COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
USA - NYSE:CTRA - US1270971039 - Common Stock
22.8 USD
+0.22 (+0.97%)
22.8 USD
0 (0%)
CTRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While CTRA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CTRA is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, CTRA could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
In the past year CTRA was profitable.
In the past year CTRA had a positive cash flow from operations.
CTRA had positive earnings in each of the past 5 years.
CTRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CTRA (6.57%) is better than 73.46% of its industry peers.
CTRA's Return On Equity of 10.82% is fine compared to the rest of the industry. CTRA outperforms 63.98% of its industry peers.
With a decent Return On Invested Capital value of 7.30%, CTRA is doing good in the industry, outperforming 65.88% of the companies in the same industry.
CTRA had an Average Return On Invested Capital over the past 3 years of 12.27%. This is significantly below the industry average of 21.53%.
The last Return On Invested Capital (7.30%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 10.82% | ||
| ROIC | 7.3% |
ROA(3y)11.08%
ROA(5y)8.7%
ROE(3y)17.66%
ROE(5y)14.37%
ROIC(3y)12.27%
ROIC(5y)9.93%
1.3 Margins
CTRA has a better Profit Margin (23.80%) than 79.15% of its industry peers.
CTRA's Profit Margin has declined in the last couple of years.
CTRA's Operating Margin of 31.25% is fine compared to the rest of the industry. CTRA outperforms 75.83% of its industry peers.
CTRA's Operating Margin has declined in the last couple of years.
CTRA's Gross Margin of 82.52% is amongst the best of the industry. CTRA outperforms 91.94% of its industry peers.
In the last couple of years the Gross Margin of CTRA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.25% | ||
| PM (TTM) | 23.8% | ||
| GM | 82.52% |
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%
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.
CTRA has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 2.05 indicates that CTRA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTRA has a Altman-Z score of 2.05. This is in the better half of the industry: CTRA outperforms 66.82% of its industry peers.
CTRA has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as CTRA would need 2.83 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.83, CTRA is doing good in the industry, outperforming 77.73% of the companies in the same industry.
CTRA has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
CTRA's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. CTRA outperforms 62.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.91
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.13 indicates that CTRA should not have too much problems paying its short term obligations.
CTRA's Current ratio of 1.13 is in line compared to the rest of the industry. CTRA outperforms 47.87% of its industry peers.
CTRA has a Quick Ratio of 1.08. This is a normal value and indicates that CTRA is financially healthy and should not expect problems in meeting its short term obligations.
CTRA has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
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 grown by 17.10% in the past year. This is quite good.
CTRA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.44% yearly.
EPS 1Y (TTM)10%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%29.73%
Revenue 1Y (TTM)17.1%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%54.6%
3.2 Future
CTRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.42% yearly.
The Revenue is expected to grow by 16.63% on average over the next years. This is quite good.
EPS Next Y51.91%
EPS Next 2Y42.46%
EPS Next 3Y29.11%
EPS Next 5Y14.42%
Revenue Next Year40.56%
Revenue Next 2Y23.17%
Revenue Next 3Y16.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
CTRA is valuated reasonably with a Price/Earnings ratio of 10.91.
CTRA's Price/Earnings ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 70.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of CTRA to the average of the S&P500 Index (27.40), we can say CTRA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.65, the valuation of CTRA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTRA indicates a rather cheap valuation: CTRA is cheaper than 88.15% of the companies listed in the same industry.
CTRA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
72.51% of the companies in the same industry are more expensive than CTRA, based on the Enterprise Value to EBITDA ratio.
69.19% of the companies in the same industry are more expensive than CTRA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 5.17 |
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 29.11% in the coming years.
PEG (NY)0.21
PEG (5Y)91.85
EPS Next 2Y42.46%
EPS Next 3Y29.11%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.68%.
Compared to an average industry Dividend Yield of 6.15, CTRA has a dividend in line with its industry peers.
CTRA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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
5.3 Sustainability
41.69% of the earnings are spent on dividend by CTRA. This is a bit on the high side, but may be sustainable.
CTRA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.69%
EPS Next 2Y42.46%
EPS Next 3Y29.11%
22.8
+0.22 (+0.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.45%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change-1.63%
Market Cap17.40B
Analysts81.94
Price Target33.62 (47.46%)
Short Float %4.05%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend0.84
Dividend Growth(5Y)18.85%
DP41.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.37%
Min EPS beat(2)-1.36%
Max EPS beat(2)4.09%
EPS beat(4)2
Avg EPS beat(4)1.6%
Min EPS beat(4)-7.3%
Max EPS beat(4)10.97%
EPS beat(8)4
Avg EPS beat(8)2.93%
EPS beat(12)8
Avg EPS beat(12)5.11%
EPS beat(16)10
Avg EPS beat(16)2.06%
Revenue beat(2)1
Avg Revenue beat(2)3.87%
Min Revenue beat(2)-5.32%
Max Revenue beat(2)13.06%
Revenue beat(4)3
Avg Revenue beat(4)2.74%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)13.06%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)8
Avg Revenue beat(12)1.3%
Revenue beat(16)10
Avg Revenue beat(16)0.7%
PT rev (1m)-0.75%
PT rev (3m)-0.05%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-18.86%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-7.79%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 6.65 | ||
| P/S | 2.63 | ||
| P/FCF | 11.76 | ||
| P/OCF | 5.03 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)2.09
EY9.17%
EPS(NY)3.43
Fwd EY15.04%
FCF(TTM)1.94
FCFY8.51%
OCF(TTM)4.54
OCFY19.89%
SpS8.68
BVpS19.08
TBVpS19.08
PEG (NY)0.21
PEG (5Y)91.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 10.82% | ||
| ROCE | 9.15% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.37% | ||
| ROICexgc | 7.37% | ||
| OM | 31.25% | ||
| PM (TTM) | 23.8% | ||
| GM | 82.52% | ||
| FCFM | 22.35% |
ROA(3y)11.08%
ROA(5y)8.7%
ROE(3y)17.66%
ROE(5y)14.37%
ROIC(3y)12.27%
ROIC(5y)9.93%
ROICexc(3y)12.9%
ROICexc(5y)10.44%
ROICexgc(3y)12.9%
ROICexgc(5y)10.44%
ROCE(3y)15.36%
ROCE(5y)12.44%
ROICexcg growth 3Y-7.45%
ROICexcg growth 5Y-19.44%
ROICexc growth 3Y-7.45%
ROICexc growth 5Y-19.44%
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%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 97.39% | ||
| Cap/Sales | 29.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.33% | ||
| Profit Quality | 93.91% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.05 |
F-Score7
WACC8.04%
ROIC/WACC0.91
Cap/Depr(3y)110.23%
Cap/Depr(5y)116.61%
Cap/Sales(3y)28.94%
Cap/Sales(5y)29.44%
Profit Quality(3y)93.33%
Profit Quality(5y)92.4%
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%29.73%
EPS Next Y51.91%
EPS Next 2Y42.46%
EPS Next 3Y29.11%
EPS Next 5Y14.42%
Revenue 1Y (TTM)17.1%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%54.6%
Revenue Next Year40.56%
Revenue Next 2Y23.17%
Revenue Next 3Y16.63%
Revenue Next 5YN/A
EBIT growth 1Y19.58%
EBIT growth 3Y-6.06%
EBIT growth 5Y9.59%
EBIT Next Year238.86%
EBIT Next 3Y58.26%
EBIT Next 5Y31.69%
FCF growth 1Y-55.81%
FCF growth 3Y2.93%
FCF growth 5Y9.27%
OCF growth 1Y-35.85%
OCF growth 3Y18.8%
OCF growth 5Y14.09%