Contura Story

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CTRA -- USA Stock  

USD 14.02  0.08  0.57%

The next fiscal quarter end is expected on the 30th of September 2020. The stock is undergoing an active upward rally. While some of us are becoming more enthusiastic about energy space, let's go over Contura Energy in greater detail to make a better estimate of its debt utilization. Here we also measure the ability of Contura Energy to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over three months ago
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Continue to hold Contura (NYSE:CTRA) based on its current debt obligations?
The company currently holds 634.95 M in liabilities with Debt to Equity (D/E) ratio of 1.55, which is about average as compared to similar companies. Contura Energy has a current ratio of 2.31, suggesting that it is liquid enough and is able to pay its financial obligations when due. About 103.0% of the company shares are held by institutions such as insurance companies. Contura Energy has price-to-book (P/B) ratio of 0.24. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity recorded a loss per share of 26.44. The firm last dividend was issued on the 30th of June 2017.
Contura Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Contura Energy, including all of Contura Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Contura Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall Contura Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Contura Total Debt

Contura Energy liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Contura Energy has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Contura Energy balance sheet include debt obligations and money owed to different Contura Energy vendors, workers, and loan providers. Below is the chart of Contura main long-term debt accounts currently reported on its balance sheet.
You can use Contura Energy financial leverage analysis tool to get a better grip on understanding its financial position

How important is Contura Energy's Liquidity

Contura Energy financial leverage refers to using borrowed capital as a funding source to finance Contura Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Contura Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Contura Energy's total debt and its cash.

Payment of 612 shares by Horn Daniel E of Contura Energy subject to Rule 16b-3

Legal trades by Contura Energy insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Contura insider trading alert for payment of common stock $0.01 par value per share by Horn Daniel E, Executive Vice President-Sales, on 28th of December 2020. This event was filed by Contura Energy Inc with SEC on 2020-12-28. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Outlook On Contura Energy

The entity reported the previous year's revenue of 1.91 B. Net Loss for the year was (513.54 M) with profit before overhead, payroll, taxes, and interest of 373.76 M.

Asset Breakdown

1.6 B
Assets Non Current
623.3 M
761.2 M
Current Assets
Total Assets2.35 Billion
Current Assets761.24 Million
Assets Non Current1.59 Billion
Goodwill623.31 Million
Tax Assets36.91 Million

Our take on today Contura Energy rise

Semi deviation is down to 5.27. It may suggest a possible volatility slip. Contura Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize Contura Energy independently to ensure intended market timing strategies are aligned with expectations about Contura Energy volatility.

Our Final Perspective on Contura Energy

Whereas other entities under the thermal coal industry are still a bit expensive, Contura Energy may offer a potential longer-term growth to investors. To summarize, as of the 18th of September 2020, we believe that at this point, Contura Energy is unstable with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our primary 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Contura Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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