc
OM 43.65%
PM (TTM) 33.87%
GM 83.92%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.04
Quick Ratio 1.01
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-36.66%
EPS 3Y43.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y-52.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.65%
Revenue growth 3Y63.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y