Analysts have revised the consensus EPS estimate for Coterra Energy (NYSE:CTRA) upward by 11.7% over the past 30 days, indicating potential market optimism.
The company’s price-to-earnings (P/E) ratio stands at approximately 17.13, with a price-to-sales ratio of about 3.89, suggesting a moderate valuation compared to industry standards.
Coterra Energy maintains a conservative capital structure, highlighted by a debt-to-equity ratio of 0.18 and a current ratio of 1.61, reflecting financial stability.
Coterra Energy, listed on the NYSE as CTRA, is a prominent player in the energy sector. The company is set to release its fourth-quarter earnings on February 24, 2025. Analysts expect earnings per share (EPS) to be $0.42, with projected revenues of $1.4 billion. These figures reflect a decline compared to the previous year, with EPS down by 19.2% and revenues decreasing by 12.3%.
Despite these declines, there is a positive shift in analysts’ expectations, as highlighted by Zacks Investment Research. Over the past 30 days, the consensus EPS estimate has been revised upward by 11.7%. This trend is significant as it often correlates with short-term stock price movements, suggesting potential optimism in the market.
Coterra Energy’s financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 17.13, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 3.89, reflecting the market’s valuation of its revenue. These ratios suggest a moderate valuation compared to industry standards.
The company’s enterprise value to sales ratio stands at around 4.17, and its enterprise value to operating cash flow ratio is approximately 7.75. These figures indicate how the market values Coterra’s total worth relative to its sales and cash flow from operations. With an earnings yield of 5.84%, the company provides a return on investment based on its earnings.
Coterra Energy maintains a conservative capital structure, with a debt-to-equity ratio of 0.18. This low ratio indicates a cautious use of debt, which can be favorable in uncertain market conditions. Additionally, the current ratio of 1.61 suggests that Coterra has a solid ability to cover its short-term liabilities with its short-term assets, reflecting financial stability.
