NYSE:CRK

Stock Analysis Report

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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.


Snowflake Analysis

Undervalued with proven track record.


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: CRK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

CRK

-0.7%

US Oil and Gas

1.9%

US Market


1 Year Return

-22.9%

CRK

-39.9%

US Oil and Gas

4.3%

US Market

Return vs Industry: CRK exceeded the US Oil and Gas industry which returned -39.9% over the past year.

Return vs Market: CRK underperformed the US Market which returned 4.3% over the past year.


Shareholder returns

CRKIndustryMarket
7 Day-2.7%-0.7%1.9%
30 Day-18.8%-5.4%2.7%
90 Day-25.0%21.9%26.4%
1 Year-22.9%-22.9%-37.0%-39.9%6.5%4.3%
3 Yearn/a-32.5%-39.6%35.1%26.2%
5 Yearn/a-36.5%-46.8%67.0%48.4%

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

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRK ($4.31) is trading below our estimate of fair value ($7.24)

Significantly Below Fair Value: CRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CRK is good value based on its PE Ratio (7.8x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: CRK is good value based on its PE Ratio (7.8x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CRK is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CRK is overvalued based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Comstock Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRK's forecast earnings growth (15.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CRK's earnings (15.3% per year) are forecast to grow slower than the US market (22.7% per year).

High Growth Earnings: CRK's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRK's revenue (4.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CRK's revenue (4.2% 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 CRK'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?

42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRK has a large one-off loss of $41.0M impacting its March 31 2014 financial results.

Growing Profit Margin: CRK's current net profit margins (10.8%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: CRK has become profitable over the past 5 years, growing earnings by 42.6% per year.

Accelerating Growth: CRK's earnings growth over the past year (230.5%) exceeds its 5-year average (42.6% per year).

Earnings vs Industry: CRK earnings growth over the past year (230.5%) exceeded the Oil and Gas industry -22.9%.


Return on Equity

High ROE: CRK's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Comstock Resources's financial position?


Financial Position Analysis

Short Term Liabilities: CRK's short term assets ($267.8M) do not cover its short term liabilities ($327.6M).

Long Term Liabilities: CRK's short term assets ($267.8M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: CRK's debt to equity ratio (161.1%) is considered high.

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

Debt Coverage: CRK's debt is well covered by operating cash flow (21%).

Interest Coverage: CRK's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CRK'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 CRK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Miles Allison (64yo)

32.5yrs

Tenure

US$8,778,389

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 ($USD8.78M) is above average for companies of similar size in the US market ($USD3.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Miles Allison
Chairman & CEO32.5yrsUS$8.78m0.57% $5.7m
Roland Burns
President21.5yrsUS$4.94m0.34% $3.4m
Daniel Harrison
Chief Operating Officer2.92yrsUS$2.00m0.13% $1.3m
Daniel Presley
VP of Accounting23.5yrsUS$930.83k0.053% $529.5k
David Terry
Senior Vice President of Corporate Development1yrUS$915.31k0.034% $340.5k
Ronald Mills
Vice President of Finance & Investor Relations0.92yrno data0.015% $152.1k
Whitney Ward
Vice President of Marketing1yrno data0.018% $177.3k
Michael McBurney
Executive Officer1yrno datano data

2.0yrs

Average Tenure

58yo

Average Age

Experienced Management: CRK's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Miles Allison
Chairman & CEO32.5yrsUS$8.78m0.57% $5.7m
Roland Burns
President21.5yrsUS$4.94m0.34% $3.4m
Jim Turner
Lead Independent Director1.92yrsUS$265.75k0.081% $809.0k
John Jacobi
Independent Director1yrUS$163.04k0.020% $197.9k
Morris Foster
Independent Director3.5yrsUS$220.50k0.042% $422.5k
Jordan Marye
Independent Director1yrUS$163.04k0.020% $197.9k
Elizabeth Davis
Independent Director6.5yrsUS$239.50k0.040% $402.7k

3.5yrs

Average Tenure

64yo

Average Age

Experienced Board: CRK's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CRK 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 119%.


Top Shareholders

Company Information

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


Key Information

  • Name: Comstock Resources, Inc.
  • Ticker: CRK
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$999.094m
  • Shares outstanding: 231.81m
  • 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 Analysis2020/07/01 23:59
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
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.