Comstock Resources (CRK) AI Stock Analysis

• Market Cap: $6.22B
• Dividend Yield: N/A
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 100.7
• Beta (1Y): 1.20
• Revenue Growth: 35.41%
• EPS Growth: N/A
• Country: US
• Employees: 256
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.09
• Shares Outstanding: 293,054,800
• 10 Day Avg. Volume: 2,086,823
• 30 Day Avg. Volume: 2,403,523
• PEG Ratio: 0.12
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 4.17
• P/FCF Ratio: -10.96
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 5.12
• Enterprise Value/Gross Profit: 11.44
• Enterprise Value/Ebitda: 11.34
• 1Y Price Target: $20.00
• Price Target Upside: -10.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $22.50 ▲(0.31% Upside)

Comstock Resources' overall stock score is primarily influenced by its financial challenges, including high leverage and declining margins. While the earnings call provided a positive outlook with strategic advancements, the high P/E ratio and overbought technical indicators suggest caution. The company's ability to manage its debt and improve operational efficiency will be crucial for future performance.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective sales strategies, supporting long-term growth prospects.

Strategic Collaboration

The partnership with NextEra Energy could enhance Comstock's capabilities in energy production, offering new revenue streams and market expansion.

Cost Management

Effective cost management and high margins indicate operational efficiency, which can sustain profitability even in volatile market conditions.

Negative Factors

High Leverage

Significant leverage increases financial risk and may limit strategic flexibility, potentially impacting long-term financial health.

Production Decline

Declining production levels can affect revenue and profitability, posing challenges to maintaining market position and operational scale.

Declining Margins

Decreasing margins suggest cost pressures and operational inefficiencies, which could hinder profitability and competitive positioning.

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 sale of crude oil, natural gas, and natural gas liquids extracted from its production operations. The company's revenue model is heavily reliant on the commodity prices of oil and natural gas, which can fluctuate based on market demand, geopolitical events, and changes in supply. Key revenue streams include the direct sale of hydrocarbons to various customers, including utilities and industrial operators, as well as long-term contracts that may lock in prices for portions of its production. Additionally, Comstock may benefit from joint ventures or partnerships that enhance its operational capacity and resource access, contributing to its overall earnings. The company’s financial performance is also influenced by its cost management strategies and operational efficiency in extracting resources.

Comstock Resources Financial Statement Overview

Summary

Comstock Resources faces challenges in profitability and cash flow generation, despite some revenue growth. High leverage and declining margins suggest financial strain, while negative return on equity indicates difficulties in delivering shareholder value.

Income Statement

Comstock Resources shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 31.7%, which is a decline from previous years, suggesting pressure on cost management. The net profit margin is negative at -4.39%, indicating challenges in achieving profitability. However, there is a positive revenue growth rate of 8.79% TTM, showing some recovery in sales. The EBIT and EBITDA margins have also seen a decline, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.39 TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative at -3.26%, highlighting challenges in generating returns for shareholders. However, the equity ratio stands at 34.3%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a concerning trend with a significant decline in free cash flow growth at -107.64% TTM. The operating cash flow to net income ratio is 1.19, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.09, reflecting limited free cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.25B	1.57B	3.63B	1.85B	858.20M
Gross Profit	805.51M	-130.06M	266.24M	2.33B	1.10B	195.08M
EBITDA	812.43M	638.19M	1.02B	2.06B	457.55M	590.31M
Net Income	67.46M	-218.75M	211.89M	1.14B	-241.72M	-52.42M
Balance Sheet
Total Assets	6.84B	6.38B	6.25B	5.69B	4.67B	4.74B
Cash, Cash Equivalents and Short-Term Investments	19.21M	6.80M	16.67M	54.65M	30.66M	30.27M
Total Debt	3.20B	3.03B	2.71B	2.25B	2.62B	2.52B
Total Liabilities	4.22B	4.05B	3.87B	3.42B	3.48B	3.30B
Stockholders Equity	2.36B	2.24B	2.36B	2.28B	1.19B	1.44B
Cash Flow
Free Cash Flow	-321.32M	-477.14M	-408.24M	630.59M	169.79M	64.22M
Operating Cash Flow	942.46M	620.34M	1.02B	1.70B	859.00M	575.70M
Investing Cash Flow	-1.20B	-1.08B	-1.42B	-1.10B	-550.82M	-511.20M
Financing Cash Flow	259.16M	454.07M	362.97M	-576.72M	-307.80M	-52.76M

Comstock Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.43
• 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 Positive. The current price of 22.43 is above the 20-day moving average (MA) of 22.41, below the 50-day MA of 23.33, and above the 200-day MA of 21.11, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 21.68 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
MTDR	82 Outperform	$5.25B	6.76	15.06%	3.14%	14.77%	-17.38%
CHRD	76 Outperform	$5.24B	35.66	2.02%	5.73%	8.43%	-86.63%
APA	73 Outperform	$8.94B	6.06	27.24%	3.80%	4.88%	-41.34%
RRC	71 Outperform	$7.93B	14.05	14.18%	1.00%	23.88%	20.55%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CRK	59 Neutral	$6.22B	100.67	2.86%	―	35.41%	―
CNX	59 Neutral	$4.65B	24.97	6.98%	―	43.30%	-43.07%