NYSE:CRC, an undervalued stock with good fundamentals.

Last update: Mar 11, 2024

Consider CALIFORNIA RESOURCES CORP (NYSE:CRC) as a top value stock, identified by our stock screening tool. NYSE:CRC shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Assessing Valuation Metrics for NYSE:CRC

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CRC scores a 8 out of 10:

A Price/Earnings ratio of 9.46 indicates a reasonable valuation of CRC.
The average S&P500 Price/Earnings ratio is at 25.97. CRC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.10, the valuation of CRC can be described as reasonable.
73.24% of the companies in the same industry are more expensive than CRC, based on the Price/Forward Earnings ratio.
CRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.31, which is the current average of the S&P500 Index.
80.28% of the companies in the same industry are more expensive than CRC, based on the Enterprise Value to EBITDA ratio.
CRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRC is cheaper than 74.65% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CRC's earnings are expected to grow with 27.03% in the coming years.

How do we evaluate the Profitability for NYSE:CRC?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CRC has earned a 6 out of 10:

The Return On Assets of CRC (14.11%) is better than 77.93% of its industry peers.
With a decent Return On Equity value of 25.42%, CRC is doing good in the industry, outperforming 70.42% of the companies in the same industry.
CRC has a Return On Invested Capital of 16.61%. This is in the better half of the industry: CRC outperforms 78.40% of its industry peers.
The last Return On Invested Capital (16.61%) for CRC is above the 3 year average (13.15%), which is a sign of increasing profitability.
In the last couple of years the Profit Margin of CRC has grown nicely.
CRC's Operating Margin has improved in the last couple of years.
CRC has a better Gross Margin (70.65%) than 74.18% of its industry peers.

Health Analysis for NYSE:CRC

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CRC scores a 7 out of 10:

CRC has an Altman-Z score of 3.05. This indicates that CRC is financially healthy and has little risk of bankruptcy at the moment.
CRC's Altman-Z score of 3.05 is fine compared to the rest of the industry. CRC outperforms 75.12% of its industry peers.
CRC has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.15, CRC belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
CRC has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
CRC has a Debt to Equity ratio of 0.24. This is in the better half of the industry: CRC outperforms 66.20% of its industry peers.
CRC's Current ratio of 1.51 is fine compared to the rest of the industry. CRC outperforms 66.20% of its industry peers.
CRC has a Quick ratio of 1.39. This is in the better half of the industry: CRC outperforms 68.08% of its industry peers.

Growth Examination for NYSE:CRC

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CRC scores a 6 out of 10:

CRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.95% yearly.
The Earnings Per Share is expected to grow by 27.03% on average over the next years. This is a very strong growth
CRC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.14% yearly.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of CRC for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.