Coterra Energy Inc
Exchange: NYSESector: EnergyIndustry: Oil & Gas E&P
Coterra is a premier exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale and Anadarko Basin. We strive to be a leading producer, delivering returns with a commitment to sustainability leadership.
Did you know?
Free cash flow has been growing at 16.3% annually.
Current Price
$34.56
+1.89%GoodMoat Value
$85.01
146.0% undervaluedProfile
Valuation (TTM)
Market Cap$26.31B
P/E15.33
EV$29.43B
P/B1.77
Shares Out761.38M
P/Sales3.44
Revenue$7.64B
EV/EBITDA6.20
Coterra Energy Inc (CTRA) Stock Analysis
GoodMoat Analysis
Coterra Energy is a large, profitable oil and gas producer with a strong balance sheet and attractive cash flow. While its moat is limited by the commodity nature of its business, it trades at a significant discount to the GoodMoat target price, suggesting a potentially favourable valuation.
Read full analysis
Coterra Energy is an independent exploration and production (E&P) company operating in the Permian Basin and other major U.S. shale plays. Its business is extracting and selling oil and natural gas, making its financial performance heavily tied to commodity prices. The company exhibits strong operational quality, with a robust 32.1% operating margin, a 22.5% profit margin, and a healthy ROE of 11.6%. Its balance sheet is solid, with a low debt-to-equity ratio of 0.26, and it generates a free cash flow yield of 6.1%. Applying the GoodMoat framework, Coterra's moat score is likely low. The E&P sector is highly competitive with low switching costs and few durable advantages beyond operational scale and cost efficiency, which are difficult to score highly on the 14-point moat criteria. However, the company passes the initial quality gate with strong profitability and financial health. The most compelling aspect is the valuation. The stock trades at a P/E of 15.6x and a price of $35.18, which is a 59% discount to the GoodMoat target of $85.01. This suggests a significant margin of safety, placing it in the 'Deeply Undervalued' band per the framework's DCF bands. For a value investor, this represents a classic scenario: a financially sound business in a cyclical industry priced at a deep discount to estimated intrinsic value, warranting further investigation into the sustainability of its cash flows and the commodity price assumptions behind the target. Analysis based on data as of 2024-05-15.
Market Cap$26.31B
Current Price$34.56
P/E Ratio15.33
Forward P/E—
PEG Ratio0.77
EPS$2.24
Book Value$19.49
P/B Ratio1.77
CTRA Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 16.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 3.7B
Revenue
2.1B
FY19
1.5B
FY20
3.4B
FY21
9.1B
FY22
5.9B
FY23
5.5B
FY24
7.6B
FY25
Net Income
681M
FY19
201M
FY20
1.2B
FY21
4.1B
FY22
1.6B
FY23
1.1B
FY24
1.7B
FY25
CTRA 52-Week Range
$21.86
$36.31
50-Day MA: $31.25200-Day MA: $26.16
Did you know?
Free cash flow has been growing at 16.3% annually.
Coterra Energy Inc (CTRA) Financial Summary
Coterra Energy Inc (CTRA) is a Energy company in the Oil & Gas E&P industry, listed on NYSE. The stock currently trades at $34.56 with a market capitalization of $26.31B.
Key valuation metrics include a P/E ratio of 15.33, price-to-book ratio of 1.77, and EPS of $2.24. The company reports a profit margin of 22.5% and return on equity of 11.6%.
CTRA Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $26.31B |
| P/E Ratio | 15.33 |
| EPS | $2.24 |
| P/B Ratio | 1.77 |
| P/S Ratio | 3.44 |
| EV/EBITDA | 6.20 |
| Dividend Yield | 2.59% |
| Profit Margin | 22.5% |
| Return on Equity | 11.6% |
| Debt/Equity | 0.26 |
CTRA Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.07B | $681.00M |
| FY20 | $1.47B | $201.00M |
| FY21 | $3.45B | $1.16B |
| FY22 | $9.05B | $4.07B |
| FY23 | $5.91B | $1.63B |
| FY24 | $5.46B | $1.12B |
| FY25 | $7.64B | $1.72B |
Coterra Energy Inc (CTRA) Valuation
Based on GoodMoat's DCF model, Coterra Energy Inc has a fair value estimate of $85.01. At the current price of $34.56, the stock appears 59.3% undervalued relative to our intrinsic value estimate.
CTRA Quality Indicators
Coterra Energy Inc maintains a profit margin of 22.5% and an operating margin of 32.1%. Return on equity stands at 11.6%. The current ratio is 1.19. Debt-to-equity ratio is 0.26.
About Coterra Energy Inc
Coterra is a premier exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale and Anadarko Basin. We strive to be a leading producer, delivering returns with a commitment to sustainability leadership.
CTRA Free Cash Flow
Coterra Energy Inc generated $1.63B in trailing twelve-month free cash flow, representing an FCF yield of 6.21%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CTRA Shares Outstanding
Coterra Energy Inc has 0.76 billion shares outstanding at a share price of $34.56, giving it a market capitalization of $26.31B.