COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
NYSE:CTRA - New York Stock Exchange, Inc. - US1270971039 - Common Stock - Currency: USD
Overall CTRA gets a fundamental rating of 6 out of 10. We evaluated CTRA against 211 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.
In the past 5 years CTRA has always been profitable.
CTRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTRA has a better Return On Assets (5.36%) than 61.61% of its industry peers.
CTRA has a Return On Equity (9.02%) which is in line with its industry peers.
The Return On Invested Capital of CTRA (5.89%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTRA is significantly below the industry average of 23.70%.
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's Profit Margin of 21.66% is fine compared to the rest of the industry. CTRA outperforms 72.51% of its industry peers.
CTRA's Profit Margin has declined in the last couple of years.
CTRA has a Operating Margin of 27.78%. This is in the better half of the industry: CTRA outperforms 65.88% 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 91.94% 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.
Compared to 5 years ago, CTRA has more shares outstanding
The debt/assets ratio for CTRA is higher compared to a year ago.
2.2 Solvency
CTRA has an Altman-Z score of 2.02. 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.
With a decent Altman-Z score value of 2.02, CTRA is doing good in the industry, outperforming 66.82% of the companies in the same industry.
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.
The Debt to FCF ratio of CTRA (3.40) is better than 76.78% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that CTRA is not too dependend on debt financing.
CTRA's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. CTRA outperforms 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.66
WACC8.87%
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.
Looking at the Current ratio, with a value of 0.90, CTRA is doing worse than 62.56% of the companies in the same industry.
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.
The Quick ratio of CTRA (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CTRA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.13%.
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.
Looking at the last year, CTRA shows a small growth in Revenue. The Revenue has grown by 6.45% in the last 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
CTRA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.70% yearly.
CTRA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.91% yearly.
EPS Next Y64.74%
EPS Next 2Y36.7%
EPS Next 3Y26.45%
EPS Next 5Y25.7%
Revenue Next Year38.79%
Revenue Next 2Y22.29%
Revenue Next 3Y15.91%
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.
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 12.74.
Based on the Price/Earnings ratio, CTRA is valued a bit cheaper than 60.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. CTRA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.99, the valuation of CTRA can be described as very cheap.
Based on the Price/Forward Earnings ratio, CTRA is valued a bit cheaper than the industry average as 77.73% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CTRA to the average of the S&P500 Index (21.90), we can say CTRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
64.45% of the companies in the same industry are more expensive than CTRA, based on the Enterprise Value to EBITDA ratio.
63.03% of the companies in the same industry are more expensive than CTRA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 6.57 |
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.
CTRA has a very decent profitability rating, which may justify a higher PE ratio.
CTRA's earnings are expected to grow with 26.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)107.25
EPS Next 2Y36.7%
EPS Next 3Y26.45%
5. Dividend
5.1 Amount
CTRA has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
CTRA's Dividend Yield is comparable with the industry average which is at 6.51.
CTRA's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
On average, the dividend of CTRA grows each year by 18.85%, which is quite nice.
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
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 2Y36.7%
EPS Next 3Y26.45%
25.22
+0.19 (+0.76%)
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 Cap19.25B
Analysts82.58
Price Target33.64 (33.39%)
Short Float %3.65%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)-1.16%
PT rev (3m)-4.48%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-20.13%
EPS NY rev (1m)-3.03%
EPS NY rev (3m)-14.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.62%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 7.99 | ||
| P/S | 3.25 | ||
| P/FCF | 15.27 | ||
| P/OCF | 6.24 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)1.98
EY7.85%
EPS(NY)3.16
Fwd EY12.52%
FCF(TTM)1.65
FCFY6.55%
OCF(TTM)4.04
OCFY16.02%
SpS7.77
BVpS18.65
TBVpS18.65
PEG (NY)0.2
PEG (5Y)107.25
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 | 2.02 |
F-Score5
WACC8.87%
ROIC/WACC0.66
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 Y64.74%
EPS Next 2Y36.7%
EPS Next 3Y26.45%
EPS Next 5Y25.7%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%32.87%
Revenue Next Year38.79%
Revenue Next 2Y22.29%
Revenue Next 3Y15.91%
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%