Cabot Oil & Gas Corporation
Cabot Oil & Gas Corporation Fundamental Analysis
Cabot Oil & Gas Corporation (COG) shows moderate financial fundamentals with a PE ratio of 7.78, profit margin of 82.75%, and ROE of 14.70%. The company generates $2.7B in annual revenue with weak year-over-year growth of -68.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -10.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COG's fundamental strength across five key dimensions:
Efficiency Score
WeakCOG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCOG trades at attractive valuation levels.
Growth Score
WeakCOG faces weak or negative growth trends.
Financial Health Score
ModerateCOG shows balanced financial health with some risks.
Profitability Score
ModerateCOG maintains healthy but balanced margins.
Key Financial Metrics
Is COG Expensive or Cheap?
P/E Ratio
COG trades at 7.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, COG's PEG of 0.39 indicates potential undervaluation.
Price to Book
The market values Cabot Oil & Gas Corporation at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.73 times EBITDA. This is generally considered low.
How Well Does COG Make Money?
Net Profit Margin
For every $100 in sales, Cabot Oil & Gas Corporation keeps $82.75 as profit after all expenses.
Operating Margin
Core operations generate 1.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.70 in profit for every $100 of shareholder equity.
ROA
Cabot Oil & Gas Corporation generates $9.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cabot Oil & Gas Corporation generates strong operating cash flow of $5.10B, reflecting robust business health.
Free Cash Flow
Cabot Oil & Gas Corporation generates strong free cash flow of $5.48B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.13 in free cash annually.
FCF Yield
COG converts 31.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How COG Stacks Against Its Sector Peers
| Metric | COG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.78 | 20.19 | Better (Cheaper) |
| ROE | 14.70% | 1019.00% | Weak |
| Net Margin | 82.75% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.22 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.07 | 4.60 | Weak Liquidity |
| ROA | 9.80% | -11655350.00% (disorted) | Weak |
COG outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cabot Oil & Gas Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-52.03%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
-7.83%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
8.26%
Industry Style: Cyclical, Value, Commodity
Growing