10Y annualized return is
negative
at -2.8% per year
CTRA has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Attractive Price-to-Earnings Ratio
Reasonable Price-to-Book Ratio
Strong Profit Margins
Healthy Return on Equity
Strong Liquidity Ratios
Low Debt Levels
Strong Financial Performance
Flexibility in Capital Allocation
Successful Acquisitions
Robust Growth Outlook
Innovations in Operational Efficiency
Strong Market Positioning
High Price-to-Sales Ratio
Elevated EV/EBITDA
Moderate Operating Profit Margin
Moderate Interest Coverage
Caution in Gas Market
Coterra Energy demonstrates a strong business quality with effective financial management, operational flexibility, and successful integration of recent acquisitions. Future prospects appear promising with expected growth, operational innovations, and strategic positioning in the gas market, though caution remains regarding market fluctuations.
Analysis Date: February 25, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Coterra Energy Inc. is a company that finds and produces oil and natural gas in the United States. They mainly work in areas called the Marcellus Shale in Pennsylvania and the Permian Basin in Texas. Coterra sells the oil and gas they produce to different customers, including factories and power plants. In simple terms, they help provide energy that powers our homes and businesses.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$58.64
Current Market Price: $26.08
IV/P Ratio: 2.25x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
56.00000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CTRA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (16.49)
P/B ratio ≤ 1.5 (1.37)
Current ratio ≥ 2.0 (2.92x)
Long-term debt < Net current assets (1.68x)
Margin of safety (56.00000000000001%)
CTRA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.52%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
35.27%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
24.62%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
CTRA boasts a net profit margin of 24.62%, indicating effective cost control and a strong ability to convert sales into actual profit.
A return on equity (ROE) of 8.52% demonstrates that the company efficiently uses shareholder equity to generate profits.
While the operating profit margin is robust at 29.63%, it is not exceptionally high compared to industry leaders, suggesting room for improvement.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.28x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.92x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
CTRA has a current ratio of 2.92 and a quick ratio of 2.88, indicating excellent short-term liquidity and the ability to cover liabilities.
With a debt-to-equity ratio of 0.28, CTRA maintains a conservative approach to leverage, minimizing financial risk.
An interest coverage ratio of 11.73, while healthy, suggests that the company could face challenges if earnings decline significantly.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Coterra Energy achieved production levels above the high end of guidance, with a free cash flow return of 61% in Q4 2024 and 89% for the full year. This indicates strong capital efficiency and effective cash management.
Coterra maintains flexibility to pivot and reallocate capital based on market conditions, which allows for a responsive approach to changes in oil and gas prices.
The integration of Franklin Mountain and Avant acquisitions is expected to optimize capital and operational efficiency, enhancing the company's asset base.
Coterra anticipates 5% or greater oil volume growth from 2025 to 2027 and is prepared to increase Marcellus activity if gas market conditions continue to improve.
The company has achieved significant reductions in capital costs through longer lateral drilling and improved frac designs, allowing for more efficient use of capital.
Coterra is well-positioned to take advantage of improving natural gas market dynamics, with a focus on maximizing gas sales and exploring new markets.
Despite the positive outlook, management emphasizes a cautious approach to ramping up activity in the gas market, indicating uncertainty remains.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insider buying and selling are relatively balanced (ratio: 0.99x)
Total Bought
Total value of insider purchases in recent quarters
$3171478
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
$3197781
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
24
High insider activity
Recent Trend
Change in insider trading pattern
CTRA: No trend data available