COMSTOCK RESOURCES INC (CRK)

US2057683029 - Common Stock

10.79  +0.04 (+0.37%)

After market: 10.22 -0.57 (-5.28%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to CRK. CRK was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. CRK may be in some trouble as it scores bad on both profitability and health. CRK is quite expensive at the moment. It does show a decent growth rate.



3

1. Profitability

1.1 Basic Checks

CRK had positive earnings in the past year.
In the past year CRK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CRK reported negative net income in multiple years.
In the past 5 years CRK always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.09%, CRK is doing worse than 65.88% of the companies in the same industry.
The Return On Equity of CRK (7.98%) is worse than 63.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.10%, CRK is doing worse than 73.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRK is significantly below the industry average of 30.73%.
The 3 year average ROIC (21.34%) for CRK is well above the current ROIC(3.10%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 3.09%
ROE 7.98%
ROIC 3.1%
ROA(3y)5.84%
ROA(5y)3.46%
ROE(3y)12.11%
ROE(5y)7.08%
ROIC(3y)21.34%
ROIC(5y)14.54%

1.3 Margins

CRK has a Profit Margin of 10.27%. This is comparable to the rest of the industry: CRK outperforms 43.60% of its industry peers.
The Operating Margin of CRK (11.24%) is worse than 66.35% of its industry peers.
In the last couple of years the Operating Margin of CRK has declined.
The Gross Margin of CRK (55.96%) is better than 62.09% of its industry peers.
CRK's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.24%
PM (TTM) 10.27%
GM 55.96%
OM growth 3Y-8.67%
OM growth 5Y-19.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.8%
GM growth 5Y-6.83%

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CRK is creating value.
Compared to 1 year ago, CRK has more shares outstanding
The number of shares outstanding for CRK has been increased compared to 5 years ago.
Compared to 1 year ago, CRK has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.07, we must say that CRK is in the distress zone and has some risk of bankruptcy.
CRK has a Altman-Z score of 1.07. This is comparable to the rest of the industry: CRK outperforms 42.18% of its industry peers.
CRK has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CRK (1.10) is worse than 74.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF N/A
Altman-Z 1.07
ROIC/WACC0.41
WACC7.48%

2.3 Liquidity

A Current Ratio of 0.64 indicates that CRK may have some problems paying its short term obligations.
CRK has a worse Current ratio (0.64) than 81.04% of its industry peers.
CRK has a Quick Ratio of 0.64. This is a bad value and indicates that CRK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CRK (0.64) is worse than 73.46% of its industry peers.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.64

6

3. Growth

3.1 Past

CRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -96.91%.
The Earnings Per Share has been growing by 18.84% on average over the past years. This is quite good.
Looking at the last year, CRK shows a very negative growth in Revenue. The Revenue has decreased by -53.84% in the last year.
The Revenue has been growing by 32.02% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-96.91%
EPS 3Y18.84%
EPS 5YN/A
EPS Q2Q%-109.09%
Revenue 1Y (TTM)-53.84%
Revenue growth 3Y22.18%
Revenue growth 5Y32.02%
Sales Q2Q%-31.42%

3.2 Future

CRK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.48% yearly.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
EPS Next Y-120.49%
EPS Next 2Y40.85%
EPS Next 3Y46.01%
EPS Next 5Y71.48%
Revenue Next Year-8.82%
Revenue Next 2Y11.29%
Revenue Next 3Y8.38%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 98.09 indicates a quite expensive valuation of CRK.
CRK's Price/Earnings ratio is a bit more expensive when compared to the industry. CRK is more expensive than 77.73% of the companies in the same industry.
CRK is valuated expensively when we compare the Price/Earnings ratio to 28.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of CRK can be described as reasonable.
CRK's Price/Forward Earnings is on the same level as the industry average.
CRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.22.
Industry RankSector Rank
PE 98.09
Fwd PE 11.57

4.2 Price Multiples

CRK's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.65

4.3 Compensation for Growth

A more expensive valuation may be justified as CRK's earnings are expected to grow with 46.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.85%
EPS Next 3Y46.01%

5

5. Dividend

5.1 Amount

CRK has a Yearly Dividend Yield of 4.65%, which is a nice return.
Compared to an average industry Dividend Yield of 6.18, CRK pays a bit more dividend than its industry peers.
CRK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
Industry RankSector Rank
Dividend Yield 4.65%

5.2 History

CRK has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

53.42% of the earnings are spent on dividend by CRK. This is a bit on the high side, but may be sustainable.
DP53.42%
EPS Next 2Y40.85%
EPS Next 3Y46.01%

COMSTOCK RESOURCES INC

NYSE:CRK (6/21/2024, 7:04:00 PM)

After market: 10.22 -0.57 (-5.28%)

10.79

+0.04 (+0.37%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.15B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.65%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 98.09
Fwd PE 11.57
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.09%
ROE 7.98%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.24%
PM (TTM) 10.27%
GM 55.96%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.64
Quick Ratio 0.64
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-96.91%
EPS 3Y18.84%
EPS 5Y
EPS Q2Q%
EPS Next Y-120.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-53.84%
Revenue growth 3Y22.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y