August 16, 2025 a 11:31 am
CTRA: Dividend Analysis - Coterra Energy Inc.
Coterra Energy Inc. showcases a robust dividend profile with a respectable yield and a history of consistent payouts for 36 years. Despite facing fluctuations, particularly a negative three-year growth, the five-year strategy indicates a cautious, moderate growth approach. The payout ratios reflect a disciplined policy, underscoring the firm's financial resilience and commitment to returning value to shareholders.
📊 Overview
Coterra Energy Inc. stands out within its sector with a focused approach towards leveraging its dividends as a key attractive feature for stakeholders. The statistics highlight its long-term commitment to shareholder value, making it a worthy consideration for dividend-focused portfolios.
| Key Metric | Details |
|---|---|
| Sector | Energy |
| Dividend yield | 3.61 % |
| Current dividend per share | 0.84 USD |
| Dividend history | 36 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history of Coterra Energy demonstrates its resilience and ability to deliver consistent returns, even in volatile markets. This historical commitment supports investor confidence, underpinning the company's long-term value proposition.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.66 |
| 2024 | 0.84 |
| 2023 | 1.17 |
| 2022 | 2.49 |
| 2021 | 1.12 |
📈 Dividend Growth
Coterra's dividend growth paints a picture of gradual progress, where recent challenges are offset by strategic long-term gains. Observing these trends is crucial for assessing future earnings potential and investment viability.
| 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 is a critical factor in determining the sustainability of dividend payments. It reflects how much of the company's earnings are being returned to shareholders as dividends, offering insights into financial health and operational strategy.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.01 % |
| Free cash flow-based | 19.86 % |
The EPS payout ratio of 31.01% and FCF payout ratio of 19.86% indicate a comfortable level of payout, showcasing the company’s ability to sustain and potentially grow dividends in the future while retaining sufficient earnings for reinvestment.
💵 Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency is key to understanding the financial agility and investment quality of Coterra Energy. These metrics help assess operational efficiency and the company’s ability to generate returns on capital employed effectively.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.40% | 8.08% | 19.15% |
| Earnings Yield | 5.91% | 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 | 36.6% | 42.6% | 68.7% |
Coterra Energy's cash flow metrics reflect strong financial health and prudent capital allocation, presenting a sound capital management strategy amid varying sector conditions.
💳 Balance Sheet & Leverage Analysis
Assessing leverage metrics provides insights into a company’s debt management and financial risk levels. Coterra's solid balance sheet metrics reinforce its creditworthiness and operational flexibility, enabling strategic growth and investment.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 28.97% | 19.37% | 20.53% |
| Debt-to-Assets | 17.58% | 12.37% | 12.90% |
| Debt-to-Capital | 22.47% | 16.23% | 17.03% |
| Net Debt to EBITDA | 0.54 | 0.41 | 0.28 |
| Current Ratio | 292.34% | 121.39% | 185.33% |
| Quick Ratio | 288.29% | 117.83% | 180.05% |
The robust balance sheet and judicious debt management reflect Coterra’s focus on maintaining leverage ratios well within industry norms, supporting long-term financial stability and flexible capital structure.
📉 Fundamental Strength & Profitability
The foundation of a company's long-term success is its intrinsic profitability and operational efficiency. Evaluating these benchmarks sheds light on Coterra Energy's capacity to maintain profit margins and generate returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.54% | 12.46% | 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% |
Coterra's strong profitability metrics, alongside superior margins and returns, amplify its competitive advantage and steadfast financial performance.
🧾 Price Development
✅ Dividend Scoring System
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 34/40
🏆 Rating
In conclusion, Coterra Energy Inc. earns a commendable rating through its high dividend stability and robust payout ratio. Its balanced approach to dividend strategy, coupled with solid financial metrics and operational efficiency, makes it an attractive candidate for dividend-seeking investors. The firm maintains a strong foothold within the energy sector through calculated growth and prudent financial management, providing a reliable and consistent investor return.