COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
NYSE:CTRA - New York Stock Exchange, Inc. - US1270971039 - Common Stock - Currency: USD
Taking everything into account, CTRA scores 6 out of 10 in our fundamental rating. CTRA was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. CTRA has only an average score on both its financial health and profitability. 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.
CTRA had a positive operating cash flow in the past year.
Each year in the past 5 years CTRA has been profitable.
CTRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 6.15%, CTRA perfoms like the industry average, outperforming 56.37% of the companies in the same industry.
CTRA has a Return On Equity (9.48%) which is comparable to the rest of the industry.
The Return On Invested Capital of CTRA (6.67%) 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 28.75%.
The 3 year average ROIC (12.47%) for CTRA is well above the current ROIC(6.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 9.48% | ||
| ROIC | 6.67% |
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 21.86%, CTRA is in the better half of the industry, outperforming 70.59% 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.
Looking at the Operating Margin, with a value of 28.96%, CTRA is in the better half of the industry, outperforming 61.27% of the companies in the same industry.
CTRA's Operating Margin has been stable in the last couple of years.
The Gross Margin of CTRA (81.02%) is better than 91.18% of its industry peers.
CTRA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.96% | ||
| PM (TTM) | 21.86% | ||
| GM | 81.02% |
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.
CTRA has less shares outstanding than it did 1 year ago.
CTRA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CTRA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.78 indicates that CTRA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTRA has a better Altman-Z score (2.78) than 73.04% of its industry peers.
CTRA has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.85, CTRA is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
CTRA has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTRA (0.16) is better than 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.79
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.61 indicates that CTRA should not have too much problems paying its short term obligations.
CTRA has a Current ratio of 1.61. This is in the better half of the industry: CTRA outperforms 65.69% of its industry peers.
A Quick Ratio of 1.56 indicates that CTRA should not have too much problems paying its short term obligations.
The Quick ratio of CTRA (1.56) is better than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for CTRA have decreased strongly by -41.10% in the last year.
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 -14.23%.
The Revenue has been growing by 22.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-41.1%
EPS 3Y61.63%
EPS 5Y13.51%
EPS Q2Q%-36%
Revenue 1Y (TTM)-14.23%
Revenue growth 3Y59.17%
Revenue growth 5Y22%
Sales Q2Q%0.22%
3.2 Future
CTRA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.23% yearly.
The Revenue is expected to grow by 12.07% on average over the next years. This is quite good.
EPS Next Y-27.38%
EPS Next 2Y19.79%
EPS Next 3Y19.69%
EPS Next 5Y4.23%
Revenue Next Year-6.77%
Revenue Next 2Y13.99%
Revenue Next 3Y12.07%
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 decreasing.
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 16.36, the valuation of CTRA can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CTRA.
When comparing the Price/Earnings ratio of CTRA to the average of the S&P500 Index (29.63), we can say CTRA is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.60, which indicates a very decent valuation of CTRA.
71.57% of the companies in the same industry are more expensive than CTRA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CTRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
CTRA's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 18.44 | ||
| EV/EBITDA | 6.52 |
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 19.69% in the coming years.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y19.79%
EPS Next 3Y19.69%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.04%.
Compared to an average industry Dividend Yield of 6.75, 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 | 3.04% |
5.2 History
The dividend of CTRA is nicely growing with an annual growth rate of 35.96%!
CTRA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)35.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
50.20% 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.
DP50.2%
EPS Next 2Y19.79%
EPS Next 3Y19.69%
28.14
-0.64 (-2.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.85%
Inst Owner Change0%
Ins Owners0.98%
Ins Owner Change-3.81%
Market Cap20.72B
Analysts82.58
Price Target34.71 (23.35%)
Short Float %2.6%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend1.17
Dividend Growth(5Y)35.96%
DP50.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.54%
Min EPS beat(2)-7.78%
Max EPS beat(2)-7.3%
EPS beat(4)1
Avg EPS beat(4)-0.48%
Min EPS beat(4)-7.78%
Max EPS beat(4)20.53%
EPS beat(8)5
Avg EPS beat(8)5.77%
EPS beat(12)8
Avg EPS beat(12)4.53%
EPS beat(16)10
Avg EPS beat(16)2.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-6.2%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)2.57%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)2.86%
Revenue beat(16)9
Avg Revenue beat(16)-1.37%
PT rev (1m)3.02%
PT rev (3m)9.97%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 8.6 | ||
| P/S | 3.66 | ||
| P/FCF | 18.44 | ||
| P/OCF | 7.08 | ||
| P/B | 1.59 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 6.52 |
EPS(TTM)1.72
EY6.11%
EPS(NY)3.27
Fwd EY11.63%
FCF(TTM)1.53
FCFY5.42%
OCF(TTM)3.98
OCFY14.13%
SpS7.68
BVpS17.71
TBVpS17.71
PEG (NY)N/A
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 9.48% | ||
| ROCE | 8.61% | ||
| ROIC | 6.67% | ||
| ROICexc | 6.98% | ||
| ROICexgc | 6.98% | ||
| OM | 28.96% | ||
| PM (TTM) | 21.86% | ||
| GM | 81.02% | ||
| FCFM | 19.86% |
ROA(3y)11.29%
ROA(5y)10.7%
ROE(3y)18.09%
ROE(5y)18.99%
ROIC(3y)12.47%
ROIC(5y)11.86%
ROICexc(3y)13.03%
ROICexc(5y)12.4%
ROICexgc(3y)13.03%
ROICexgc(5y)12.4%
ROCE(3y)16.09%
ROCE(5y)15.3%
ROICexcg growth 3Y17.75%
ROICexcg growth 5Y-9.68%
ROICexc growth 3Y17.75%
ROICexc growth 5Y-9.68%
OM growth 3Y21.75%
OM growth 5Y0.25%
PM growth 3Y26.06%
PM growth 5Y1.48%
GM growth 3Y13.51%
GM growth 5Y4.53%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 100.28% | ||
| Cap/Sales | 31.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.17% | ||
| Profit Quality | 90.87% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 2.78 |
F-Score5
WACC8.48%
ROIC/WACC0.79
Cap/Depr(3y)112.97%
Cap/Depr(5y)136.11%
Cap/Sales(3y)25.16%
Cap/Sales(5y)30.58%
Profit Quality(3y)89.89%
Profit Quality(5y)93.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-41.1%
EPS 3Y61.63%
EPS 5Y13.51%
EPS Q2Q%-36%
EPS Next Y-27.38%
EPS Next 2Y19.79%
EPS Next 3Y19.69%
EPS Next 5Y4.23%
Revenue 1Y (TTM)-14.23%
Revenue growth 3Y59.17%
Revenue growth 5Y22%
Sales Q2Q%0.22%
Revenue Next Year-6.77%
Revenue Next 2Y13.99%
Revenue Next 3Y12.07%
Revenue Next 5YN/A
EBIT growth 1Y-43.09%
EBIT growth 3Y93.78%
EBIT growth 5Y22.31%
EBIT Next Year56.88%
EBIT Next 3Y38.64%
EBIT Next 5Y19.33%
FCF growth 1Y-67.42%
FCF growth 3Y97.49%
FCF growth 5Y49.26%
OCF growth 1Y-40.52%
OCF growth 3Y67.51%
OCF growth 5Y27.05%