📊 CTRA Key Takeaways
Is Coterra Energy Inc. (CTRA) a Good Investment?
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.
Coterra Energy shows strong core fundamentals, with high operating profitability, solid net margins, and exceptionally strong cash generation relative to revenue. The balance sheet is conservatively levered and interest coverage is extremely strong, but flat net income growth and the inherently cyclical nature of oil and gas fundamentals keep the outlook below the highest conviction tier.
Why Buy Coterra Energy Inc. Stock? CTRA 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
- 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
- Strong profitability profile with 32.1% operating margin and 22.5% net margin
- Excellent cash generation, with $4.02B in operating cash flow and a 52.6% free cash flow margin
- Healthy financial structure with low debt-to-equity of 0.26x and very high interest coverage of 129.1x
CTRA Stock Risks: Coterra Energy Inc. Investment 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
- Net income growth was essentially flat year over year despite higher revenue, which may indicate limited earnings leverage
- Low cash balance of $114M reduces near-term liquidity flexibility compared with total balance sheet size
- Fundamentals remain exposed to commodity price volatility and capital intensity inherent in upstream energy
Key Metrics to Watch
- Quarterly revenue trends and commodity price exposure to assess growth sustainability
- Capital expenditure levels and reserve replacement ratios to evaluate long-term production sustainability
- Operating cash flow conversion and free cash flow generation relative to debt reduction and capital returns
- Debt levels and leverage ratios as commodity prices fluctuate to ensure financial stability maintenance
- Production volumes and reserve life to assess long-term asset depletion and business sustainability
- Operating cash flow and free cash flow sustainability
- Net income margin and production-driven revenue growth
Coterra Energy Inc. (CTRA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 52.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CTRA Profit Margin, ROE & Profitability Analysis
CTRA vs Energy Sector: How Coterra Energy Inc. Compares
How Coterra Energy Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Coterra Energy Inc. Stock Overvalued? CTRA Valuation Analysis 2026
Based on fundamental analysis, Coterra Energy Inc. appears fundamentally strong relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Coterra Energy Inc. Balance Sheet: CTRA Debt, Cash & Liquidity
CTRA Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
CTRA Quarterly Earnings & Performance
| 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.
Coterra Energy Inc. Dividends, Buybacks & Capital Allocation
CTRA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Coterra Energy Inc. (CIK: 0000858470)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTRA
What is the AI rating for CTRA?
Coterra Energy Inc. (CTRA) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 83% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTRA's key strengths?
Claude: 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. ChatGPT: Strong profitability profile with 32.1% operating margin and 22.5% net margin. Excellent cash generation, with $4.02B in operating cash flow and a 52.6% free cash flow margin.
What are the risks of investing in CTRA?
Claude: 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. ChatGPT: Net income growth was essentially flat year over year despite higher revenue, which may indicate limited earnings leverage. Low cash balance of $114M reduces near-term liquidity flexibility compared with total balance sheet size.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CTRA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Coterra Energy Inc. has a BUY rating with 83% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CTRA stock overvalued or undervalued?
Valuation metrics for CTRA: ROE of 11.6% (sector avg: 14%), net margin of 22.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CTRA stock in 2026?
Our dual AI analysis gives Coterra Energy Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CTRA's free cash flow?
Coterra Energy Inc.'s operating cash flow is $4.0B, with capital expenditures of N/A. FCF margin is 52.6%.
How does CTRA compare to other Energy stocks?
Vs Energy sector averages: Net margin 22.5% (avg: 12%), ROE 11.6% (avg: 14%), current ratio 1.19 (avg: 1.3).