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 9.21%, WACC is 5.54%, and the economic spread is 3.67%. On balance, returns on capital just exceed funding costs, implying limited but real value creation at the margin. Supporting metrics show ROE at 12.14% and ROA at 7.00%, 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 14.81, forward P/E of 12.73, PEG of 0.72. 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 1.19, 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 57.83%, operating margin at 33.61%, and free cash flow margin at 22.37%. 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. FCF margins are constructive here, reflecting the company that generate cash reliably after reinvestment requirements. Viewed together, these readings indicate a company that converts revenue into both earnings and cash with discipline.

Where growth and expectations intersect, the estimated 12-month price change of 5.32%, where analyst estimates suggest only incremental upside absent a positive surprise, while TTM revenue growth of 40.43% suggesting the company is collectively capturing meaningful market share or pricing power. The projected 12-month EPS growth rate of 16.3% is a standout component of the forward case — meaningful earnings expansion at this scale typically warrants attention from growth-oriented investors. Both signals are useful lenses, but they tend to diverge most sharply near inflection points in both business fundamentals and market sentiment. The durability of both the operating trend and analyst optimism will determine whether the current setup translates into measurable near-term returns. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Putting all the pieces together, the fundamental picture is one of the more convincing setups in these metrics — strong capital returns, reasonable pricing, and a healthy forward outlook.

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.