Fundamental analysis: Coterra Energy Inc. (CTRA)

Awarener score: 7.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Very poor) and growth (Superb), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been growing at an extremely fast pace. It's been more than average in relation to peer companies.
Coterra Energy Inc. business varies frequently, ups and downs are normal. It's risky. It looks worse than most rivals.

Margins score: 9.3

CTRA profit margins -on goods and services sold- are usually good. They stand well ranked against rival companies.
Business profit on sales tends to be huge. It's top tier when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be huge when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 9.6

Coterra Energy Inc. profit -on goods and services sold- has been growing at an excellent pace. It's been a slight improvement compared to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been slightly worse than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares encouraging in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be lacking compared to similar stocks.
In past years, profits -before income taxes- grew at an extremely fast speed. It was slightly better than rivals.
In the previous years, growth trend on total net profit has been extremely high, and similar to peer companies.
Earnings per share have grown at an excellent rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 5.0

CTRA had to pay some income taxes in relation to profits made in the past years. It's been slightly worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.8

Coterra Energy Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.0

CTRA usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands top tier when measured against rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is almost average when measured against industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came better than most competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved rather normal in relation to similar firms.
The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks somewhat worse than comparable companies.
The company has significantly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks weak when measured against competitors.

Balance Sheet score: 6.2

Coterra Energy Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
Usually, sales are mostly on cash. It still ranks top tier when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be top-notch against peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's close to average when compared to similar companies.
Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands well ranked against rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 7.9

Coterra Energy Inc. looks extremely cheap in relation to profits and financial position. It happens to be similar to competitors.
We have not enough data to conclude on the relationship of price versus tangible book value for this company. It remains therefore unknown compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still more than average in relation to industry firms.
In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up in a weak position compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks almost average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
We have not enough information on the relation between current stock price and accounting book value. The company remains a mystery against peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be similar to industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in good shape compared to peer companies.

Total score: 7.5

Company at a glance: Coterra Energy Inc. (CTRA)

Sector, industry: Energy, Oil & Gas E&P

Market Cap: 18.36 billions

Revenues TTM: 8.22 billions

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania. The company also holds Permian Basin properties with approximately 306,000 net acres; and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. As of December 31, 2021, it had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas, and 220,615 thousand barrels of natural gas liquids. The company was incorporated in 1989 and is headquartered in Houston, Texas.