Coterra Energy, Inc. (COG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chesapeake Energy Corp.

Coterra Energy, Inc.

Matador Resources Co.

Chord Energy Corp.

Exxon Mobil Corp.

APA Corp.

Civitas Resources, Inc.

Hess Corp.

Chevron Corp.

Southwestern Energy Co.

Denbury, Inc.

Why is Coterra Energy, Inc. ?

High Management Efficiency with a high ROCE of 18.16%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.66 times

Healthy long term growth as Net Sales has grown by an annual rate of 33.33% and Operating profit at 40.58%

With ROCE of 9.57%, it has a expensive valuation with a 1.40 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.78%, its profits have risen by 1.9% ; the PEG ratio of the company is 15.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Coterra Energy, Inc. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Coterra Energy, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Coterra Energy, Inc.

6.67%

-0.11

30.96%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.33%

EBIT Growth (5y)

40.58%

EBIT to Interest (avg)

32.25

Debt to EBITDA (avg)

0.66

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.40

Tax Ratio

17.89%

Dividend Payout Ratio

55.87%

Pledged Shares

Institutional Holding

98.24%

ROCE (avg)

18.16%

ROE (avg)

15.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.51

EV to EBIT

14.60

EV to EBITDA

6.99

EV to Capital Employed

1.40

EV to Sales

4.26

PEG Ratio

15.12

Dividend Yield

1.60%

ROCE (Latest)

9.57%

ROE (Latest)

10.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

NET SALES(HY)

At USD 3,749 MM has Grown at 37.83%

NET PROFIT(HY)

At USD 944.7 MM has Grown at 49.09%

RAW MATERIAL COST(Y)

Fallen by -9.24% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 82.98 times

-10What is not working for the Company

INTEREST(HY)

At USD 106 MM has Grown at 100%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,983.02

DIVIDEND PAYOUT RATIO(Y)

Lowest at 33.02%

DEBT-EQUITY RATIO (HY)

Highest at 28.65 %

Here's what is working for Coterra Energy, Inc.

Net Sales

At USD 3,749 MM has Grown at 37.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Profit

At USD 944.7 MM has Grown at 49.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Inventory Turnover Ratio

Highest at 82.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 579 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Coterra Energy, Inc.

Interest

At USD 106 MM has Grown at 100%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 1,983.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 28.65 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 33.02%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)