NYSE:CTRA

Stock Analysis Report

Executive Summary

Contura Energy, Inc. extracts, processes, and markets metallurgical and thermal coal to electric utilities, steel and coke manufacturers, and industrial customers in the United States and internationally.

Rewards

Trading at 71.5% below its fair value

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Undervalued with imperfect balance sheet.


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Share Price & News

How has Contura Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.2%

CTRA

1.4%

US Oil and Gas

0.8%

US Market


1 Year Return

-90.1%

CTRA

-9.6%

US Oil and Gas

17.8%

US Market

Return vs Industry: CTRA underperformed the US Oil and Gas industry which returned -9.6% over the past year.

Return vs Market: CTRA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CTRAIndustryMarket
7 Day14.2%1.4%0.8%
30 Day-64.5%-2.1%1.8%
90 Day-79.9%-2.7%4.1%
1 Year-90.1%-90.1%-6.3%-9.6%20.4%17.8%
3 Year-89.1%-90.4%-12.8%-20.9%45.9%36.4%
5 Yearn/a-13.5%-26.2%68.1%49.6%

Price Volatility Vs. Market

How volatile is Contura Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Contura Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTRA ($6.74) is trading below our estimate of fair value ($23.68)

Significantly Below Fair Value: CTRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTRA is good value based on its PE Ratio (0.8x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: CTRA is good value based on its PE Ratio (0.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CTRA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CTRA is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Contura Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-10.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CTRA's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CTRA's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTRA's revenue is expected to decline over the next 3 years (-10.5% per year).

High Growth Revenue: CTRA's revenue is forecast to decline over the next 3 years (-10.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CTRA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Contura Energy performed over the past 5 years?

56.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTRA has a high level of non-cash earnings.

Growing Profit Margin: CTRA's current net profit margins (6.1%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: CTRA's earnings have grown significantly by 56.5% per year over the past 5 years.

Accelerating Growth: CTRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTRA had negative earnings growth (-44.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-15.6%).


Return on Equity

High ROE: CTRA's Return on Equity (16.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Contura Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CTRA's short term assets ($770.5M) exceed its short term liabilities ($330.2M).

Long Term Liabilities: CTRA's short term assets ($770.5M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: CTRA's debt to equity ratio (67.3%) is considered high.

Reducing Debt: Insufficient data to determine if CTRA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CTRA's debt is well covered by operating cash flow (20.5%).

Interest Coverage: CTRA's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: CTRA has a high level of physical assets or inventory.

Debt Coverage by Assets: CTRA's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Contura Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CTRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CTRA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CTRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CTRA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Contura Energy's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

David Stetson (62yo)

0.4yrs

Tenure

US$69,123

Compensation

Mr. David J. Stetson has been Chief Executive Officer and Director of Contura Energy, Inc. since July 29, 2019 and also serves as its Chairman since August 12, 2019. Mr. Stetson was a Director at Contura E ...


Management Age and Tenure

0.4yrs

Average Tenure

58yo

Average Age

Experienced Management: CTRA's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

0.3yrs

Average Tenure

66yo

Average Age

Experienced Board: CTRA's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CTRA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$19,15027 Nov 19
David Stetson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceUS$7.66
BuyUS$93,60022 Nov 19
Jason Whitehead
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares13,000
Max PriceUS$7.20
BuyUS$51,82522 Nov 19
David Stetson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,500
Max PriceUS$6.91
SellUS$506,62021 Nov 19
Davidson Kempner Capital Management LP
EntityCompany
Shares73,000
Max PriceUS$6.94
SellUS$16,495,00020 Sep 19
Whitebox Advisors, LLC
EntityCompany
Shares500,000
Max PriceUS$32.99
SellUS$62,86411 Jun 19
Albert Ferrara
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,185
Max PriceUS$53.05
SellUS$53,03806 Jun 19
Albert Ferrara
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$53.50
SellUS$1,668,11607 Jan 19
Whitebox Advisors, LLC
EntityCompany
Shares25,700
Max PriceUS$65.06

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 85.9%.


Management Team

  • Roger Nicholson (58yo)

    Executive VP

    • Tenure: 0yrs
  • Jason Whitehead

    Executive VP & COO

    • Tenure: 0.3yrs
  • David Stetson (62yo)

    Chairman

    • Tenure: 0.4yrs
    • Compensation: US$69.12k
  • Alex Rotonen

    Investor Relations Contact

    • Tenure: 0yrs
  • Andy Eidson (43yo)

    Executive VP

    • Tenure: 3.4yrs

Board Members

  • Albert Ferrara (70yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$232.74k
  • Jack Lushefski (63yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$79.12k
  • Dan Geiger (69yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$97.80k
  • David Stetson (62yo)

    Chairman

    • Tenure: 0.4yrs
    • Compensation: US$69.12k
  • Emily Medine

    Director

    • Tenure: 0.3yrs

Company Information

Contura Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Contura Energy, Inc.
  • Ticker: CTRA
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$122.763m
  • Shares outstanding: 18.21m
  • Website: https://www.conturaenergy.com

Number of Employees


Location

  • Contura Energy, Inc.
  • 340 Martin Luther King Jr. Boulevard
  • Bristol
  • Tennessee
  • 37620
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTRANYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2016

Biography

Contura Energy, Inc. extracts, processes, and markets metallurgical and thermal coal to electric utilities, steel and coke manufacturers, and industrial customers in the United States and internationally.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:30
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.