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 decent growth rate and is not valued too expensively.
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.
CTRA had positive earnings in each of the past 5 years.
In the past 5 years CTRA always reported a positive cash flow from operatings.
1.2 Ratios
CTRA has a Return On Assets (5.18%) which is in line with its industry peers.
CTRA has a Return On Equity (8.53%) which is in line with its industry peers.
CTRA has a Return On Invested Capital of 5.40%. This is comparable 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 27.42%.
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 has a Profit Margin of 20.52%. This is in the better half of the industry: CTRA outperforms 72.17% of its industry peers.
CTRA's Profit Margin has declined in the last couple of years.
The Operating Margin of CTRA (25.39%) is comparable to the rest of the industry.
CTRA's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 80.21%, CTRA belongs to the best of the industry, outperforming 89.62% 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 | 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.
The number of shares outstanding for CTRA has been increased compared to 5 years ago.
The debt/assets ratio for CTRA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.36 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 2.36. This is in the better half of the industry: CTRA outperforms 75.94% of its industry peers.
The Debt to FCF ratio of CTRA is 3.46, which is a good value as it means it would take CTRA, 3.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.46, CTRA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CTRA has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTRA (0.27) is better than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.54
WACC9.99%
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.
The Current ratio of CTRA (2.92) is better than 82.55% of its industry peers.
A Quick Ratio of 2.88 indicates that CTRA has no problem at all paying its short term obligations.
CTRA's Quick ratio of 2.88 is amongst the best of the industry. CTRA outperforms 84.43% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 0.12% on average over the past years.
The Revenue has decreased by -7.71% in the past year.
The Revenue has been growing by 21.44% on average over the past years. This is a very strong growth!
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.
CTRA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.72% yearly.
EPS Next Y78.26%
EPS Next 2Y42.81%
EPS Next 3Y30.33%
EPS Next 5Y29.57%
Revenue Next Year44.97%
Revenue Next 2Y24.42%
Revenue Next 3Y14.72%
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
A Price/Earnings ratio of 15.30 indicates a correct valuation of CTRA.
CTRA's Price/Earnings ratio is in line with the industry average.
CTRA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
CTRA is valuated reasonably with a Price/Forward Earnings ratio of 8.58.
Based on the Price/Forward Earnings ratio, CTRA is valued a bit cheaper than the industry average as 70.75% of the companies are valued more expensively.
CTRA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CTRA.
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 | 19.29 | ||
| EV/EBITDA | 6.61 |
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.
CTRA's earnings are expected to grow with 30.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)128.79
EPS Next 2Y42.81%
EPS Next 3Y30.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.29%, CTRA has a reasonable but not impressive dividend return.
CTRA's Dividend Yield is comparable with the industry average which is at 7.52.
Compared to an average S&P500 Dividend Yield of 2.52, 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 55.80% of its income as dividend. 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.
DP55.8%
EPS Next 2Y42.81%
EPS Next 3Y30.33%
25.85
+0.22 (+0.86%)
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 Cap19.75B
Analysts82.5
Price Target35.37 (36.83%)
Short Float %2.84%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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)0.45%
PT rev (3m)5%
EPS NQ rev (1m)3.53%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)-7.92%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)3.17%
Revenue NQ rev (3m)8.94%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)7.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 8.58 | ||
| P/S | 3.62 | ||
| P/FCF | 19.29 | ||
| P/OCF | 7.07 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)1.69
EY6.54%
EPS(NY)3.01
Fwd EY11.65%
FCF(TTM)1.34
FCFY5.18%
OCF(TTM)3.66
OCFY14.15%
SpS7.14
BVpS17.18
TBVpS17.18
PEG (NY)0.2
PEG (5Y)128.79
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 | 2.36 |
F-Score5
WACC9.99%
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 Y78.26%
EPS Next 2Y42.81%
EPS Next 3Y30.33%
EPS Next 5Y29.57%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%-9.4%
Revenue Next Year44.97%
Revenue Next 2Y24.42%
Revenue Next 3Y14.72%
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%