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 6 out of 10 to CTRA. CTRA was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of CTRA get a neutral evaluation. Nothing too spectacular is happening here. CTRA has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
In the past year CTRA was profitable.
CTRA had a positive operating cash flow in the past year.
CTRA had positive earnings in each of the past 5 years.
CTRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.36%, CTRA is doing good in the industry, outperforming 61.50% of the companies in the same industry.
CTRA's Return On Equity of 9.02% is in line compared to the rest of the industry. CTRA outperforms 54.46% of its industry peers.
CTRA has a Return On Invested Capital of 5.89%. This is comparable to the rest of the industry: CTRA outperforms 50.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTRA is significantly below the industry average of 23.55%.
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 72.77% of its industry peers.
In the last couple of years the Profit Margin of CTRA has declined.
CTRA's Operating Margin of 27.78% is fine compared to the rest of the industry. CTRA outperforms 65.73% of its industry peers.
CTRA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.23%, CTRA belongs to the top of the industry, outperforming 91.55% 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
CTRA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
CTRA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.09 indicates that CTRA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTRA's Altman-Z score of 2.09 is fine compared to the rest of the industry. CTRA outperforms 68.08% of its industry peers.
The Debt to FCF ratio of CTRA is 3.40, which is a good value as it means it would take CTRA, 3.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CTRA (3.40) is better than 76.06% 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.
CTRA has a better Debt to Equity ratio (0.30) than 62.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.71
WACC8.28%
2.3 Liquidity
CTRA has a Current Ratio of 0.90. This is a bad value and indicates that CTRA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.90, CTRA is not doing good in the industry: 62.91% of the companies in the same industry are doing better.
CTRA has a Quick Ratio of 0.90. This is a bad value and indicates that CTRA is not financially healthy enough and could expect problems in meeting its short term obligations.
CTRA has a Quick ratio of 0.86. This is comparable to the rest of the industry: CTRA outperforms 43.66% of its industry peers.
| 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.
Measured over the past 5 years, CTRA shows a small growth in Earnings Per Share. The EPS has been growing by 0.12% on average per year.
The Revenue has been growing slightly by 6.45% in the past year.
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
Based on estimates for the next years, CTRA will show a very strong growth in Earnings Per Share. The EPS will grow by 25.70% on average per year.
CTRA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.06% yearly.
EPS Next Y69.89%
EPS Next 2Y37.68%
EPS Next 3Y26.82%
EPS Next 5Y25.7%
Revenue Next Year38.38%
Revenue Next 2Y22.18%
Revenue Next 3Y16.06%
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 correctly with a Price/Earnings ratio of 13.48.
The rest of the industry has a similar Price/Earnings ratio as CTRA.
CTRA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.33 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 77.93% of the companies listed in the same industry.
CTRA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTRA is valued a bit cheaper than the industry average as 63.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTRA indicates a somewhat cheap valuation: CTRA is cheaper than 61.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 6.89 |
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)0.19
PEG (5Y)113.54
EPS Next 2Y37.68%
EPS Next 3Y26.82%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
CTRA's Dividend Yield is comparable with the industry average which is at 6.58.
Compared to an average S&P500 Dividend Yield of 2.40, CTRA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
The dividend of CTRA is nicely growing with an annual growth rate of 18.85%!
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
CTRA pays out 50.23% of its income as dividend. 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.
DP50.23%
EPS Next 2Y37.68%
EPS Next 3Y26.82%
26.7
+0.56 (+2.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.79%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change1.98%
Market Cap20.38B
Analysts82.58
Price Target33.31 (24.76%)
Short Float %3.44%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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)-2.11%
PT rev (3m)-5.4%
EPS NQ rev (1m)-6.69%
EPS NQ rev (3m)-20.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.25%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-6.81%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 8.33 | ||
| P/S | 3.44 | ||
| P/FCF | 16.16 | ||
| P/OCF | 6.61 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 6.89 |
EPS(TTM)1.98
EY7.42%
EPS(NY)3.2
Fwd EY12%
FCF(TTM)1.65
FCFY6.19%
OCF(TTM)4.04
OCFY15.13%
SpS7.77
BVpS18.65
TBVpS18.65
PEG (NY)0.19
PEG (5Y)113.54
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 | 2.09 |
F-Score5
WACC8.28%
ROIC/WACC0.71
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 5Y25.7%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%32.87%
Revenue Next Year38.38%
Revenue Next 2Y22.18%
Revenue Next 3Y16.06%
Revenue Next 5YN/A
EBIT growth 1Y-3.97%
EBIT growth 3Y-6.06%
EBIT growth 5Y9.59%
EBIT Next Year248.25%
EBIT Next 3Y57.09%
EBIT Next 5Y36.3%
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%