Comstock Resources (CRK) AI Stock Analysis

• Market Cap: $6.23B
• Dividend Yield: 0.66%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 17.60%
• EPS Growth: -385.47%
• Country: US
• Employees: 256
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.13
• Shares Outstanding: 293,066,830
• 10 Day Avg. Volume: 3,573,730
• 30 Day Avg. Volume: 2,686,976
• 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: 1.83
• Enterprise Value/Revenue: 6.90
• Enterprise Value/Gross Profit: 21.77
• Enterprise Value/Ebitda: 16.68
• 1Y Price Target: $16.38
• Price Target Upside: -22.95% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 55 Neutral
• Price Target: $19.50 ▼(-8.28% Downside)

Comstock Resources' overall stock score reflects a mixed financial performance with significant leverage and profitability challenges. The technical analysis indicates short-term bullish momentum, but valuation concerns due to a negative P/E ratio and no dividend yield weigh heavily. The earnings call provided a balanced view with both positive developments and notable challenges.

Positive Factors

Revenue Growth

The significant increase in sales indicates strong demand and effective pricing strategies, contributing to improved financial health and potential for sustained revenue growth.

Strategic Collaboration

This partnership could enhance Comstock's market position by diversifying its energy portfolio and tapping into new revenue streams, supporting long-term growth.

Cost Efficiency

Innovative drilling techniques that reduce costs can improve margins and competitiveness, allowing for more efficient resource extraction and better financial performance.

Negative Factors

Production Decline

A decline in production can impact revenue and profitability, indicating potential operational challenges that need addressing to maintain growth momentum.

High Leverage

Significant leverage poses financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to market fluctuations.

Cash Flow Challenges

Negative cash flow growth indicates liquidity issues, which can constrain operations and investments, impacting long-term sustainability and financial stability.

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 properties. The company earns money by producing these resources and selling them at market prices, which can fluctuate based on supply and demand dynamics in the energy markets. Key revenue streams include direct sales to refineries, utilities, and other energy companies, as well as contracts for the transportation and processing of its products. Additionally, Comstock may engage in hedging strategies to manage price volatility and secure more predictable revenue. Strategic partnerships with other companies for joint ventures or resource sharing can also enhance production capabilities and contribute to 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.25B	1.57B	3.63B	1.85B	858.20M
Gross Profit	524.36M	1.07B	266.24M	2.33B	1.10B	195.08M
EBITDA	684.05M	638.19M	1.02B	2.06B	457.55M	590.31M
Net Income	-72.56M	-218.75M	211.57M	1.14B	-241.72M	-52.42M
Balance Sheet
Total Assets	6.69B	6.38B	6.25B	5.69B	4.67B	4.62B
Cash, Cash Equivalents and Short-Term Investments	25.86M	6.80M	16.67M	54.65M	30.66M	30.27M
Total Debt	3.11B	3.03B	2.71B	2.24B	2.62B	2.52B
Total Liabilities	4.26B	4.05B	3.87B	3.42B	3.48B	3.18B
Stockholders Equity	2.24B	2.24B	2.36B	2.28B	1.19B	1.44B
Cash Flow
Free Cash Flow	80.00M	-477.14M	-408.24M	630.59M	169.79M	66.01M
Operating Cash Flow	887.53M	620.34M	1.02B	1.70B	859.00M	575.70M
Investing Cash Flow	-1.15B	-1.08B	-1.42B	-1.10B	-550.82M	-511.20M
Financing Cash Flow	266.88M	454.07M	362.97M	-576.72M	-307.80M	-52.76M

Comstock Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 21.26 is above the 20-day moving average (MA) of 18.38, above the 50-day MA of 17.19, and above the 200-day MA of 19.99, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 74.15 is Negative, neither overbought nor oversold. The STOCH value of 83.68 is Negative, 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
APA	78 Outperform	$8.99B	8.23	19.09%	3.99%	12.13%	-67.53%
RRC	74 Outperform	$9.10B	19.24	11.99%	0.89%	19.95%	0.94%
CHRD	70 Outperform	$5.71B	25.38	3.13%	5.36%	19.55%	-81.10%
MTDR	70 Outperform	$5.58B	6.57	17.07%	2.65%	16.20%	-12.42%
CNX	66 Neutral	$4.71B	56.34	3.73%	―	38.21%	-67.24%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CRK	55 Neutral	$6.23B	―	-3.18%	0.66%	17.60%	-385.47%