📊 CTRA Key Takeaways
Is Coterra Energy Inc. (CTRA) a Good Investment?
Coterra Energy demonstrates exceptional profitability with 33.2% operating margins and strong free cash flow generation of $1.6B (84.5% FCF margin), supported by a conservative balance sheet with 0.23x debt/equity and 34.0x interest coverage. However, the investment is constrained by anemic revenue growth of 4.8% YoY, essentially flat net income growth (+0.1%), and weak capital returns (ROE 3.1%, ROA 1.9%), suggesting a mature, cash-generative business with limited growth prospects.
Coterra Energy shows strong core fundamentals, with high operating profitability, solid net margins, and exceptionally strong cash generation relative to revenue. The balance sheet is conservatively levered and interest coverage is extremely strong, but flat net income growth and the inherently cyclical nature of oil and gas fundamentals keep the outlook below the highest conviction tier.
Why Buy Coterra Energy Inc. Stock? CTRA Key Strengths
- Exceptional operating margin of 33.2% and net margin of 23.9% reflecting high-quality earnings
- Outstanding free cash flow generation of $1.6B with 84.5% FCF-to-revenue conversion; 34.0x interest coverage ratio indicates fortress balance sheet
- Conservative leverage profile with 0.23x debt/equity ratio and $485M cash reserves providing financial flexibility
- Strong EPS growth of 49.3% YoY despite flat net income, suggesting disciplined capital allocation via share repurchases
- Strong profitability profile with 32.1% operating margin and 22.5% net margin
- Excellent cash generation, with $4.02B in operating cash flow and a 52.6% free cash flow margin
- Healthy financial structure with low debt-to-equity of 0.26x and very high interest coverage of 129.1x
CTRA Stock Risks: Coterra Energy Inc. Investment Risks
- Stagnant revenue growth (+4.8% YoY) and near-flat net income (+0.1% YoY) indicate limited organic expansion in core business
- Critically tight liquidity position with current ratio of 1.01x and quick ratio of 0.99x provides minimal working capital cushion for operational stress
- Extremely weak capital returns (ROE 3.1%, ROA 1.9%) suggest substantial equity and asset base generating inadequate returns for shareholders
- Commodity price exposure and regulatory/energy transition risks inherent to upstream oil & gas operations
- Net income growth was essentially flat year over year despite higher revenue, which may indicate limited earnings leverage
- Low cash balance of $114M reduces near-term liquidity flexibility compared with total balance sheet size
- Fundamentals remain exposed to commodity price volatility and capital intensity inherent in upstream energy
Key Metrics to Watch
- Revenue growth trajectory and year-over-year percentage change in the next reporting period
- Absolute net income growth and net margin sustainability amid commodity price volatility
- Free cash flow generation and actual capital expenditure trends (current data shows FCF = OCF, requiring clarification)
- Current and quick ratio trends to assess working capital adequacy and financial flexibility
- Operating cash flow and free cash flow sustainability
- Net income margin and production-driven revenue growth
Coterra Energy Inc. (CTRA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 84.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CTRA Profit Margin, ROE & Profitability Analysis
CTRA vs Energy Sector: How Coterra Energy Inc. Compares
How Coterra Energy Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Coterra Energy Inc. Stock Overvalued? CTRA Valuation Analysis 2026
Based on fundamental analysis, Coterra Energy Inc. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Coterra Energy Inc. Balance Sheet: CTRA Debt, Cash & Liquidity
CTRA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Coterra Energy Inc.'s revenue has grown significantly by 99% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.13 reflects profitable operations.
CTRA Revenue Growth, EPS Growth & YoY Performance
CTRA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.0B | $466.0M | $0.61 |
| Q3 2025 | $1.3B | $220.0M | $0.34 |
| Q2 2025 | $1.3B | $220.0M | $0.29 |
| Q1 2025 | $1.4B | $352.0M | $0.47 |
| Q3 2024 | $1.3B | $209.0M | $0.34 |
| Q2 2024 | $1.2B | $209.0M | $0.27 |
| Q1 2024 | $1.4B | $352.0M | $0.47 |
| Q3 2023 | $1.4B | $209.0M | $0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Coterra Energy Inc. Dividends, Buybacks & Capital Allocation
CTRA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Coterra Energy Inc. (CIK: 0000858470)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTRA
What is the AI rating for CTRA?
Coterra Energy Inc. (CTRA) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTRA's key strengths?
Claude: Exceptional operating margin of 33.2% and net margin of 23.9% reflecting high-quality earnings. Outstanding free cash flow generation of $1.6B with 84.5% FCF-to-revenue conversion; 34.0x interest coverage ratio indicates fortress balance sheet. ChatGPT: Strong profitability profile with 32.1% operating margin and 22.5% net margin. Excellent cash generation, with $4.02B in operating cash flow and a 52.6% free cash flow margin.
What are the risks of investing in CTRA?
Claude: Stagnant revenue growth (+4.8% YoY) and near-flat net income (+0.1% YoY) indicate limited organic expansion in core business. Critically tight liquidity position with current ratio of 1.01x and quick ratio of 0.99x provides minimal working capital cushion for operational stress. ChatGPT: Net income growth was essentially flat year over year despite higher revenue, which may indicate limited earnings leverage. Low cash balance of $114M reduces near-term liquidity flexibility compared with total balance sheet size.
What is CTRA's revenue and growth?
Coterra Energy Inc. reported revenue of $1.9B.
Does CTRA pay dividends?
Coterra Energy Inc. pays dividends, with $169.0M distributed to shareholders in the trailing twelve months.
Where can I find CTRA SEC filings?
Official SEC filings for Coterra Energy Inc. (CIK: 0000858470) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTRA's EPS?
Coterra Energy Inc. has a diluted EPS of $0.61.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CTRA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Coterra Energy Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CTRA stock overvalued or undervalued?
Valuation metrics for CTRA: ROE of 3.1% (sector avg: 14%), net margin of 23.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CTRA stock in 2026?
Our dual AI analysis gives Coterra Energy Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CTRA's free cash flow?
Coterra Energy Inc.'s operating cash flow is $1.6B, with capital expenditures of N/A. FCF margin is 84.5%.
How does CTRA compare to other Energy stocks?
Vs Energy sector averages: Net margin 23.9% (avg: 12%), ROE 3.1% (avg: 14%), current ratio 1.01 (avg: 1.3).