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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
2.9%
Sector: 6.7%
Dividend Analysis audit
INCOME
5.38%
Trailing Yield
$5.38
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
158%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Crescent Energy Co (CRGY) receives a "Hold" rating with a composite score of 44.8/100, ranked #374 out of 4446 stocks. Key factor scores: Quality 50/100, Value 51/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
Crescent Energy Co (CRGY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Crescent Energy Co Do?
Crescent Energy Company, an energy company, explores for, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. The company holds a portfolio of oil and natural gas assets in key proven basins, including the Eagle Ford, Rockies, Barnett, Permian, Mid-Con, and other basins in the United States. As of December 31, 2021, it had 1,528 gross undrilled locations, including 567 gross operated drilling locations; and 531.6 net million barrels of oil equivalent of proved reserves. The company was founded in 2020 and is based in Houston, Texas. Crescent Energy Co (CRGY) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO David C. Rockecharlie and employs approximately 700 people. With a market capitalization of $4.2B, CRGY is one of the notable companies in the Energy sector.
Crescent Energy Co (CRGY) Stock Rating — Hold (April 2026)
As of April 2026, Crescent Energy Co receives a Hold rating with a composite score of 44.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CRGY ranks #374 out of 4,446 stocks in our coverage universe. Within the Energy sector, Crescent Energy Co ranks #45 of 128 stocks, placing it in the upper half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CRGY Stock Price and 52-Week Range
Crescent Energy Co (CRGY) currently trades at $12.74. The stock gained $0.09 (0.7%) in the most recent trading session. The 52-week high for CRGY is $12.53, which means the stock is currently trading 1.7% from its annual peak. The 52-week low is $6.83, putting the stock 86.5% above its annual trough. Recent trading volume was 5.2M shares, reflecting moderate market activity.
Is CRGY Overvalued or Undervalued? — Valuation Analysis
Crescent Energy Co (CRGY) carries a value factor score of 51/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 29.45x, compared to the Energy sector average of 19.63x — a premium of 50%. The price-to-book ratio stands at 0.87x, versus the sector average of 1.64x. The price-to-sales ratio is 1.30x, compared to 0.47x for the average Energy stock. On an enterprise value basis, CRGY trades at 36.39x EV/EBITDA, versus 3.50x for the sector.
Overall, CRGY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Crescent Energy Co Profitability — ROE, Margins, and Quality Score
Crescent Energy Co (CRGY) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 2.9%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.2% versus the sector average of 3.7%.
On a margin basis, Crescent Energy Co reports gross margins of 89.0%, compared to 52.7% for the sector. The operating margin is 7.4% (sector: 10.7%). Net profit margin stands at 4.2%, versus 6.4% for the average Energy stock. Revenue growth is running at 32.6% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CRGY Debt, Balance Sheet, and Financial Health
Crescent Energy Co has a debt-to-equity ratio of 107.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.48x, suggesting adequate working capital coverage. Total debt on the balance sheet is $5.52B. Cash and equivalents stand at $4M.
CRGY has a beta of 1.58, meaning it is more volatile than the broader market — a $10,000 investment in CRGY would be expected to move 58.4% more than the S&P 500 on any given day. The stability factor score for Crescent Energy Co is 42/100, reflecting average volatility within the normal range for its sector.
Crescent Energy Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Crescent Energy Co reported revenue of $3.46B. Net income for the quarter was $153M. Gross margin was 89.0%. Operating income came in at $275M.
In FY 2025, Crescent Energy Co reported revenue of $3.58B. Net income for the quarter was $167M. Revenue grew 22.1% year-over-year compared to FY 2024. Operating income came in at $229M.
In Q3 2025, Crescent Energy Co reported revenue of $867M. Net income for the quarter was $-10M. Revenue grew 16.3% year-over-year compared to Q3 2024. Operating income came in at $31M.
In Q2 2025, Crescent Energy Co reported revenue of $898M. Net income for the quarter was $162M. Revenue grew 37.5% year-over-year compared to Q2 2024. Operating income came in at $80M.
Over the past 8 quarters, Crescent Energy Co has demonstrated a growth trajectory, with revenue expanding from $653M to $3.46B. Investors analyzing CRGY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CRGY Dividend Yield and Income Analysis
Crescent Energy Co (CRGY) currently pays a dividend yield of 5.4%. At this yield, a $10,000 investment in CRGY stock would generate approximately $$538.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning CRGY offers above-average income for its sector.
CRGY Momentum and Technical Analysis Profile
Crescent Energy Co (CRGY) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CRGY vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing CRGY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CRGY vs S&P 500 (SPY) comparison to assess how Crescent Energy Co stacks up against the broader market across all factor dimensions.
CRGY Next Earnings Date
No upcoming earnings date has been announced for Crescent Energy Co (CRGY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CRGY? — Investment Thesis Summary
Crescent Energy Co presents a balanced picture with arguments on both sides.
In summary, Crescent Energy Co (CRGY) earns a Hold rating with a composite score of 44.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CRGY stock.
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Institutional Research Dossier
Crescent Energy Co (CRGY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Crescent Energy Co (CRGY) receives a Hold rating, driven by a mixed financial performance and a valuation that appears stretched relative to its peers. While the company boasts impressive revenue growth and gross margins, its negative free cash flow and high debt levels raise concerns about its long-term sustainability and ability to navigate potential downturns in the energy market. The company's strategic focus on acquiring and developing oil and natural gas assets in established basins offers potential upside, but execution risks and commodity price volatility warrant a cautious approach.
The primary takeaway is that Crescent Energy presents a complex investment case. Its growth potential is tempered by financial vulnerabilities and a valuation that doesn't fully compensate for the inherent risks. Investors should closely monitor the company's ability to improve free cash flow generation and manage its debt burden before considering a more bullish stance.
Business Strategy & Overview
Crescent Energy operates as an exploration and production (E&P) company focused on acquiring and developing oil and natural gas reserves in the United States. The company's strategy centers around building a diversified portfolio of assets in key proven basins, including the Eagle Ford, Rockies, Barnett, Permian, and Mid-Con. This diversification aims to mitigate risk associated with any single basin or commodity price fluctuation. Crescent Energy's business model involves acquiring producing assets, optimizing their production, and selectively developing new drilling locations to increase reserves and production volumes.
A key aspect of Crescent Energy's strategy is its focus on operational efficiency and cost control. The company seeks to improve production techniques, reduce operating expenses, and enhance capital allocation to maximize profitability. This includes leveraging technology and data analytics to optimize drilling and completion processes, as well as implementing best practices in reservoir management. The company also actively manages its commodity price exposure through hedging strategies to protect against downside risk.
Crescent Energy's competitive landscape is characterized by a mix of large integrated oil companies, independent E&P firms, and private equity-backed operators. The company competes for acquisition opportunities, drilling rights, and access to infrastructure. Its ability to successfully execute its strategy depends on its technical expertise, financial resources, and relationships with landowners and regulatory agencies. The company's focus on established basins provides a degree of competitive advantage, as these areas have well-developed infrastructure and a proven track record of production.
The company's product pipeline primarily consists of drilling and development projects within its existing asset base. Crescent Energy continuously evaluates potential drilling locations and prioritizes projects based on their economic viability and risk profile. The company also explores opportunities to acquire additional assets that complement its existing portfolio. The success of Crescent Energy's product pipeline depends on its ability to accurately assess reservoir characteristics, optimize drilling and completion techniques, and manage production costs.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
32.6%
Sector: -1.2%
-2891% VS SCTR
Economic Moat Analysis
Crescent Energy's economic moat is assessed as None. While the company operates in an industry with high barriers to entry due to the capital-intensive nature of oil and gas exploration and production, it lacks significant competitive advantages that would protect its profitability over the long term. The company's assets are primarily commodity-based, and it does not possess unique intellectual property, proprietary technology, or exclusive access to resources that would differentiate it from its competitors.
The absence of a strong economic moat is evident in the company's relatively low return on equity (ROE) compared to the sector average. While the company's gross margin is significantly higher than the sector average, this advantage is offset by higher operating expenses and interest costs, resulting in a lower net margin. This suggests that Crescent Energy is unable to translate its revenue into sustainable profits due to competitive pressures and operational inefficiencies.
The company's reliance on acquisitions to grow its reserves and production volumes also weakens its economic moat. While acquisitions can provide a quick boost to production, they also expose the company to integration risks and the potential for overpaying for assets. Furthermore, the acquired assets may not be as productive or profitable as initially anticipated, which could negatively impact the company's financial performance.
The cyclical nature of the oil and gas industry further diminishes Crescent Energy's ability to establish a durable economic moat. Commodity prices are subject to significant fluctuations based on supply and demand dynamics, geopolitical events, and macroeconomic factors. These fluctuations can significantly impact the company's revenue and profitability, making it difficult to sustain consistent financial performance over the long term. The company's high debt levels also exacerbate its vulnerability to commodity price volatility, as it must generate sufficient cash flow to service its debt obligations.
Financial Health & Profitability
Crescent Energy's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a 32.7% increase compared to a sector average decline of 1.7%. This growth is likely attributable to acquisitions and increased production volumes. However, the company's profitability metrics are less impressive. Its net income margin of 4.2% is below the sector average of 6.3%, and its return on equity (ROE) of 2.9% is significantly lower than the sector average of 6.9%. This suggests that the company is not efficiently utilizing its assets to generate profits.
A significant concern is the company's negative free cash flow of -$382.07 million. This indicates that the company is spending more cash than it is generating from its operations, which could strain its financial resources and limit its ability to invest in future growth. The negative free cash flow may be due to high capital expenditures related to acquisitions and development projects. The quarterly financial history shows fluctuating net income, with some quarters showing losses, indicating volatility in earnings.
Crescent Energy's balance sheet is highly leveraged, with a total debt of $5.52 billion and a debt-to-equity ratio of 107.00, significantly higher than the sector average of 55.00. This high level of debt increases the company's financial risk and makes it more vulnerable to downturns in the energy market. The company's current ratio of 1.48 indicates that it has sufficient current assets to cover its current liabilities, but its high debt burden remains a concern.
The company's gross margin of 89.0% is significantly higher than the sector average of 55.1%, suggesting that it has a cost advantage in producing oil and gas. However, this advantage is offset by higher operating expenses and interest costs, resulting in a lower operating margin of 7.4% compared to the sector average of 10.6%. The company's ability to improve its operating efficiency and reduce its debt burden will be crucial to improving its financial health.
Valuation Assessment
Crescent Energy's valuation appears stretched relative to its peers in the energy sector. The company's price-to-earnings (P/E) ratio of 27.2x is significantly higher than the sector average of 19.5x, suggesting that investors are paying a premium for its earnings. Similarly, its enterprise value-to-EBITDA (EV/EBITDA) ratio of 10.6x is considerably higher than the sector average of 3.5x, indicating that the company is overvalued based on its operating performance.
The high valuation multiples may be justified if Crescent Energy were growing at a significantly faster rate than its peers. While the company has demonstrated strong revenue growth, its profitability metrics are less impressive. Its net income margin and return on equity are below the sector average, suggesting that its earnings growth may not be sustainable. Furthermore, the company's negative free cash flow raises concerns about its ability to generate cash to fund future growth.
Given the company's high debt levels and negative free cash flow, a discounted cash flow (DCF) analysis would likely result in a lower valuation than implied by its current market price. The DCF analysis would need to account for the company's high cost of capital, its volatile earnings, and its uncertain growth prospects. The high short interest score of 10/100 suggests that a significant number of investors believe that the stock is overvalued and are betting against it.
Overall, Crescent Energy's valuation appears to be based on optimistic assumptions about its future growth and profitability. The company's high debt levels, negative free cash flow, and below-average profitability metrics warrant a more cautious valuation. Investors should carefully consider the risks associated with the company's financial health and its ability to execute its growth strategy before investing in the stock.
Risk & Uncertainty
Crescent Energy faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is commodity price volatility. The company's revenue and profitability are highly dependent on the prices of oil and natural gas, which are subject to significant fluctuations based on supply and demand dynamics, geopolitical events, and macroeconomic factors. A decline in commodity prices could significantly reduce the company's revenue and profitability, making it difficult to service its debt obligations and fund future growth.
Another key risk is the company's high debt levels. Crescent Energy has a significant amount of debt outstanding, which increases its financial risk and makes it more vulnerable to downturns in the energy market. The company's ability to service its debt obligations depends on its ability to generate sufficient cash flow from its operations. A decline in commodity prices or an increase in operating expenses could strain the company's financial resources and potentially lead to a default on its debt obligations.
Acquisition risk is also a significant concern. Crescent Energy has grown its business through acquisitions, which exposes it to integration risks and the potential for overpaying for assets. Integrating acquired assets can be complex and time-consuming, and there is no guarantee that the acquired assets will be as productive or profitable as initially anticipated. Furthermore, the company may face challenges in managing its growing asset base and maintaining operational efficiency.
Regulatory risk is another factor to consider. The oil and gas industry is subject to extensive regulations related to environmental protection, safety, and permitting. Changes in regulations could increase the company's operating costs and limit its ability to develop new projects. Furthermore, the increasing focus on climate change and the transition to renewable energy sources could negatively impact the demand for oil and gas in the long term.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCrescent Energy's strategic focus on acquiring and developing assets in established basins provides a stable production base and reduces exploration risk, leading to consistent revenue generation.
BULL VIEWThe company's high gross margin compared to the sector indicates efficient operations and a competitive advantage in production costs, which will translate to higher profitability as commodity prices stabilize.
BULL VIEWWith a diversified portfolio of oil and natural gas assets, Crescent Energy is well-positioned to capitalize on rising energy demand and benefit from potential infrastructure development in key basins.
The Bear Case
BEAR VIEWCrescent Energy's negative free cash flow and high debt levels raise serious concerns about its financial sustainability and ability to weather commodity price downturns.
BEAR VIEWThe company's valuation is significantly higher than its peers, suggesting that the market is overly optimistic about its growth prospects and ignoring its profitability challenges.
BEAR VIEWWithout a discernible economic moat, Crescent Energy lacks a sustainable competitive advantage and is vulnerable to competition from larger, more established players in the energy sector.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CRGY and 4,400+ other equities.
Crescent Energy Co exhibits a 280% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.2%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
89.0%
Sector: 52.7%
Operating Margin
Core business profitability
7.4%
Sector: 10.7%
Net Margin
Bottom-line profitability
4.2%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+185%
Income Projection audit
A $10,000 investment would generate approximately $538 annually in dividends at the current trailing rate.
