California Resources Corporation
California Resources Corporation Fundamental Analysis
California Resources Corporation (CRC) shows moderate financial fundamentals with a PE ratio of 13.01, profit margin of 10.88%, and ROE of 11.05%. The company generates $3.7B in annual revenue with moderate year-over-year growth of 4.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.3/100 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 CRC's fundamental strength across five key dimensions:
Efficiency Score
WeakCRC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRC trades at attractive valuation levels.
Growth Score
WeakCRC faces weak or negative growth trends.
Financial Health Score
ModerateCRC shows balanced financial health with some risks.
Profitability Score
WeakCRC struggles to sustain strong margins.
Key Financial Metrics
Is CRC Expensive or Cheap?
P/E Ratio
CRC trades at 13.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRC's PEG of -0.31 indicates potential undervaluation.
Price to Book
The market values California Resources Corporation at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.47 times EBITDA. This is generally considered low.
How Well Does CRC Make Money?
Net Profit Margin
For every $100 in sales, California Resources Corporation keeps $10.88 as profit after all expenses.
Operating Margin
Core operations generate 21.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.05 in profit for every $100 of shareholder equity.
ROA
California Resources Corporation generates $5.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
California Resources Corporation produces operating cash flow of $885.31M, showing steady but balanced cash generation.
Free Cash Flow
California Resources Corporation generates strong free cash flow of $577.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.47 in free cash annually.
FCF Yield
CRC converts 10.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.008
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CRC Stacks Against Its Sector Peers
| Metric | CRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.01 | 20.19 | Better (Cheaper) |
| ROE | 11.05% | 1019.00% | Weak |
| Net Margin | 10.88% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.32 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.89 | 4.60 | Weak Liquidity |
| ROA | 5.69% | -11655350.00% (disorted) | Weak |
CRC 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 California Resources Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-32.75%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
134.68%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-44.24%
Industry Style: Cyclical, Value, Commodity
Declining