California Resources Corp (CRC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

California Resources's EV/EBITDA of 11.8 is above its 5-year median of 4.5.

P/B below the industry

California Resources's price-to-book of 1.24 is below the Crude Petroleum and Natural Gas median of 1.33.

Trading below fair value

The share price of $47.45 is below our fair value estimate of $58.45.

Margin of safety under 20%

The price is 18.8% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 10.7% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -15.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -22.5% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance raised

California Resources raised its 4Q26E Other operating expenses net of other revenue outlook on Nov 2, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -3.6% over the last twelve months and averaged 24.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -1.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

California Resources's return on equity of -3.6% is below the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -3.8% over the last twelve months, against a 5-year average of 18.7%.

Net margin below the industry

California Resources's net margin of -3.8% is below the Crude Petroleum and Natural Gas median of 3.8%.

Low debt

Debt is 37.7% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 52.5% five years ago to 37.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 68.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.66 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.37; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

California Resources paid dividends worth 3.4% of the share price over the last twelve months.

Yield below Treasuries

The 3.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; California Resources yields 3.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 35.8% of free cash flow.