May 29, 2025 a 12:46 pm
CTRA: Dividend Analysis - Coterra Energy Inc.
Coterra Energy Inc. (CTRA) presents a compelling dividend profile, characterized by a steady yield of 3.48% and an extensive history of 36 years of dividend payments. Although recent growth rates indicate slight volatility, the company maintains a robust payout strategy. With a modest payout ratio and strong credit metrics, Coterra appears solid, yet investors should be aware of recent dividend adjustments.
📊 Overview
Coterra Energy operates within the energy sector, providing investors with a current dividend yield of 3.48%. The company has sustained dividend payouts for 36 years but has recently refrained from increases.
| Attribute | Details |
|---|---|
| Sector | Energy |
| Dividend yield | 3.48% |
| Current dividend per share | $0.84 |
| Dividend history | 36 years |
| Last cut or suspension | None |
🗣️ Dividend History
Coterra Energy boasts a long-standing history with dividends, indicating shareholder commitment. Analyzing these trends is essential to understanding their payout reliability.
| Year | Dividend per share (USD) |
|---|---|
| 2025 | 0.44 |
| 2024 | 0.84 |
| 2023 | 1.17 |
| 2022 | 2.49 |
| 2021 | 1.12 |
📈 Dividend Growth
The assessment of dividend growth provides insights into potential income acceleration and inflation hedging. However, Coterra's recent growth shows signs of modest improvements.
| Time | Growth |
|---|---|
| 3 years | -0.09% |
| 5 years | 0.19% |
The average dividend growth is 0.19% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios serve as a key indicator of dividend sustainability. Coterra maintains prudent payout levels, indicating stability in its financial operations.
| Key figure | Ratio |
|---|---|
| EPS-based | 49.56% |
| Free cash flow-based | 50.98% |
The EPS payout ratio of 49.56% and FCF payout ratio of 50.98% imply a balanced approach to returning capital to shareholders while retaining earnings.
📊 Cashflow & Capital Efficiency
An analysis of cash flow metrics reveals significant operational health. Consistency in cash flow enables sustainable dividends even amid market fluctuations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.40% | 8.08% | 19.15% |
| Earnings Yield | 5.92% | 8.42% | 20.78% |
| CAPEX to Operating Cash Flow | 63.36% | 57.38% | 31.34% |
| Stock-based Compensation to Revenue | 1.12% | 1.04% | 0.77% |
| Free Cash Flow / Operating Cash Flow Ratio | 36.64% | 42.62% | 68.66% |
The trend in cash flow metrics highlights Coterra's capability to fund dividends from strong operational cash flows ensuring capital efficiency.
⚖️ Balance Sheet & Leverage Analysis
Examining leverage and liquidity is crucial for assessing a company's financial resilience. Coterra's financial structure shows a healthy balance.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.29 | 0.19 | 0.21 |
| Debt-to-Assets | 0.18 | 0.12 | 0.13 |
| Debt-to-Capital | 0.22 | 0.16 | 0.17 |
| Net Debt to EBITDA | 0.54 | 0.41 | 0.28 |
| Current Ratio | 2.92 | 1.21 | 1.85 |
| Quick Ratio | 2.88 | 1.18 | 1.80 |
| Financial Leverage | 1.65 | 1.56 | 1.59 |
Strong liquidity ratios and manageable debt levels underscore Coterra's financial soundness and ability to navigate varying economic conditions.
💹 Fundamental Strength & Profitability
Core financial performance markers reflect intrinsic company value. Coterra showcases solid profitability ratios contributing to its competitive stance.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.54% | 12.45% | 32.11% |
| Return on Assets | 5.18% | 7.96% | 20.17% |
| Net Margin | 20.54% | 28.59% | 42.73% |
| EBIT Margin | 26.58% | 39.04% | 55.17% |
| EBITDA Margin | 60.39% | 67.59% | 72.36% |
| Gross Margin | 36.55% | 44.09% | 85.13% |
| Research & Development to Revenue | 0% | 0% | 0% |
Coterra's operational efficiency and profitability ratios reaffirm its strategic advantage in maximizing returns on investments while managing costs efficiently.
📉 Price Development
🏆 Dividend Scoring System
| Criteria | Score | Performance |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 2 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Overall Score: 30/40
🗒️ Rating
Given Coterra Energy Inc.'s solid dividend foundations and financial metrics, it earns a recommendation for dividend-focused investors, especially those seeking reliability in long-term income streams. However, those seeking growth should be wary of modest recent dividend increases.