California Resources Corporation
California Resources Corporation Fundamental Analysis
California Resources Corporation (CRCQW) shows strong financial fundamentals with a PE ratio of 12.71, profit margin of 10.88%, and ROE of 11.05%. The company generates $2.9B in annual revenue with strong year-over-year growth of 13.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.8/100 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 CRCQW's fundamental strength across five key dimensions:
Efficiency Score
WeakCRCQW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRCQW trades at attractive valuation levels.
Growth Score
ModerateCRCQW shows steady but slowing expansion.
Financial Health Score
ModerateCRCQW shows balanced financial health with some risks.
Profitability Score
WeakCRCQW struggles to sustain strong margins.
Key Financial Metrics
Is CRCQW Expensive or Cheap?
P/E Ratio
CRCQW trades at 12.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRCQW's PEG of -0.30 indicates potential undervaluation.
Price to Book
The market values California Resources Corporation at 1.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.38 times EBITDA. This is generally considered low.
How Well Does CRCQW 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 $676.88M, showing steady but balanced cash generation.
Free Cash Flow
California Resources Corporation generates strong free cash flow of $441.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.47 in free cash annually.
FCF Yield
CRCQW converts 10.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.47
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 CRCQW Stacks Against Its Sector Peers
| Metric | CRCQW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.71 | 19.94 | Better (Cheaper) |
| ROE | 11.05% | 987.00% | Weak |
| Net Margin | 10.88% | -42983.00% (disorted) | Strong |
| Debt/Equity | 0.32 | -0.60 (disorted) | Distorted |
| Current Ratio | 0.89 | 4.67 | Weak Liquidity |
| ROA | 5.69% | -11498250.00% (disorted) | Weak |
CRCQW 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
-26.62%
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