COTERRA ENERGY INC (CTRA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTRA - US1270971039 - Common Stock
27.42 USD
+0.14 (+0.51%)
27.52 USD
+0.1 (+0.36%)
Taking everything into account, CTRA scores 7 out of 10 in our fundamental rating. CTRA was compared to 207 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make CTRA suitable 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.
- 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
- The Return On Assets of CTRA (6.86%) is better than 76.81% of its industry peers.
- With a decent Return On Equity value of 11.18%, CTRA is doing good in the industry, outperforming 67.15% of the companies in the same industry.
- CTRA has a Return On Invested Capital of 7.86%. This is in the better half of the industry: CTRA outperforms 72.46% 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 21.94%.
- The last Return On Invested Capital (7.86%) for CTRA is well below the 3 year average (12.27%), which needs to be investigated, but indicates that CTRA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.86% | ||
| ROE | 11.18% | ||
| ROIC | 7.86% |
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 23.25% is amongst the best of the industry. CTRA outperforms 81.16% of its industry peers.
- In the last couple of years the Profit Margin of CTRA has declined.
- CTRA has a better Operating Margin (31.31%) than 77.78% of its industry peers.
- In the last couple of years the Operating Margin of CTRA has declined.
- CTRA has a Gross Margin of 82.81%. This is amongst the best in the industry. CTRA outperforms 91.79% of its industry peers.
- CTRA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.31% | ||
| PM (TTM) | 23.25% | ||
| GM | 82.81% |
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.
- 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 2.34 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 2.34. This is in the better half of the industry: CTRA outperforms 70.53% of its industry peers.
- CTRA has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as CTRA would need 2.71 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.71, CTRA is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- A Debt/Equity ratio of 0.25 indicates that CTRA is not too dependend on debt financing.
- CTRA has a better Debt to Equity ratio (0.25) than 67.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.95
WACC8.27%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that CTRA should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.02, CTRA perfoms like the industry average, outperforming 43.96% of the companies in the same industry.
- CTRA has a Quick Ratio of 1.02. 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's Quick ratio of 0.98 is in line compared to the rest of the industry. CTRA outperforms 50.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.74% over the past year.
- CTRA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.12% yearly.
- The Revenue has grown by 25.13% in the past year. This is a very strong growth!
- 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)26.74%
EPS 3Y-5.3%
EPS 5Y0.12%
EPS Q2Q%28.12%
Revenue 1Y (TTM)25.13%
Revenue growth 3Y16.53%
Revenue growth 5Y21.44%
Sales Q2Q%33.7%
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 15.83% yearly.
- The Revenue is expected to grow by 11.96% on average over the next years. This is quite good.
EPS Next Y31.41%
EPS Next 2Y18.13%
EPS Next 3Y22%
EPS Next 5Y15.83%
Revenue Next Year37.62%
Revenue Next 2Y18.86%
Revenue Next 3Y14.98%
Revenue Next 5Y11.96%
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
- The Price/Earnings ratio is 12.58, which indicates a correct valuation of CTRA.
- Compared to the rest of the industry, the Price/Earnings ratio of CTRA indicates a somewhat cheap valuation: CTRA is cheaper than 69.57% of the companies listed in the same industry.
- CTRA is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 11.63 indicates a reasonable valuation of CTRA.
- Based on the Price/Forward Earnings ratio, CTRA is valued a bit cheaper than 72.46% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CTRA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
- 73.43% of the companies in the same industry are more expensive than CTRA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CTRA is valued a bit cheaper than the industry average as 64.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.42 | ||
| EV/EBITDA | 5.62 |
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 22.00% in the coming years.
PEG (NY)0.4
PEG (5Y)105.91
EPS Next 2Y18.13%
EPS Next 3Y22%
5. Dividend
5.1 Amount
- CTRA has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
- CTRA's Dividend Yield is comparable with the industry average which is at 3.73.
- CTRA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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
- CTRA pays out 40.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of CTRA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.64%
EPS Next 2Y18.13%
EPS Next 3Y22%
COTERRA ENERGY INC / CTRA FAQ
What is the fundamental rating for CTRA stock?
ChartMill assigns a fundamental rating of 7 / 10 to CTRA.
Can you provide the valuation status for COTERRA ENERGY INC?
ChartMill assigns a valuation rating of 7 / 10 to COTERRA ENERGY INC (CTRA). This can be considered as Undervalued.
How profitable is COTERRA ENERGY INC (CTRA) stock?
COTERRA ENERGY INC (CTRA) has a profitability rating of 7 / 10.
How financially healthy is COTERRA ENERGY INC?
The financial health rating of COTERRA ENERGY INC (CTRA) is 5 / 10.
Can you provide the expected EPS growth for CTRA stock?
The Earnings per Share (EPS) of COTERRA ENERGY INC (CTRA) is expected to grow by 31.41% in the next year.