COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
NYSE:CTRA - New York Stock Exchange, Inc. - US1270971039 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to CTRA. CTRA was compared to 208 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 This makes CTRA very considerable for value and growth investing!
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.
Each year in the past 5 years CTRA has been profitable.
In the past 5 years CTRA always reported a positive cash flow from operatings.
1.2 Ratios
CTRA's Return On Assets of 6.57% is fine compared to the rest of the industry. CTRA outperforms 68.75% of its industry peers.
With a decent Return On Equity value of 10.82%, CTRA is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Return On Invested Capital of CTRA (7.30%) is better than 62.98% of its industry peers.
CTRA had an Average Return On Invested Capital over the past 3 years of 12.27%. This is significantly below the industry average of 23.51%.
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
CTRA's Profit Margin of 23.80% is fine compared to the rest of the industry. CTRA outperforms 75.96% of its industry peers.
In the last couple of years the Profit Margin of CTRA has declined.
CTRA has a better Operating Margin (31.25%) than 72.60% of its industry peers.
CTRA's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 82.52%, CTRA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTRA is creating some value.
CTRA has less shares outstanding than it did 1 year ago.
CTRA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CTRA is higher compared to a year ago.
2.2 Solvency
CTRA has an Altman-Z score of 2.12. 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.
CTRA has a Altman-Z score of 2.12. This is in the better half of the industry: CTRA outperforms 70.67% of its industry peers.
The Debt to FCF ratio of CTRA is 2.83, which is a good value as it means it would take CTRA, 2.83 years of fcf income to pay off all of its debts.
CTRA has a better Debt to FCF ratio (2.83) than 76.92% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that CTRA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, CTRA is in the better half of the industry, outperforming 64.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.85
WACC8.55%
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 of 1.13. This is comparable to the rest of the industry: CTRA outperforms 47.60% of its industry peers.
A Quick Ratio of 1.08 indicates that CTRA should not have too much problems paying its short term obligations.
CTRA's Quick ratio of 1.08 is in line compared to the rest of the industry. CTRA outperforms 57.21% of its industry peers.
| 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.
CTRA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.10%.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.70% yearly.
The Revenue is expected to grow by 16.25% on average over the next years. This is quite good.
EPS Next Y66.18%
EPS Next 2Y37.22%
EPS Next 3Y28.64%
EPS Next 5Y25.7%
Revenue Next Year39.27%
Revenue Next 2Y23.42%
Revenue Next 3Y16.25%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.52, which indicates a very decent valuation of CTRA.
CTRA's Price/Earnings ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 67.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of CTRA to the average of the S&P500 Index (26.93), we can say CTRA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.56 indicates a rather cheap valuation of CTRA.
Based on the Price/Forward Earnings ratio, CTRA is valued a bit cheaper than 79.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, CTRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
CTRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 68.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CTRA is valued a bit cheaper than 64.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
CTRA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CTRA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CTRA's earnings are expected to grow with 28.64% in the coming years.
PEG (NY)0.17
PEG (5Y)96.97
EPS Next 2Y37.22%
EPS Next 3Y28.64%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.63%.
Compared to an average industry Dividend Yield of 6.34, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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
CTRA pays out 41.69% 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.
DP41.69%
EPS Next 2Y37.22%
EPS Next 3Y28.64%
24.07
-0.15 (-0.62%)
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 Change0.81%
Market Cap18.37B
Analysts81.94
Price Target33.88 (40.76%)
Short Float %3.49%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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)0.71%
PT rev (3m)-0.46%
EPS NQ rev (1m)-6.86%
EPS NQ rev (3m)-19.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.53%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 7.56 | ||
| P/S | 2.77 | ||
| P/FCF | 12.41 | ||
| P/OCF | 5.31 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 5.45 |
EPS(TTM)2.09
EY8.68%
EPS(NY)3.18
Fwd EY13.22%
FCF(TTM)1.94
FCFY8.06%
OCF(TTM)4.53
OCFY18.84%
SpS8.68
BVpS19.08
TBVpS19.08
PEG (NY)0.17
PEG (5Y)96.97
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 | 2.12 |
F-Score7
WACC8.55%
ROIC/WACC0.85
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 Y66.18%
EPS Next 2Y37.22%
EPS Next 3Y28.64%
EPS Next 5Y25.7%
Revenue 1Y (TTM)17.1%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%54.6%
Revenue Next Year39.27%
Revenue Next 2Y23.42%
Revenue Next 3Y16.25%
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 5Y36.3%
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%