Comstock Resources (CRK) AI Stock Analysis

• Market Cap: $5.67B
• Dividend Yield: 0.66%
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -1.17%
• EPS Growth: -608.98%
• Country: US
• Employees: 256
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.16
• Shares Outstanding: 292,919,000
• 10 Day Avg. Volume: 3,321,302
• 30 Day Avg. Volume: 2,543,113
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.65
• Price to Cash Flow (P/CF): 5.50
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.75
• Price Target Upside: -12.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Comstock Resources' stock score reflects significant financial challenges, with declining revenues and high leverage posing risks. While technical indicators show neutral momentum, the valuation is poor due to negative earnings. The earnings call highlighted strategic successes but also underscored key operational challenges. Overall, the company faces a tough environment, requiring improvements in financial structure and operational efficiencies to enhance its stock performance.

Positive Factors

Carbon Capture Technology

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.

Long-term Growth Potential

A deep inventory in Western Haynesville is likely to continue underwriting growth for decades to come, supporting long-term prospects.

Negative Factors

Capital Expenditure

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

Financial Performance

CRK reported slightly negative 1Q25 results with production, DCFPS and EBITDA missing expectations on a slightly larger outspend.

Valuation Concerns

Analyst maintains a Sell rating on valuation, believing shares have significantly outstripped fundamentals at current natural gas strip prices.

Comstock Resources Business Overview & Revenue Model

Company Description

Comstock Resources, Inc. is an independent energy company engaged in the acquisition, exploration, development, and production of oil and natural gas. Primarily operating in the Haynesville shale, one of North America's most prolific natural gas basins, Comstock focuses on maximizing the value of its extensive portfolio of natural gas reserves. The company is headquartered in Frisco, Texas, and is dedicated to efficient and responsible resource extraction to meet the growing energy demands.

How the Company Makes Money

Comstock Resources generates revenue primarily through the production and sale of natural gas. The company's revenue model revolves around extracting natural gas from its extensive assets in the Haynesville shale and selling it to various markets. Key revenue streams include the direct sale of natural gas to industrial, commercial, and residential consumers, as well as entering into long-term contracts with utility companies and other energy providers. Comstock's earnings are significantly influenced by natural gas prices, production volume, and its ability to manage operational costs effectively. Additionally, strategic partnerships and joint ventures with other energy companies can enhance its production capabilities and market reach, contributing further to its revenue.

Comstock Resources Financial Statement Overview

Summary

Comstock Resources is facing financial headwinds with declining revenues, negative profitability, and increasing leverage. While the company maintains a stable equity base, the high debt levels and negative cash flows pose significant financial risks. Strategic adjustments are necessary to improve profitability and cash generation in the coming periods.

Income Statement

The income statement for Comstock Resources shows significant challenges. The TTM (Trailing-Twelve-Months) data reflects a negative net income and EBIT, leading to a negative net profit margin. The revenue has decreased substantially from the prior year. Although EBITDA margin remains positive, the overall profitability has declined due to increased expenses and lower revenues.

Balance Sheet

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is relatively high, reflecting significant leverage, which could pose risks in economic downturns. However, the equity ratio remains fairly stable, indicating a balanced asset structure. Return on equity has turned negative in the TTM due to net losses, impacting overall financial health.

Cash Flow

Cash flow analysis reveals concerns, particularly with a negative free cash flow in the TTM period, indicating the company is spending more on capital expenditures than it is generating from operations. The operating cash flow to net income ratio indicates cash flow remains stronger relative to reported earnings, but the negative free cash flow growth is troubling.

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
1.07B	266.24M	2.33B	1.10B	195.08M
	EBIT
-168.62M	226.47M	2.28B	900.77M	163.03M
	EBITDA
638.19M	1.02B	2.06B	457.55M	590.31M
	Net Income Common Stockholders
-218.75M	211.57M	1.14B	-241.72M	-52.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.80M	16.67M	54.65M	30.66M	30.27M
	Total Assets
6.38B	6.25B	5.69B	4.67B	4.62B
	Total Debt
3.03B	2.71B	2.24B	2.62B	2.52B
	Net Debt
3.02B	2.70B	2.19B	2.59B	2.49B
	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: Positive
• Last Price: 20.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRK, the sentiment is Positive. The current price of 20.27 is above the 20-day moving average (MA) of 18.70, above the 50-day MA of 18.95, and above the 200-day MA of 15.07, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRK.

Comstock Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHRD	79 Outperform	$5.48B	5.75	12.27%	5.48%	34.76%	-34.10%
MTDR	78 Outperform	$4.93B	5.52	19.20%	2.38%	21.73%	1.48%
MGY	72 Outperform	$3.94B	10.47	20.93%	2.56%	8.78%	0.99%
CNX	62 Neutral	$4.51B	9.01	-7.30%	―	22.23%	-130.65%
GPOR	56 Neutral	$3.12B	16.69	-13.60%	―	-11.68%	-123.15%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%
CRK	47 Neutral	$5.67B	―	-14.17%	0.66%	-1.17%	-608.98%