DB:CX91

Stock Analysis Report

Comstock Resources

Executive Summary

Comstock Resources, Inc., an independent energy company, engage in the acquisition, exploration for, development, and production of oil and natural gas properties, primarily in Texas, Louisiana, and North Dakota.

Rewards

PE ratio (10.4x) is below the German market (16.8x)

Earnings are forecast to grow 26.79% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Comstock Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CX91's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.6%

CX91

6.4%

DE Oil and Gas

-0.6%

DE Market


1 Year Return

-15.2%

CX91

25.9%

DE Oil and Gas

-20.9%

DE Market

Return vs Industry: CX91 underperformed the German Oil and Gas industry which returned 26.2% over the past year.

Return vs Market: CX91 underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

CX91IndustryMarket
7 Day21.6%6.4%-0.6%
30 Day19.4%-13.2%-18.6%
90 Day-26.2%-25.2%-26.2%
1 Year-15.2%-15.2%29.4%25.9%-18.6%-20.9%
3 Yearn/a-12.8%-20.4%-19.0%-25.8%
5 Yearn/a195.0%150.8%-21.2%-31.8%

Price Volatility Vs. Market

How volatile is Comstock Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Comstock Resources undervalued compared to its fair value and its price relative to the market?

12.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CX91 (€4.58) is trading above our estimate of fair value (€3.9)

Significantly Below Fair Value: CX91 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CX91 is poor value based on its PE Ratio (10.4x) compared to the Oil and Gas industry average (5.9x).

PE vs Market: CX91 is good value based on its PE Ratio (10.4x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: CX91 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CX91 is good value based on its PB Ratio (0.9x) compared to the DE Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Comstock Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CX91's forecast earnings growth (26.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: CX91's earnings (26.8% per year) are forecast to grow faster than the German market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CX91's revenue (15.4% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: CX91's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CX91's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Comstock Resources performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CX91 has a large one-off loss of $41.0M impacting its December 31 2019 financial results.

Growing Profit Margin: CX91 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CX91 has become profitable over the past 5 years, growing earnings by 30% per year.

Accelerating Growth: CX91 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CX91 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-4.1%).


Return on Equity

High ROE: CX91's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Comstock Resources's financial position?


Financial Position Analysis

Short Term Liabilities: CX91's short term assets ($289.7M) do not cover its short term liabilities ($392.4M).

Long Term Liabilities: CX91's short term assets ($289.7M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: CX91's debt to equity ratio (164.2%) is considered high.

Reducing Debt: Insufficient data to determine if CX91's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: CX91 has a high level of physical assets or inventory.

Debt Coverage by Assets: CX91's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CX91 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CX91 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Comstock Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CX91's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CX91's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CX91's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CX91's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CX91's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Miles Allison (63yo)

32.25s

Tenure

US$8,001,398

Compensation

Mr. Miles Jay Allison Co-founded Midwood Petroleum Inc. in 1983. Mr. Allison has been the Chief Executive Officer of Comstock Resources Inc. since 1988 and served as its President from 1988 to May 8, 2013. ...


CEO Compensation Analysis

Compensation vs Market: Miles's total compensation ($USD8.00M) is above average for companies of similar size in the German market ($USD1.38M).

Compensation vs Earnings: Miles's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Miles Allison
Chairman & CEO32.25yrsUS$8.00m0.68% $7.7m
Roland Burns
President21.25yrsUS$5.36m0.40% $4.5m
Daniel Harrison
Chief Operating Officer2.67yrsUS$2.02m0.11% $1.2m
Daniel Presley
VP of Accounting23.25yrsno data0.053% $599.1k
Ronald Mills
Vice President of Finance & Investor Relations0.67yrno data0.0088% $99.7k
David Terry
Senior Vice President of Corporate Development0.75yrno data0.020% $230.2k
Whitney Ward
Vice President of Marketing0.75yrno data0.011% $119.2k
Michael McBurney
Executive Officer0.75yrno data0.032% $366.7k

1.7yrs

Average Tenure

57yo

Average Age

Experienced Management: CX91's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Miles Allison
Chairman & CEO32.25yrsUS$8.00m0.68% $7.7m
Roland Burns
President21.25yrsUS$5.36m0.40% $4.5m
Jim Turner
Lead Director1.67yrsUS$229.42k0.047% $534.1k
John Jacobi
Director0.75yrno data0.012% $135.4k
Morris Foster
Independent Director3.25yrsUS$212.64k0.039% $446.5k
Jordan Marye
Director0.75yrno data0.012% $135.4k
Elizabeth Davis
Independent Director6.25yrsUS$219.69k0.037% $419.1k

3.3yrs

Average Tenure

63yo

Average Age

Experienced Board: CX91's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 186.3%.


Top Shareholders

Company Information

Comstock Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Comstock Resources, Inc.
  • Ticker: CX91
  • Exchange: DB
  • Founded: 1983
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.224b
  • Listing Market Cap: US$1.134b
  • Shares outstanding: 190.00m
  • Website: https://www.crkfrisco.com

Number of Employees


Location

  • Comstock Resources, Inc.
  • Comstock Tower
  • Suite 500
  • Frisco
  • Texas
  • 75034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRKNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2018
CX91DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2018

Biography

Comstock Resources, Inc., an independent energy company, engage in the acquisition, exploration for, development, and production of oil and natural gas properties, primarily in Texas, Louisiana, and North Dakota. As of December 31, 2019, the company had 5.3 trillion cubic feet of natural gas equivalent and 16.7 million barrels of oil equivalent of proved reserves. It also owns an interest in 2,800 producing oil and natural gas wells. The company was founded in 1983 and is headquartered in Frisco, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 01:19
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.