COTERRA ENERGY INC (CTRA)
US1270971039 - Common Stock
We assign a fundamental rating of 6 out of 10 to CTRA. CTRA was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. CTRA has an average financial health and profitability rating. 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.
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 has a Return On Assets of 6.19%. This is comparable to the rest of the industry: CTRA outperforms 53.33% of its industry peers.
Looking at the Return On Equity, with a value of 9.90%, CTRA is in line with its industry, outperforming 44.76% of the companies in the same industry.
CTRA has a Return On Invested Capital (6.91%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CTRA is significantly below the industry average of 30.79%.
The 3 year average ROIC (12.47%) for CTRA is well above the current ROIC(6.91%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 9.9% | ||
| ROIC | 6.91% |
ROA(3y)11.29%
ROA(5y)10.7%
ROE(3y)18.09%
ROE(5y)18.99%
ROIC(3y)12.47%
ROIC(5y)11.86%
1.3 Margins
Looking at the Profit Margin, with a value of 23.29%, CTRA is in the better half of the industry, outperforming 68.10% of the companies in the same industry.
In the last couple of years the Profit Margin of CTRA has remained more or less at the same level.
With a decent Operating Margin value of 30.79%, CTRA is doing good in the industry, outperforming 61.43% of the companies in the same industry.
CTRA's Operating Margin has been stable in the last couple of years.
CTRA has a Gross Margin of 80.66%. This is amongst the best in the industry. CTRA outperforms 89.52% of its industry peers.
In the last couple of years the Gross Margin of CTRA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.79% | ||
| PM (TTM) | 23.29% | ||
| GM | 80.66% |
OM growth 3Y21.75%
OM growth 5Y0.25%
PM growth 3Y26.06%
PM growth 5Y1.48%
GM growth 3Y13.51%
GM growth 5Y4.53%
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.
The number of shares outstanding for CTRA has been reduced compared to 1 year ago.
CTRA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTRA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 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 2.42. This is in the better half of the industry: CTRA outperforms 64.29% of its industry peers.
The Debt to FCF ratio of CTRA is 2.81, which is a good value as it means it would take CTRA, 2.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.81, CTRA is in the better half of the industry, outperforming 70.95% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that CTRA is not too dependend on debt financing.
The Debt to Equity ratio of CTRA (0.16) is better than 75.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.83
WACC8.31%
2.3 Liquidity
CTRA has a Current Ratio of 1.49. This is a normal value and indicates that CTRA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CTRA (1.49) is better than 61.90% of its industry peers.
CTRA has a Quick Ratio of 1.46. 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 1.46, CTRA is in the better half of the industry, outperforming 65.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
CTRA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.00%.
Measured over the past years, CTRA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.51% on average per year.
CTRA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -39.12%.
Measured over the past years, CTRA shows a very strong growth in Revenue. The Revenue has been growing by 22.00% on average per year.
EPS 1Y (TTM)-60%
EPS 3Y61.63%
EPS 5Y13.51%
EPS Q2Q%-41.38%
Revenue 1Y (TTM)-39.12%
Revenue growth 3Y59.17%
Revenue growth 5Y22%
Sales Q2Q%-19.36%
3.2 Future
The Earnings Per Share is expected to grow by 16.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y-9.69%
EPS Next 2Y15.95%
EPS Next 3Y12.69%
EPS Next 5Y16.27%
Revenue Next Year-1.47%
Revenue Next 2Y8.39%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CTRA is valuated correctly with a Price/Earnings ratio of 13.40.
The rest of the industry has a similar Price/Earnings ratio as CTRA.
Compared to an average S&P500 Price/Earnings ratio of 24.29, CTRA is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.39 indicates a reasonable valuation of CTRA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTRA indicates a somewhat cheap valuation: CTRA is cheaper than 67.62% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CTRA to the average of the S&P500 Index (20.35), we can say CTRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTRA is on the same level as its industry peers.
CTRA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.21 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
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 12.69% in the coming years.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y15.95%
EPS Next 3Y12.69%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 5.88, 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
On average, the dividend of CTRA grows each year by 35.96%, 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)35.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
47.19% 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.
DP47.19%
EPS Next 2Y15.95%
EPS Next 3Y12.69%
COTERRA ENERGY INC
NYSE:CTRA (7/25/2024, 7:04:00 PM)
Premarket: 25.74 +0.02 (+0.08%)25.72
-0.07 (-0.27%)
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 Cap19.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 8.39 | ||
| 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)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 9.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.79% | ||
| PM (TTM) | 23.29% | ||
| GM | 80.66% | ||
| 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.46 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-60%
EPS 3Y61.63%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-39.12%
Revenue growth 3Y59.17%
Revenue growth 5Y
Sales 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