April 19, 2025 a 03:31 pm
CTRA: Dividend Analysis - Coterra Energy Inc.
Coterra Energy Inc.'s dividend profile is marked by a steady history but presents modest growth in recent years. The company's payout ratios suggest a balanced approach between rewarding shareholders and retaining capital for internal use. Although there's slight negative growth over the last few years, the company's long-standing history of dividend payments provides reassurance about its ongoing commitments to investors.
📊 Overview
Understanding the key factors of Coterra Energy Inc. provides insights into its dividend profiling and attractiveness. Below is an overview table:
| Data Point | Value |
|---|---|
| Sector | Energy |
| Dividend Yield | 3.18% |
| Current Dividend per Share | $0.842 |
| Dividend History | 36 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The company's extensive dividend history emphasizes its long-term commitment to rewarding shareholders. Significant past payouts highlight the reliability, with slight downturns reflecting broader economic challenges. Illustrated below is the company's historical payout trend:
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $0.22 |
| 2024 | $0.84 |
| 2023 | $1.17 |
| 2022 | $2.49 |
| 2021 | $1.12 |
📈 Dividend Growth
Analysis of dividend growth is crucial in estimating future payout scenarios. The history indicates minor contraction over the last three years, but a moderate stability is depicted over a five-year period.
| Time | Growth |
|---|---|
| 3 years | -9.14% |
| 5 years | 19.14% |
The average dividend growth is 19.14% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio measures the proportion of earnings paid to shareholders, an important indicator of dividend sustainability. Coterra's ratios suggest a decent cushion to maintain or potentially increase dividends while fulfilling other financial responsibilities.
| Key Figure | Ratio |
|---|---|
| EPS-based | 55.30% |
| Free cash flow-based | 44.08% |
The EPS-based ratio of 55.30% and the FCF-based ratio of 44.08% indicate a conservative approach, providing a buffer for unexpected economic downturns.
📊 Cashflow & Capital Efficiency
Analyzing cashflow dynamics is imperative for understanding a firm's operational strength. Coterra's strong free cash flow yield and other metrics indicate its capacity to generate cash, fund operations, and maintain its dividend commitments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 14.75% | 8.08% | 19.15% |
| Earnings Yield | 5.91% | 8.42% | 20.78% |
| CAPEX to Operating Cash Flow | 0% | 57.38% | 31.34% |
| Stock Compensation to Revenue | 3.45% | 1.04% | 0.81% |
| Free Cash Flow/Operating Cash Flow Ratio | 100% | 42.62% | 68.65% |
The consistent cash flow generation and efficient capital usage hint at Coterra's robust operational framework, enabling it to sustain and enhance shareholder returns.
📊 Balance Sheet & Leverage Analysis
Balance sheet analysis reveals the underlying financial health and leverage of Coterra Energy Inc., essential for assessing the firm's ability to meet obligations and continue dividend payments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.29 | 0.19 | 0.18 |
| Debt-to-Assets | 0.18 | 0.12 | 0.11 |
| Debt-to-Capital | 0.22 | 0.16 | 0.15 |
| Net Debt to EBITDA | 0.54 | 0.41 | 0.24 |
| Current Ratio | 2.92 | 1.21 | 1.85 |
| Quick Ratio | 2.88 | 1.18 | 1.80 |
| Financial Leverage | 1.65 | 1.56 | 1.59 |
The company's stable leverage ratios and liquidity metrics suggest financial health conducive to upholding dividend policies without undue risk.
📊 Fundamental Strength & Profitability
Profitability metrics underpin the firm's core financial performance. Evaluating these provides insight into resource efficiency and profit-generation capabilities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.54% | 12.45% | 32.11% |
| Return on Assets | 5.18% | 7.96% | 20.17% |
| Net Margin | 63.33% | 28.59% | 44.91% |
| EBIT Margin | 81.98% | 39.04% | 58.36% |
| EBITDA Margin | 185.93% | 67.59% | 75.95% |
| Gross Margin | 44.86% | 44.09% | 66.30% |
| R&D to Revenue | 0 | 0 | 0 |
Coterra's consistency in profitability metrics reflects its strategic prowess in resource utilization, positioning it well to fulfill shareholder expectations through dividends.
🗣️ Price Development
🎯 Dividend Scoring System
This detailed scoring system evaluates Coterra's standing in dividend-related categories. The scores provide a quantitative snapshot of its dividend potential.
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 2 | |
| Payout Ratio | 3 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
🧐 Rating & Recommendation
Coterra Energy Inc. exhibits a strong inclination towards shareholder returns through dividends, blending stability with notable growth potential. Though modest in recent expansion, the established dividend continuity and financial standing render it an attractive consideration for dividend-seeking investors.