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 213 industry peers in the Oil, Gas & Consumable Fuels industry. CTRA has only an average score on both its financial health and profitability. CTRA is growing strongly while it also seems undervalued. This is an interesting combination
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.
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 decent Return On Assets value of 5.36%, CTRA is doing good in the industry, outperforming 61.03% of the companies in the same industry.
CTRA has a Return On Equity of 9.02%. This is comparable to the rest of the industry: CTRA outperforms 53.05% of its industry peers.
CTRA has a Return On Invested Capital (5.89%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CTRA is significantly below the industry average of 25.87%.
The 3 year average ROIC (12.27%) for CTRA is well above the current ROIC(5.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 9.02% | ||
| ROIC | 5.89% |
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 (21.66%) than 74.18% of its industry peers.
CTRA's Profit Margin has declined in the last couple of years.
CTRA's Operating Margin of 27.78% is fine compared to the rest of the industry. CTRA outperforms 63.38% of its industry peers.
In the last couple of years the Operating Margin of CTRA has declined.
With an excellent Gross Margin value of 81.23%, CTRA belongs to the best of the industry, outperforming 91.08% 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 | 27.78% | ||
| PM (TTM) | 21.66% | ||
| GM | 81.23% |
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.
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.
The debt/assets ratio for CTRA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that CTRA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTRA (1.98) is better than 67.61% of its industry peers.
CTRA has a debt to FCF ratio of 3.40. This is a good value and a sign of high solvency as CTRA would need 3.40 years to pay back of all of its debts.
CTRA has a better Debt to FCF ratio (3.40) than 77.00% of its industry peers.
CTRA has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTRA (0.30) is better than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.59
WACC9.97%
2.3 Liquidity
A Current Ratio of 0.90 indicates that CTRA may have some problems paying its short term obligations.
CTRA has a Current ratio of 0.90. This is in the lower half of the industry: CTRA underperforms 63.38% of its industry peers.
A Quick Ratio of 0.86 indicates that CTRA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, CTRA is in line with its industry, outperforming 43.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.13% 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 a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
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)3.13%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%56.86%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%32.87%
3.2 Future
The Earnings Per Share is expected to grow by 29.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.03% on average over the next years. This is quite good.
EPS Next Y69.89%
EPS Next 2Y37.68%
EPS Next 3Y26.82%
EPS Next 5Y29.57%
Revenue Next Year39.27%
Revenue Next 2Y22.45%
Revenue Next 3Y16.03%
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
Based on the Price/Earnings ratio of 12.38, the valuation of CTRA can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CTRA.
CTRA is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
CTRA is valuated cheaply with a Price/Forward Earnings ratio of 7.65.
CTRA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 75.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CTRA to the average of the S&P500 Index (21.76), we can say CTRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
61.03% of the companies in the same industry are more expensive than CTRA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTRA indicates a somewhat cheap valuation: CTRA is cheaper than 64.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 6.4 |
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 26.82% in the coming years.
PEG (NY)0.18
PEG (5Y)104.27
EPS Next 2Y37.68%
EPS Next 3Y26.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.48%, CTRA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.77, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
On average, the dividend of CTRA grows each year by 18.85%, which is quite nice.
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
50.23% 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 earnings are growing more, so the dividend growth is sustainable.
DP50.23%
EPS Next 2Y37.68%
EPS Next 3Y26.82%
24.52
+0.11 (+0.45%)
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-1.65%
Market Cap18.74B
Analysts82.5
Price Target34.03 (38.78%)
Short Float %2.69%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend0.84
Dividend Growth(5Y)18.85%
DP50.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.8%
Min EPS beat(2)-1.36%
Max EPS beat(2)10.97%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-7.78%
Max EPS beat(4)10.97%
EPS beat(8)4
Avg EPS beat(8)3.94%
EPS beat(12)8
Avg EPS beat(12)5.42%
EPS beat(16)9
Avg EPS beat(16)1.31%
Revenue beat(2)1
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-5.32%
Max Revenue beat(2)0.98%
Revenue beat(4)2
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)2.26%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)8
Avg Revenue beat(12)1.64%
Revenue beat(16)9
Avg Revenue beat(16)-1.78%
PT rev (1m)-3.79%
PT rev (3m)-1.94%
EPS NQ rev (1m)-13.2%
EPS NQ rev (3m)-19.11%
EPS NY rev (1m)-4.44%
EPS NY rev (3m)-12.25%
Revenue NQ rev (1m)-7.42%
Revenue NQ rev (3m)-5.76%
Revenue NY rev (1m)-3.93%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 7.65 | ||
| P/S | 3.16 | ||
| P/FCF | 14.86 | ||
| P/OCF | 6.08 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)1.98
EY8.08%
EPS(NY)3.2
Fwd EY13.06%
FCF(TTM)1.65
FCFY6.73%
OCF(TTM)4.03
OCFY16.46%
SpS7.76
BVpS18.63
TBVpS18.63
PEG (NY)0.18
PEG (5Y)104.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 9.02% | ||
| ROCE | 7.37% | ||
| ROIC | 5.89% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 5.94% | ||
| OM | 27.78% | ||
| PM (TTM) | 21.66% | ||
| GM | 81.23% | ||
| FCFM | 21.27% |
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 | 0.3 | ||
| Debt/FCF | 3.4 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 95.59% | ||
| Cap/Sales | 30.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.77% | ||
| Profit Quality | 98.21% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.98 |
F-Score5
WACC9.97%
ROIC/WACC0.59
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)3.13%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%56.86%
EPS Next Y69.89%
EPS Next 2Y37.68%
EPS Next 3Y26.82%
EPS Next 5Y29.57%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%32.87%
Revenue Next Year39.27%
Revenue Next 2Y22.45%
Revenue Next 3Y16.03%
Revenue Next 5YN/A
EBIT growth 1Y-3.97%
EBIT growth 3Y-6.06%
EBIT growth 5Y9.59%
EBIT Next Year268.14%
EBIT Next 3Y57.52%
EBIT Next 5Y38.81%
FCF growth 1Y-65.96%
FCF growth 3Y2.93%
FCF growth 5Y9.27%
OCF growth 1Y-45.22%
OCF growth 3Y18.8%
OCF growth 5Y14.09%