Coterra Energy Return On Equity vs. Current Valuation
| CTRA Stock | USD 26.68 0.10 0.37% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.1245497 | Current Value 0.0676 | Quarterly Volatility 0.12826332 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.59 | 0.4409 |
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For Coterra Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Coterra Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Coterra Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Coterra Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Coterra Energy over time as well as its relative position and ranking within its peers.
Coterra |
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coterra Energy. If investors know Coterra will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coterra Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.19) | Dividend Share 0.83 | Earnings Share 1.65 | Revenue Per Share 7.376 | Quarterly Revenue Growth (0.05) |
The market value of Coterra Energy is measured differently than its book value, which is the value of Coterra that is recorded on the company's balance sheet. Investors also form their own opinion of Coterra Energy's value that differs from its market value or its book value, called intrinsic value, which is Coterra Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coterra Energy's market value can be influenced by many factors that don't directly affect Coterra Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Coterra Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Coterra Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coterra Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Coterra Energy Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Coterra Energy's current stock value. Our valuation model uses many indicators to compare Coterra Energy value to that of its competitors to determine the firm's financial worth. Coterra Energy is rated below average in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about 220,539,951,802 of Current Valuation per Return On Equity. At present, Coterra Energy's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Coterra Energy's earnings, one of the primary drivers of an investment's value.Coterra Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Coterra Energy |
| = | 0.096 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Coterra Energy |
| = | 21.17 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Coterra Current Valuation vs Competition
Coterra Energy is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is currently estimated at about 528.85 Billion. Coterra Energy holds roughly 21.17 Billion in current valuation claiming about 4% of equities under Energy industry.
Coterra Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Coterra Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Coterra Energy will eventually generate negative long term returns. The profitability progress is the general direction of Coterra Energy's change in net profit over the period of time. It can combine multiple indicators of Coterra Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 11 M | 12 M | |
| Operating Income | 2.2 B | 2.3 B | |
| Income Before Tax | 2.1 B | 2.2 B | |
| Total Other Income Expense Net | -26 M | -27.3 M | |
| Net Income | 1.6 B | 1.7 B | |
| Income Tax Expense | 503 M | 528.1 M | |
| Net Interest Income | -26 M | -27.3 M | |
| Net Income From Continuing Ops | 1.6 B | 1.3 B | |
| Net Income Applicable To Common Shares | 4.7 B | 4.9 B | |
| Non Operating Income Net Other | -206.1 K | -216.4 K | |
| Interest Income | 68 M | 44.7 M | |
| Change To Netincome | -52.2 M | -49.6 M | |
| Net Income Per Share | 2.15 | 2.26 | |
| Income Quality | 2.25 | 3.91 | |
| Net Income Per E B T | 0.76 | 0.53 |
Coterra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Coterra Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Coterra Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Coterra Energy's important profitability drivers and their relationship over time.
Use Coterra Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Coterra Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Coterra Energy will appreciate offsetting losses from the drop in the long position's value.Coterra Energy Pair Trading
Coterra Energy Pair Trading Analysis
The ability to find closely correlated positions to Coterra Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Coterra Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Coterra Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Coterra Energy to buy it.
The correlation of Coterra Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Coterra Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Coterra Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Coterra Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Coterra Energy position
In addition to having Coterra Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
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Check out Trending Equities. For information on how to trade Coterra Stock refer to our How to Trade Coterra Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Coterra Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Coterra Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Coterra Energy's income statement, its balance sheet, and the statement of cash flows.