Comstock Resources, Inc.
Comstock Resources, Inc. Fundamental Analysis
Comstock Resources, Inc. (CRK) shows strong financial fundamentals with a PE ratio of 6.75, profit margin of 32.58%, and ROE of 26.11%. The company generates $2.0B in annual revenue with strong year-over-year growth of 52.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CRK's fundamental strength across five key dimensions:
Efficiency Score
WeakCRK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRK trades at attractive valuation levels.
Growth Score
ModerateCRK shows steady but slowing expansion.
Financial Health Score
WeakCRK carries high financial risk with limited liquidity.
Profitability Score
ModerateCRK maintains healthy but balanced margins.
Key Financial Metrics
Is CRK Expensive or Cheap?
P/E Ratio
CRK trades at 6.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRK's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Comstock Resources, Inc. at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.83 times EBITDA. This is generally considered low.
How Well Does CRK Make Money?
Net Profit Margin
For every $100 in sales, Comstock Resources, Inc. keeps $32.58 as profit after all expenses.
Operating Margin
Core operations generate 21.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.11 in profit for every $100 of shareholder equity.
ROA
Comstock Resources, Inc. generates $9.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Comstock Resources, Inc. generates strong operating cash flow of $1.00B, reflecting robust business health.
Free Cash Flow
Comstock Resources, Inc. generates weak or negative free cash flow of $-473.84M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.61 in free cash annually.
FCF Yield
CRK converts -10.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CRK Stacks Against Its Sector Peers
| Metric | CRK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.75 | 21.16 | Better (Cheaper) |
| ROE | 26.11% | 966.00% | Weak |
| Net Margin | 32.58% | -60227.00% (disorted) | Strong |
| Debt/Equity | 1.10 | -0.50 (disorted) | Distorted |
| Current Ratio | 0.41 | 5.18 | Weak Liquidity |
| ROA | 9.02% | -156.00% (disorted) | Weak |
CRK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Comstock Resources, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.55%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
658.55%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
15.64%
Industry Style: Cyclical, Value, Commodity
High Growth