CTRA Coterra Energy Inc

Coterra Energy is an oil and gas exploration and production company with core positions in the Permian Basin, Marcellus Shale, and Anadarko Basin. Sector: Energy.

Coterra Energy Inc (CTRA) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On the question of capital productivity, ROIC is 8.85%, WACC is 5.63%, and the economic spread is 3.22%. On balance, returns on capital just exceed funding costs, implying limited but real value creation at the margin. Supporting metrics show ROE at 11.36% and ROA at 6.55%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

From a market pricing perspective, trailing P/E of 14.87, forward P/E of 11.47, PEG of 0.71. With trailing and forward P/E closely aligned, the market appears to be pricing the company on the assumption that earnings remain broadly stable near term. The PEG ratio suggests the market may be underpricing the company's growth trajectory relative to its current multiple. The company carries an aggregate current ratio of 1.01, pointing to constrained near-term balance sheet coverage. The overall valuation picture is one where the market is paying for a specific earnings and growth outcome — and where any deviation from that path would likely pressure multiples.

The margin stack reads as follows: gross margin sits at 57.54%, operating margin at 31.95%, and free cash flow margin at 26.28%. The gross margin reading points to the company with solid but not outsized pricing power relative to direct costs. At this level, operating margins reflect businesses with genuine scalability and above-average cost control. The company's FCF margin is a standout — reflecting businesses where accounting profits translate cleanly into real cash generation. Viewed together, these readings indicate a company that converts revenue into both earnings and cash with discipline.

Looking at what the underlying business is delivering operationally, TTM revenue growth of 2.26% indicating muted but still positive top-line momentum across the company. The projected 12-month EPS growth rate of 29.6% is a standout component of the forward case — meaningful earnings expansion at this scale typically warrants attention from growth-oriented investors. Top-line momentum is the clearest available signal here, reflecting underlying business activity before any forward-looking assumptions are layered on. Whether this revenue momentum sustains will depend as much on the macro backdrop as on the capacity of the underlying business to continue executing.

The overall evidence base is constructive, with more signals pointing up than down and no obvious structural impairment to the forward case.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.