CALIFORNIA RESOURCES CORP (CRC) Stock Fundamental Analysis
NYSE:CRC - New York Stock Exchange, Inc. - US13057Q3056 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CRC. CRC was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. While CRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CRC had positive earnings in the past year.
CRC had a positive operating cash flow in the past year.
CRC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.45%, CRC is in the better half of the industry, outperforming 64.22% of the companies in the same industry.
CRC has a Return On Equity of 15.17%. This is in the better half of the industry: CRC outperforms 63.24% of its industry peers.
With a decent Return On Invested Capital value of 10.41%, CRC is doing good in the industry, outperforming 68.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRC is significantly below the industry average of 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 15.17% | ||
| ROIC | 10.41% |
ROA(3y)14.41%
ROA(5y)20.81%
ROE(3y)29.93%
ROE(5y)N/A
ROIC(3y)13.15%
ROIC(5y)N/A
1.3 Margins
CRC has a better Profit Margin (17.43%) than 62.25% of its industry peers.
CRC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.50%, CRC is in the better half of the industry, outperforming 62.25% of the companies in the same industry.
In the last couple of years the Operating Margin of CRC has grown nicely.
CRC has a better Gross Margin (72.79%) than 80.39% of its industry peers.
CRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.5% | ||
| PM (TTM) | 17.43% | ||
| GM | 72.79% |
OM growth 3YN/A
OM growth 5Y2.07%
PM growth 3Y-44.95%
PM growth 5Y13.96%
GM growth 3Y5.65%
GM growth 5Y0.12%
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 reduced compared to 1 year ago.
CRC has more shares outstanding than it did 5 years ago.
CRC has a better debt/assets ratio than last year.
2.2 Solvency
CRC has an Altman-Z score of 1.89. This is not the best score and indicates that CRC is in the grey zone with still only limited risk for bankruptcy at the moment.
CRC has a Altman-Z score (1.89) which is comparable to the rest of the industry.
The Debt to FCF ratio of CRC is 3.75, which is a good value as it means it would take CRC, 3.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.75, CRC is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that CRC is not too dependend on debt financing.
CRC's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. CRC outperforms 57.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.2
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.97 indicates that CRC may have some problems paying its short term obligations.
With a Current ratio value of 0.97, CRC is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
CRC has a Quick Ratio of 0.97. This is a bad value and indicates that CRC is not financially healthy enough and could expect problems in meeting its short term obligations.
CRC's Quick ratio of 0.89 is on the low side compared to the rest of the industry. CRC is outperformed by 61.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
CRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.26%.
CRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.95% yearly.
Looking at the last year, CRC shows a quite strong growth in Revenue. The Revenue has grown by 10.52% in the last year.
The Revenue has been decreasing by -1.78% on average over the past years.
EPS 1Y (TTM)-30.26%
EPS 3Y-41.55%
EPS 5Y32.95%
EPS Q2Q%47.06%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y21.57%
Revenue growth 5Y-1.78%
Sales Q2Q%194.13%
3.2 Future
Based on estimates for the next years, CRC will show a decrease in Earnings Per Share. The EPS will decrease by -4.26% on average per year.
Based on estimates for the next years, CRC will show a quite strong growth in Revenue. The Revenue will grow by 8.05% on average per year.
EPS Next Y-24.07%
EPS Next 2Y-13.66%
EPS Next 3Y-6.43%
EPS Next 5Y-4.26%
Revenue Next Year18.56%
Revenue Next 2Y15.59%
Revenue Next 3Y9.72%
Revenue Next 5Y8.05%
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
With a Price/Earnings ratio of 12.53, CRC is valued correctly.
CRC's Price/Earnings ratio is in line with the industry average.
CRC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.43, CRC is valued correctly.
CRC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRC is valued a bit cheaper than 72.55% of the companies in the same industry.
CRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.33 | ||
| EV/EBITDA | 4.35 |
4.3 Compensation for Growth
CRC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CRC's earnings are expected to decrease with -6.43% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-13.66%
EPS Next 3Y-6.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, CRC has a reasonable but not impressive dividend return.
The stock price of CRC dropped by -20.54% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CRC's Dividend Yield is comparable with the industry average which is at 6.67.
Compared to an average S&P500 Dividend Yield of 2.27, CRC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
CRC has been paying a dividend for less than 5 years, so it still needs to build a 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
18.64% of the earnings are spent on dividend by CRC. This is a low number and sustainable payout ratio.
DP18.64%
EPS Next 2Y-13.66%
EPS Next 3Y-6.43%
47.35
-1.43 (-2.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.9%
Inst Owner Change-92.34%
Ins Owners0.47%
Ins Owner Change-7.18%
Market Cap4.33B
Analysts82.22
Price Target69.94 (47.71%)
Short Float %4.7%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend1.15
Dividend Growth(5Y)N/A
DP18.64%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.37%
Min EPS beat(2)-11.8%
Max EPS beat(2)11.07%
EPS beat(4)3
Avg EPS beat(4)4.45%
Min EPS beat(4)-11.8%
Max EPS beat(4)17.79%
EPS beat(8)5
Avg EPS beat(8)3.48%
EPS beat(12)7
Avg EPS beat(12)-2.02%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)24.52%
Min Revenue beat(2)10.76%
Max Revenue beat(2)38.28%
Revenue beat(4)3
Avg Revenue beat(4)14.37%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)38.28%
Revenue beat(8)5
Avg Revenue beat(8)7.15%
Revenue beat(12)8
Avg Revenue beat(12)11.59%
Revenue beat(16)9
Avg Revenue beat(16)6.4%
PT rev (1m)0.59%
PT rev (3m)4.37%
EPS NQ rev (1m)-5.63%
EPS NQ rev (3m)-5.63%
EPS NY rev (1m)-1.25%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)4.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 12.43 | ||
| P/S | 1.42 | ||
| P/FCF | 14.33 | ||
| P/OCF | 8.09 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 4.35 |
EPS(TTM)3.78
EY7.98%
EPS(NY)3.81
Fwd EY8.04%
FCF(TTM)3.31
FCFY6.98%
OCF(TTM)5.86
OCFY12.37%
SpS33.35
BVpS38.32
TBVpS38.32
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 15.17% | ||
| ROCE | 14.43% | ||
| ROIC | 10.41% | ||
| ROICexc | 10.83% | ||
| ROICexgc | 10.83% | ||
| OM | 29.5% | ||
| PM (TTM) | 17.43% | ||
| GM | 72.79% | ||
| FCFM | 9.91% |
ROA(3y)14.41%
ROA(5y)20.81%
ROE(3y)29.93%
ROE(5y)N/A
ROIC(3y)13.15%
ROIC(5y)N/A
ROICexc(3y)14.95%
ROICexc(5y)N/A
ROICexgc(3y)14.95%
ROICexgc(5y)N/A
ROCE(3y)18.23%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.06%
ROICexc growth 3YN/A
ROICexc growth 5Y18.06%
OM growth 3YN/A
OM growth 5Y2.07%
PM growth 3Y-44.95%
PM growth 5Y13.96%
GM growth 3Y5.65%
GM growth 5Y0.12%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 77.41% | ||
| Cap/Sales | 7.65% | ||
| Interest Coverage | 21.4 | ||
| Cash Conversion | 44.58% | ||
| Profit Quality | 56.87% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.89 |
F-Score5
WACC8.66%
ROIC/WACC1.2
Cap/Depr(3y)121.57%
Cap/Depr(5y)94.86%
Cap/Sales(3y)10.29%
Cap/Sales(5y)10.23%
Profit Quality(3y)72.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.26%
EPS 3Y-41.55%
EPS 5Y32.95%
EPS Q2Q%47.06%
EPS Next Y-24.07%
EPS Next 2Y-13.66%
EPS Next 3Y-6.43%
EPS Next 5Y-4.26%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y21.57%
Revenue growth 5Y-1.78%
Sales Q2Q%194.13%
Revenue Next Year18.56%
Revenue Next 2Y15.59%
Revenue Next 3Y9.72%
Revenue Next 5Y8.05%
EBIT growth 1Y37.46%
EBIT growth 3YN/A
EBIT growth 5Y0.26%
EBIT Next Year56.29%
EBIT Next 3Y22.99%
EBIT Next 5Y15.86%
FCF growth 1Y-26.34%
FCF growth 3Y99.43%
FCF growth 5YN/A
OCF growth 1Y-31.41%
OCF growth 3Y83.32%
OCF growth 5Y7.21%