Coterra Energy Inc.
Coterra Energy Inc. Fundamental Analysis
Coterra Energy Inc. (CTRA) shows moderate financial fundamentals with a PE ratio of 14.40, profit margin of 23.47%, and ROE of 11.63%. The company generates $7.0B in annual revenue with weak year-over-year growth of -3.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CTRA's fundamental strength across five key dimensions:
Efficiency Score
WeakCTRA struggles to generate sufficient returns from assets.
Valuation Score
ModerateCTRA shows balanced valuation metrics.
Growth Score
WeakCTRA faces weak or negative growth trends.
Financial Health Score
ExcellentCTRA maintains a strong and stable balance sheet.
Profitability Score
ModerateCTRA maintains healthy but balanced margins.
Key Financial Metrics
Is CTRA Expensive or Cheap?
P/E Ratio
CTRA trades at 14.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CTRA's PEG of 3.76 indicates potential overvaluation.
Price to Book
The market values Coterra Energy Inc. at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.44 times EBITDA. This is generally considered low.
How Well Does CTRA Make Money?
Net Profit Margin
For every $100 in sales, Coterra Energy Inc. keeps $23.47 as profit after all expenses.
Operating Margin
Core operations generate 30.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.63 in profit for every $100 of shareholder equity.
ROA
Coterra Energy Inc. generates $6.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Coterra Energy Inc. generates strong operating cash flow of $3.67B, reflecting robust business health.
Free Cash Flow
Coterra Energy Inc. generates strong free cash flow of $1.44B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
CTRA converts 6.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CTRA Stacks Against Its Sector Peers
| Metric | CTRA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.40 | 20.19 | Better (Cheaper) |
| ROE | 11.63% | 1019.00% | Weak |
| Net Margin | 23.47% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.28 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.02 | 4.60 | Neutral |
| ROA | 6.86% | -11655350.00% (disorted) | Weak |
CTRA 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 Coterra Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.02%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-7.83%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
8.26%
Industry Style: Cyclical, Value, Commodity
Growing