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CTRA Stock Analysis - Coterra Energy Inc. AI Rating

CTRA NYSE Crude Petroleum & Natural Gas DE CIK: 0000858470
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG BUY
82% Confidence

📊 CTRA Key Takeaways

Revenue: $7.6B
Net Margin: 22.5%
Free Cash Flow: $4.0B
Current Ratio: 1.19x
Debt/Equity: 0.26x
EPS: $2.24
AI Rating: STRONG BUY with 82% confidence

Investment Thesis

Coterra Energy demonstrates exceptional financial health with industry-leading profitability metrics (32.1% operating margin, 22.5% net margin) and exceptional cash generation (52.6% FCF margin, $4.0B operating cash flow). The company maintains a fortress balance sheet with conservative leverage (0.26x debt/equity), strong interest coverage (129.1x), and substantial free cash flow generation despite modest revenue growth of 4.8% YoY.

CTRA Strengths

  • + Exceptional operating leverage with 32.1% operating margin and 22.5% net margin, among the highest in the energy sector
  • + Fortress balance sheet with low leverage (0.26x debt/equity ratio) and exceptional interest coverage of 129.1x enabling financial flexibility
  • + Outstanding cash generation with $4.0B operating cash flow and 52.6% FCF margin providing capital allocation optionality
  • + Healthy liquidity position with 1.19x current ratio and $114.0M cash reserves
  • + Strong earnings per share growth of 49.3% YoY despite modest revenue growth, indicating operational efficiency gains
  • + Positive insider activity with 20 Form 4 filings in last 90 days suggesting management confidence

CTRA Risks

  • ! Revenue growth of only 4.8% YoY is modest, indicating limited top-line expansion in the current commodity environment
  • ! Reliance on volatile commodity prices (oil and natural gas) creates earnings volatility and macroeconomic sensitivity
  • ! Capital expenditure data unavailable, limiting visibility into growth investments and reserve replacement rates in upstream operations
  • ! Current ratio of 1.19x is adequate but not exceptionally strong, warranting monitoring of working capital management
  • ! Commodity price cyclicality could compress margins significantly if oil and gas prices decline materially

Key Metrics to Watch

CTRA Financial Metrics

Revenue
$7.6B
Net Income
$1.7B
EPS (Diluted)
$2.24
Free Cash Flow
$4.0B
Total Assets
$24.2B
Cash Position
$114.0M

💡 AI Analyst Insight

The 52.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.

CTRA Profitability Ratios

Gross Margin N/A
Operating Margin 32.1%
Net Margin 22.5%
ROE 11.6%
ROA 7.1%
FCF Margin 52.6%

CTRA vs Energy Sector

How Coterra Energy Inc. compares to Energy sector averages

Net Margin
CTRA 22.5%
vs
Sector Avg 12.0%
CTRA Sector
ROE
CTRA 11.6%
vs
Sector Avg 14.0%
CTRA Sector
Current Ratio
CTRA 1.2x
vs
Sector Avg 1.3x
CTRA Sector
Debt/Equity
CTRA 0.3x
vs
Sector Avg 0.6x
CTRA Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CTRA Balance Sheet & Liquidity

Current Ratio
1.19x
Quick Ratio
1.16x
Debt/Equity
0.26x
Debt/Assets
38.8%
Interest Coverage
129.05x
Long-term Debt
$3.8B

CTRA 5-Year Financial Trend

CTRA 5-year financial data: Year 2021: Revenue $3.7B, Net Income $681.0M, EPS $1.63. Year 2022: Revenue $9.5B, Net Income $201.0M, EPS $0.50. Year 2023: Revenue $9.5B, Net Income $1.2B, EPS $2.29. Year 2024: Revenue $9.5B, Net Income $4.1B, EPS $5.08. Year 2025: Revenue $7.3B, Net Income $1.6B, EPS $2.13.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
52.6%
Free cash flow / Revenue

CTRA Quarterly Performance

Quarterly financial performance data for Coterra Energy Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $1.2B $209.0M $0.27

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CTRA Capital Allocation

Operating Cash Flow
$4.0B
Cash generated from operations
Stock Buybacks
$141.0M
Shares repurchased (TTM)
Dividends Paid
$680.0M
Returned to shareholders

CTRA SEC Filings

Access official SEC EDGAR filings for Coterra Energy Inc. (CIK: 0000858470)

📋 Recent SEC Filings

Date Form Document Action
Feb 27, 2026 10-K cog-20251231.htm View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772148232.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772148224.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772148218.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772148213.xml View →

Frequently Asked Questions about CTRA

What is the AI rating for CTRA?

Coterra Energy Inc. (CTRA) has an AI rating of STRONG BUY with 82% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CTRA's key strengths?

Exceptional operating leverage with 32.1% operating margin and 22.5% net margin, among the highest in the energy sector. Fortress balance sheet with low leverage (0.26x debt/equity ratio) and exceptional interest coverage of 129.1x enabling financial flexibility.

What are the risks of investing in CTRA?

Revenue growth of only 4.8% YoY is modest, indicating limited top-line expansion in the current commodity environment. Reliance on volatile commodity prices (oil and natural gas) creates earnings volatility and macroeconomic sensitivity.

What is CTRA's revenue and growth?

Coterra Energy Inc. reported revenue of $7.6B.

Does CTRA pay dividends?

Coterra Energy Inc. pays dividends, with $680.0M 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 $2.24.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI