COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
USA - NYSE:CTRA - US1270971039 - Common Stock
23.32 USD
-0.1 (-0.43%)
23.26 USD
-0.06 (-0.26%)
We assign a fundamental rating of 6 out of 10 to CTRA. CTRA was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. CTRA has an excellent profitability rating, but there are some minor concerns on its financial health. CTRA is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make CTRA a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year CTRA was profitable.
In the past year CTRA had a positive cash flow from operations.
Each year in the past 5 years CTRA has been profitable.
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 6.57%, CTRA is doing good in the industry, outperforming 73.46% of the companies in the same industry.
The Return On Equity of CTRA (10.82%) is better than 63.98% of its industry peers.
The Return On Invested Capital of CTRA (7.30%) is better than 65.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTRA is significantly below the industry average of 21.53%.
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 79.15% 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 75.83% of its industry peers.
CTRA's Operating Margin has declined in the last couple of years.
The Gross Margin of CTRA (82.52%) is better than 91.94% of its industry peers.
CTRA's Gross Margin has improved in the last couple of years.
| 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
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.
The number of shares outstanding for CTRA has been increased compared to 5 years ago.
Compared to 1 year ago, CTRA has a worse debt to assets ratio.
2.2 Solvency
CTRA has an Altman-Z score of 2.09. 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.
The Altman-Z score of CTRA (2.09) is better than 68.25% 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's Debt to FCF ratio of 2.83 is fine compared to the rest of the industry. CTRA outperforms 77.73% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that CTRA is not too dependend on debt financing.
CTRA's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. CTRA outperforms 62.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.93
WACC7.89%
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 47.87% of its industry peers.
CTRA has a Quick Ratio of 1.08. This is a normal value and indicates that CTRA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CTRA (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
CTRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.00%, which is quite good.
The Earnings Per Share has been growing slightly by 0.12% on average over the past years.
Looking at the last year, CTRA shows a quite strong growth in Revenue. The Revenue has grown by 17.10% in the last year.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.42% yearly.
Based on estimates for the next years, CTRA will show a quite strong growth in Revenue. The Revenue will grow by 16.63% on average per year.
EPS Next Y51.91%
EPS Next 2Y42.46%
EPS Next 3Y29.11%
EPS Next 5Y14.42%
Revenue Next Year40.56%
Revenue Next 2Y23.17%
Revenue Next 3Y16.63%
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 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
Based on the Price/Earnings ratio of 11.16, the valuation of CTRA can be described as reasonable.
69.19% of the companies in the same industry are more expensive than CTRA, based on the Price/Earnings ratio.
CTRA is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.80, the valuation of CTRA can be described as very cheap.
87.68% of the companies in the same industry are more expensive than CTRA, based on the Price/Forward Earnings ratio.
CTRA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 6.8 |
4.2 Price Multiples
CTRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTRA is cheaper than 71.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CTRA is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.02 | ||
| EV/EBITDA | 5.33 |
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 29.11% in the coming years.
PEG (NY)0.21
PEG (5Y)93.95
EPS Next 2Y42.46%
EPS Next 3Y29.11%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.30, CTRA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CTRA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
5.2 History
The dividend of CTRA is nicely growing with an annual growth rate of 18.85%!
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.
CTRA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.69%
EPS Next 2Y42.46%
EPS Next 3Y29.11%
23.32
-0.1 (-0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.45%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change-1.63%
Market Cap17.80B
Analysts81.94
Price Target33.62 (44.17%)
Short Float %4.05%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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)-0.38%
PT rev (3m)-0.05%
EPS NQ rev (1m)-7.82%
EPS NQ rev (3m)-24.79%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-8.59%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 6.8 | ||
| P/S | 2.69 | ||
| P/FCF | 12.02 | ||
| P/OCF | 5.14 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 5.33 |
EPS(TTM)2.09
EY8.96%
EPS(NY)3.43
Fwd EY14.71%
FCF(TTM)1.94
FCFY8.32%
OCF(TTM)4.54
OCFY19.45%
SpS8.68
BVpS19.08
TBVpS19.08
PEG (NY)0.21
PEG (5Y)93.95
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 | 2.09 |
F-Score7
WACC7.89%
ROIC/WACC0.93
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 Y51.91%
EPS Next 2Y42.46%
EPS Next 3Y29.11%
EPS Next 5Y14.42%
Revenue 1Y (TTM)17.1%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%54.6%
Revenue Next Year40.56%
Revenue Next 2Y23.17%
Revenue Next 3Y16.63%
Revenue Next 5YN/A
EBIT growth 1Y19.58%
EBIT growth 3Y-6.06%
EBIT growth 5Y9.59%
EBIT Next Year238.86%
EBIT Next 3Y58.26%
EBIT Next 5Y31.69%
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%