COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
NYSE:CTRA - US1270971039 - Common Stock
23.98 USD
-0.41 (-1.68%)
23.98 USD
0 (0%)
Taking everything into account, CTRA scores 6 out of 10 in our fundamental rating. CTRA was compared to 209 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. An interesting combination arises when we look at growth and value: CTRA is growing strongly while it also seems undervalued. 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.
Each year in the past 5 years CTRA has been profitable.
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 69.86% of its industry peers.
CTRA has a Return On Equity of 10.82%. This is in the better half of the industry: CTRA outperforms 63.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.30%, CTRA is in the better half of the industry, outperforming 64.59% 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 21.91%.
The 3 year average ROIC (12.27%) for CTRA is well above the current ROIC(7.30%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of CTRA (23.80%) is better than 78.95% 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 75.12% of its industry peers.
In the last couple of years the Operating Margin of CTRA has declined.
The Gross Margin of CTRA (82.52%) is better than 91.87% 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
CTRA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CTRA has less shares outstanding
Compared to 5 years ago, CTRA has more shares outstanding
CTRA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.14 indicates that CTRA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTRA (2.14) is better than 70.33% 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.
The Debt to FCF ratio of CTRA (2.83) is better than 77.99% of its industry peers.
CTRA has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
CTRA has a Debt to Equity ratio of 0.29. This is in the better half of the industry: CTRA outperforms 62.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.86
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.13 indicates that CTRA should not have too much problems paying its short term obligations.
CTRA has a Current ratio (1.13) which is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.08, CTRA is in line with its industry, outperforming 57.89% of the companies in the same 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.
The Earnings Per Share has been growing slightly by 0.12% on average over the past years.
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
Based on estimates for the next years, CTRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.42% on average per year.
Based on estimates for the next years, CTRA will show a quite strong growth in Revenue. The Revenue will grow by 16.73% on average per year.
EPS Next Y53.41%
EPS Next 2Y42.83%
EPS Next 3Y31.41%
EPS Next 5Y14.42%
Revenue Next Year40.11%
Revenue Next 2Y22.99%
Revenue Next 3Y16.73%
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 11.47.
CTRA's Price/Earnings ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 69.38% of the companies in the same industry.
CTRA is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.96, the valuation of CTRA can be described as very cheap.
Based on the Price/Forward Earnings ratio, CTRA is valued cheaper than 86.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, CTRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTRA indicates a somewhat cheap valuation: CTRA is cheaper than 70.81% of the companies listed in the same industry.
66.51% 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 | 12.36 | ||
| EV/EBITDA | 5.51 |
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 31.41% in the coming years.
PEG (NY)0.21
PEG (5Y)96.61
EPS Next 2Y42.83%
EPS Next 3Y31.41%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.57%.
Compared to an average industry Dividend Yield of 6.11, CTRA has a dividend in line with its industry peers.
CTRA's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
On average, the dividend of CTRA grows each year by 18.85%, which is quite nice.
CTRA has been paying a dividend for at least 10 years, so it has 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.
The dividend of CTRA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.69%
EPS Next 2Y42.83%
EPS Next 3Y31.41%
23.98
-0.41 (-1.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.39%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change-5.66%
Market Cap18.30B
Analysts81.94
Price Target33.88 (41.28%)
Short Float %3.5%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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)0.08%
PT rev (3m)-0.21%
EPS NQ rev (1m)-9.28%
EPS NQ rev (3m)-26.93%
EPS NY rev (1m)-7.69%
EPS NY rev (3m)-9.7%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)-5.44%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 6.96 | ||
| P/S | 2.76 | ||
| P/FCF | 12.36 | ||
| P/OCF | 5.29 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)2.09
EY8.72%
EPS(NY)3.45
Fwd EY14.38%
FCF(TTM)1.94
FCFY8.09%
OCF(TTM)4.54
OCFY18.91%
SpS8.68
BVpS19.08
TBVpS19.08
PEG (NY)0.21
PEG (5Y)96.61
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 | 2.14 |
F-Score7
WACC8.51%
ROIC/WACC0.86
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 Y53.41%
EPS Next 2Y42.83%
EPS Next 3Y31.41%
EPS Next 5Y14.42%
Revenue 1Y (TTM)17.1%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%54.6%
Revenue Next Year40.11%
Revenue Next 2Y22.99%
Revenue Next 3Y16.73%
Revenue Next 5YN/A
EBIT growth 1Y19.58%
EBIT growth 3Y-6.06%
EBIT growth 5Y9.59%
EBIT Next Year239.19%
EBIT Next 3Y58.57%
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%