Coterra Energy Price To Book vs. Current Valuation

CTRA Stock  USD 25.63  0.54  2.06%   
Based on the key profitability measurements obtained from Coterra Energy's financial statements, Coterra Energy is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Coterra Energy's ability to earn profits and add value for shareholders. At present, Coterra Energy's Days Sales Outstanding is projected to increase significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 3.87, whereas Price To Sales Ratio is forecasted to decline to 3.22. At present, Coterra Energy's Accumulated Other Comprehensive Income is projected to decrease significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 2.3 B, whereas Total Other Income Expense Net is forecasted to decline to (27.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.590.4409
Significantly Up
Very volatile
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.
  
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For information on how to trade Coterra Stock refer to our How to Trade Coterra Stock guide.
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. Price To Book 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 price to book category among its peers. It is rated below average in current valuation category among its peers reporting about  14,023,962,731  of Current Valuation per Price To Book. 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. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Coterra Energy

P/B

 = 

MV Per Share

BV Per Share

 = 
1.48 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
20.74 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 559.36 Billion. Coterra Energy holds roughly 20.74 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income11 M12 M
Operating Income2.2 B2.3 B
Income Before Tax2.1 B2.2 B
Total Other Income Expense Net-26 M-27.3 M
Net Income1.6 B1.7 B
Income Tax Expense503 M528.1 M
Net Interest Income-26 M-27.3 M
Net Income From Continuing Ops1.6 B1.3 B
Net Income Applicable To Common Shares4.7 B4.9 B
Non Operating Income Net Other-206.1 K-216.4 K
Interest Income68 M44.7 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.
Pair CorrelationCorrelation Matching

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 Impulse Thematic Idea Now

Impulse
Impulse Theme
Large corporations operating in retail, broadcasting, energy, airlines and telecom sectors. The Impulse theme has 49 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 Impulse Theme or any other thematic opportunities.
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When determining whether Coterra Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Coterra Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Coterra Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Coterra Energy Stock:
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For information on how to trade Coterra Stock refer to our How to Trade Coterra Stock guide.
You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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.
Potential Coterra Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Coterra Energy investors may work on each financial statement separately, they are all related. The changes in Coterra Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Coterra Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.