COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
NYSE:CTRA - New York Stock Exchange, Inc. - US1270971039 - Common Stock - Currency: USD
CTRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 212 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CTRA had positive earnings in the past year.
CTRA had a positive operating cash flow in the past year.
CTRA had positive earnings in each of the past 5 years.
Each year in the past 5 years CTRA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.18%, CTRA perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
CTRA has a Return On Equity of 8.53%. This is comparable to the rest of the industry: CTRA outperforms 50.94% of its industry peers.
CTRA's Return On Invested Capital of 5.40% is in line compared to the rest of the industry. CTRA outperforms 44.34% 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 25.74%.
The 3 year average ROIC (12.27%) for CTRA is well above the current ROIC(5.40%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
CTRA's Profit Margin of 20.52% is fine compared to the rest of the industry. CTRA outperforms 72.17% of its industry peers.
In the last couple of years the Profit Margin of CTRA has declined.
The Operating Margin of CTRA (25.39%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CTRA has declined.
The Gross Margin of CTRA (80.21%) is better than 89.62% of its industry peers.
In the last couple of years the Gross Margin of CTRA has grown nicely.
| Industry Rank | Sector 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%
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.
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 2.31 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 2.31. This is in the better half of the industry: CTRA outperforms 75.47% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.46, CTRA is doing good in the industry, outperforming 74.53% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that CTRA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, CTRA is doing good in the industry, outperforming 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.54
WACC10.05%
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 83.02% of the companies in the same industry.
A Quick Ratio of 2.88 indicates that CTRA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.88, CTRA belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The earnings per share for CTRA have decreased strongly by -25.88% in the last 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 a decrease in Revenue. In the last year, the revenue decreased by -7.71%.
Measured over the past years, CTRA shows a very strong growth in Revenue. The Revenue has been growing by 21.44% on average per year.
EPS 1Y (TTM)-25.88%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%-5.77%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%-9.4%
3.2 Future
CTRA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.57% yearly.
Based on estimates for the next years, CTRA will show a quite strong growth in Revenue. The Revenue will grow by 16.07% on average per year.
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.
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
A Price/Earnings ratio of 15.19 indicates a correct valuation of CTRA.
CTRA's Price/Earnings ratio is in line with the industry average.
CTRA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
CTRA is valuated reasonably with a Price/Forward Earnings ratio of 8.54.
CTRA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 72.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. CTRA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 8.54 |
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 60.38% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTRA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.15 | ||
| EV/EBITDA | 6.38 |
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)0.2
PEG (5Y)127.89
EPS Next 2Y41.24%
EPS Next 3Y30.09%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.34%.
CTRA's Dividend Yield is comparable with the industry average which is at 7.33.
CTRA's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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
55.80% 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 more than its dividend. This makes the dividend growth sustainable.
DP55.8%
EPS Next 2Y41.24%
EPS Next 3Y30.09%
25.67
+0.78 (+3.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.21%
Inst Owner Change0%
Ins Owners0.99%
Ins Owner Change-1.19%
Market Cap19.61B
Analysts82.5
Price Target34.35 (33.81%)
Short Float %2.75%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend0.84
Dividend Growth(5Y)18.85%
DP55.8%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.83%
Min EPS beat(2)-7.3%
Max EPS beat(2)10.97%
EPS beat(4)2
Avg EPS beat(4)4.1%
Min EPS beat(4)-7.78%
Max EPS beat(4)20.53%
EPS beat(8)5
Avg EPS beat(8)6.77%
EPS beat(12)9
Avg EPS beat(12)7.15%
EPS beat(16)10
Avg EPS beat(16)1.7%
Revenue beat(2)2
Avg Revenue beat(2)1.62%
Min Revenue beat(2)0.98%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)-0.3%
Revenue beat(12)8
Avg Revenue beat(12)1.55%
Revenue beat(16)9
Avg Revenue beat(16)-1.76%
PT rev (1m)-2.47%
PT rev (3m)1.95%
EPS NQ rev (1m)8.14%
EPS NQ rev (3m)8.86%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)4.77%
Revenue NQ rev (3m)10.34%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)4.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 8.54 | ||
| P/S | 3.59 | ||
| P/FCF | 19.15 | ||
| P/OCF | 7.02 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)1.69
EY6.58%
EPS(NY)3
Fwd EY11.7%
FCF(TTM)1.34
FCFY5.22%
OCF(TTM)3.66
OCFY14.25%
SpS7.14
BVpS17.18
TBVpS17.18
PEG (NY)0.2
PEG (5Y)127.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 8.53% | ||
| ROCE | 6.76% | ||
| ROIC | 5.4% | ||
| ROICexc | 6% | ||
| ROICexgc | 6% | ||
| OM | 25.39% | ||
| PM (TTM) | 20.52% | ||
| GM | 80.21% | ||
| FCFM | 18.76% |
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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.46 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 96.83% | ||
| Cap/Sales | 32.45% | ||
| Interest Coverage | 14 | ||
| Cash Conversion | 86.94% | ||
| Profit Quality | 91.43% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 2.31 |
F-Score5
WACC10.05%
ROIC/WACC0.54
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)-25.88%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%-5.77%
EPS Next Y77.79%
EPS Next 2Y41.24%
EPS Next 3Y30.09%
EPS Next 5Y29.57%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%-9.4%
Revenue Next Year43.52%
Revenue Next 2Y23.61%
Revenue Next 3Y16.07%
Revenue Next 5YN/A
EBIT growth 1Y-35.62%
EBIT growth 3Y-6.06%
EBIT growth 5Y9.59%
EBIT Next Year268.14%
EBIT Next 3Y57.52%
EBIT Next 5Y38.81%
FCF growth 1Y-34.32%
FCF growth 3Y2.93%
FCF growth 5Y9.27%
OCF growth 1Y-23.59%
OCF growth 3Y18.8%
OCF growth 5Y14.09%