CALIFORNIA RESOURCES CORP (CRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRC - US13057Q3056 - Common Stock
51.18 USD
+0.5 (+0.99%)
We assign a fundamental rating of 5 out of 10 to CRC. CRC was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. CRC has only an average score on both its financial health and profitability. CRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CRC was profitable.
- CRC had a positive operating cash flow in the past year.
- Each year in the past 5 years CRC has been profitable.
- CRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.69%, CRC is in the better half of the industry, outperforming 69.08% of the companies in the same industry.
- CRC's Return On Equity of 11.15% is fine compared to the rest of the industry. CRC outperforms 66.67% of its industry peers.
- CRC's Return On Invested Capital of 9.14% is amongst the best of the industry. CRC outperforms 80.19% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CRC is significantly below the industry average of 21.94%.
- The 3 year average ROIC (14.73%) for CRC is well above the current ROIC(9.14%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 11.15% | ||
| ROIC | 9.14% |
ROA(3y)10.86%
ROA(5y)21.94%
ROE(3y)21.39%
ROE(5y)53.16%
ROIC(3y)14.73%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 10.60%, CRC is in line with its industry, outperforming 58.94% of the companies in the same industry.
- CRC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 19.85%, CRC is in line with its industry, outperforming 57.00% of the companies in the same industry.
- CRC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 65.49%, CRC is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
- In the last couple of years the Gross Margin of CRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.85% | ||
| PM (TTM) | 10.6% | ||
| GM | 65.49% |
OM growth 3Y27.28%
OM growth 5Y7.28%
PM growth 3Y-28.67%
PM growth 5YN/A
GM growth 3Y3.65%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
- CRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for CRC has been increased compared to 1 year ago.
- Compared to 5 years ago, CRC has more shares outstanding
- CRC has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.98 indicates that CRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CRC's Altman-Z score of 1.98 is fine compared to the rest of the industry. CRC outperforms 66.18% of its industry peers.
- CRC has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
- CRC has a Debt to FCF ratio of 1.85. This is amongst the best in the industry. CRC outperforms 83.57% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that CRC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, CRC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.03
WACC8.83%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that CRC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.89, CRC is doing worse than 62.32% of the companies in the same industry.
- A Quick Ratio of 0.78 indicates that CRC may have some problems paying its short term obligations.
- CRC's Quick ratio of 0.78 is on the low side compared to the rest of the industry. CRC is outperformed by 61.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- CRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.11%, which is quite impressive.
- Measured over the past years, CRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.50% on average per year.
- CRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.87%.
- Measured over the past years, CRC shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
EPS 1Y (TTM)20.11%
EPS 3Y-14.99%
EPS 5Y21.5%
EPS Q2Q%-2.67%
Revenue 1Y (TTM)18.87%
Revenue growth 3Y19.18%
Revenue growth 5Y3.96%
Sales Q2Q%-36.81%
3.2 Future
- Based on estimates for the next years, CRC will show a small growth in Earnings Per Share. The EPS will grow by 2.15% on average per year.
- Based on estimates for the next years, CRC will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y12.44%
EPS Next 2Y-27.32%
EPS Next 3Y-1.88%
EPS Next 5Y2.15%
Revenue Next Year16.45%
Revenue Next 2Y6.41%
Revenue Next 3Y5.37%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.27, the valuation of CRC can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of CRC indicates a somewhat cheap valuation: CRC is cheaper than 79.71% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, CRC is valued rather cheaply.
- The Price/Forward Earnings ratio is 25.77, which means the current valuation is very expensive for CRC.
- CRC's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of CRC to the average of the S&P500 Index (25.95), we can say CRC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.27 | ||
| Fwd PE | 25.77 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRC indicates a rather cheap valuation: CRC is cheaper than 85.51% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRC indicates a rather cheap valuation: CRC is cheaper than 88.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 3.82 |
4.3 Compensation for Growth
- CRC's 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.
PEG (NY)0.91
PEG (5Y)0.52
EPS Next 2Y-27.32%
EPS Next 3Y-1.88%
5. Dividend
5.1 Amount
- CRC has a Yearly Dividend Yield of 3.27%.
- Compared to an average industry Dividend Yield of 3.73, CRC has a dividend in line with its industry peers.
- CRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
- CRC has been paying a dividend for over 5 years, so it has already some track record.
- CRC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- CRC pays out 35.94% of its income as dividend. This is a sustainable payout ratio.
DP35.94%
EPS Next 2Y-27.32%
EPS Next 3Y-1.88%
CALIFORNIA RESOURCES CORP / CRC FAQ
What is the fundamental rating for CRC stock?
ChartMill assigns a fundamental rating of 5 / 10 to CRC.
What is the valuation status for CRC stock?
ChartMill assigns a valuation rating of 6 / 10 to CALIFORNIA RESOURCES CORP (CRC). This can be considered as Fairly Valued.
Can you provide the profitability details for CALIFORNIA RESOURCES CORP?
CALIFORNIA RESOURCES CORP (CRC) has a profitability rating of 6 / 10.
How financially healthy is CALIFORNIA RESOURCES CORP?
The financial health rating of CALIFORNIA RESOURCES CORP (CRC) is 4 / 10.
How sustainable is the dividend of CALIFORNIA RESOURCES CORP (CRC) stock?
The dividend rating of CALIFORNIA RESOURCES CORP (CRC) is 5 / 10 and the dividend payout ratio is 35.94%.