Comstock Resources (CRK) AI Stock Analysis

• Market Cap: $6.77B
• Dividend Yield: 0.66%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -1.73%
• EPS Growth: -608.98%
• Country: US
• Employees: 256
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.18
• Shares Outstanding: 292,917,820
• 10 Day Avg. Volume: 2,119,300
• 30 Day Avg. Volume: 2,609,756
• PEG Ratio: 0.44
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.17
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 29.06
• Enterprise Value/Ebitda: 3.76
• 1Y Price Target: $23.33
• Price Target Upside: 0.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 48 Neutral
• Price Target: $22.00 ▼(-5.42%Downside)

Comstock Resources faces significant financial and market challenges. The heavily leveraged balance sheet and negative valuation metrics weigh heavily on the stock. While there are strategic efforts to improve operations and environmental practices, the bearish technical indicators and mixed earnings call sentiment suggest cautious optimism. The supportive corporate events provide some longer-term confidence, but immediate financial performance remains a concern.

Positive Factors

Carbon Capture Collaboration

Collaboration with BKV to implement carbon capture technology could make Comstock's natural gas more attractive to industrial customers.

Exploration Success

Successful early results on the Olajuwon Pickens #1 well should improve investors' confidence across a larger area of its Western Haynesville position.

Resource Viability

CRK has led the industry in derisking commercial viability of deeper targets as technical limits have improved.

Negative Factors

Leverage and Cash Flow

CRK's leverage is more than double peer levels, making meaningful shareholder returns unlikely until 2027.

Production Guidance

2Q25 production guidance is set below expectations with a total capex significantly above estimates.

Valuation Concerns

CRK's valuation has meaningfully expanded with its EV/EBITDA multiple at a >20% premium to peers, which is now seen as stretched.

Comstock Resources Business Overview & Revenue Model

Company Description

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas primarily in North Louisiana and East Texas, the United States. As of December 31, 2021, the company had 6.1 trillion cubic feet of the natural gas equivalent of proved reserves. It also owns interests in 2,557 producing oil and natural gas wells. The company was incorporated in 1919 and is headquartered in Frisco, Texas.

How the Company Makes Money

Comstock Resources generates revenue primarily through the exploration, development, and production of natural gas and oil. The company focuses on the Haynesville shale, which is one of the most productive natural gas fields in the United States. Revenue is mainly derived from the sale of natural gas, which constitutes the majority of its production portfolio. Comstock enters into contracts with various buyers, including utilities, industrial users, and marketers, to sell its natural gas production. Additionally, the company may engage in hedging activities to manage price risks associated with market fluctuations. Strategic partnerships and joint ventures can also play a role in expanding its resource base and enhancing production capabilities, contributing to its overall earnings.

Comstock Resources Financial Statement Overview

Summary

Comstock Resources faces significant financial challenges, with declining revenues and profitability issues impacting its income statement. The balance sheet is heavily leveraged, increasing financial risk in a cyclic industry. While operating cash flow remains a relative strength, negative free cash flow highlights a dependency on external financing to sustain operations and investments.

Income Statement

Comstock Resources has struggled with profitability, as evidenced by negative net income in recent periods. The TTM (Trailing-Twelve-Months) shows a significant drop in total revenue compared to previous years, leading to negative EBIT and EBITDA margins. The revenue growth rate is negative, indicating a decline in sales performance. Margins have also contracted significantly, pointing to operational inefficiencies or market challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, reflecting significant leverage which could pose financial risks, especially in volatile markets. The equity ratio is stable, suggesting a balanced asset structure, but return on equity has been negative, indicating that equity is not generating adequate returns due to net losses.

Cash Flow

Operating cash flow has been relatively stable, providing some financial cushion for operations. However, free cash flow has been negative, raising concerns about the company's ability to fund its capital expenditures without additional financing. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio is concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.57B	3.63B	1.85B	858.20M
Gross Profit	-130.06M	266.24M	2.33B	1.10B	195.08M
EBITDA	638.19M	1.02B	2.06B	457.55M	590.31M
Net Income	-218.75M	211.57M	1.14B	-241.72M	-52.42M
Balance Sheet
Total Assets	6.42B	6.25B	5.69B	4.67B	4.62B
Cash, Cash Equivalents and Short-Term Investments	6.80M	16.67M	54.65M	30.66M	30.27M
Total Debt	3.03B	2.71B	2.24B	2.62B	2.52B
Total Liabilities	4.05B	3.87B	3.42B	3.48B	3.18B
Stockholders Equity	2.24B	2.36B	2.28B	1.19B	1.44B
Cash Flow
Free Cash Flow	-477.14M	-408.24M	630.59M	169.79M	66.01M
Operating Cash Flow	620.34M	1.02B	1.70B	859.00M	575.70M
Investing Cash Flow	-1.08B	-1.42B	-1.10B	-550.82M	-511.20M
Financing Cash Flow	454.07M	362.97M	-576.72M	-307.80M	-52.76M

Comstock Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRK, the sentiment is Neutral. The current price of 23.26 is below the 20-day moving average (MA) of 25.77, below the 50-day MA of 24.71, and above the 200-day MA of 18.76, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRK.

Comstock Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	82 Outperform	$6.36B	6.83	19.20%	2.50%	21.73%	1.48%
CHRD	82 Outperform	$6.01B	6.97	12.64%	5.09%	31.71%	-32.13%
APA	77 Outperform	$6.73B	6.75	25.34%	5.51%	26.76%	-69.10%
RRC	66 Neutral	$9.10B	34.14	6.96%	0.95%	11.88%	-43.44%
CNX	64 Neutral	$4.89B	9.01	-7.30%	―	22.23%	-130.65%
Sector *	52 Neutral	C$2.94B	-1.05	-3.46%	5.87%	3.01%	-47.13%
CRK	48 Neutral	$6.77B	―	-14.17%	0.66%	-1.73%	-608.98%

Comstock Resources Corporate Events

Comstock Resources Approves Key Proposals at Annual Meeting

On June 3, 2025, Comstock Resources held its annual stockholders meeting where several key proposals were approved. The stockholders voted to amend the 2019 Long-term Incentive Plan by increasing available shares, extending its term, and expanding eligibility to all employees and non-employee directors. Additionally, the re-election of five board members and the ratification of Ernst & Young LLP as the independent auditor for 2025 were confirmed, indicating strong shareholder support and a strategic focus on long-term growth.

The most recent analyst rating on (CRK) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on Comstock Resources stock, see the CRK Stock Forecast page.