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In a market where value is scarce, NYSE:CRC offers a refreshing opportunity with its solid fundamentals.

By Mill Chart

Last update: Apr 1, 2024

Uncover the potential of CALIFORNIA RESOURCES CORP (NYSE:CRC) as our stock screener's choice for an undervalued stock. NYSE:CRC maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NYSE:CRC

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CRC was assigned a score of 7 for valuation:

  • CRC is valuated reasonably with a Price/Earnings ratio of 10.78.
  • Compared to an average S&P500 Price/Earnings ratio of 26.50, CRC is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.23 indicates a reasonable valuation of CRC.
  • CRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRC is cheaper than 70.89% of the companies in the same industry.
  • CRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.80.
  • Based on the Enterprise Value to EBITDA ratio, CRC is valued a bit cheaper than the industry average as 77.00% of the companies are valued more expensively.
  • CRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRC is cheaper than 71.83% of the companies in the same industry.
  • CRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of CRC 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.

A Closer Look at Profitability for NYSE:CRC

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRC, the assigned 6 is noteworthy for profitability:

  • CRC has a Return On Assets of 14.11%. This is in the better half of the industry: CRC outperforms 79.34% of its industry peers.
  • With a decent Return On Equity value of 25.42%, CRC is doing good in the industry, outperforming 71.83% of the companies in the same industry.
  • The Return On Invested Capital of CRC (16.61%) is better than 78.87% 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.
  • CRC's Profit Margin has improved in the last couple of years.
  • In the last couple of years the Operating Margin of CRC has grown nicely.
  • Looking at the Gross Margin, with a value of 70.65%, CRC is in the better half of the industry, outperforming 74.18% of the companies in the same industry.

Health Insights: NYSE:CRC

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CRC was assigned a score of 7 for health:

  • An Altman-Z score of 3.22 indicates that CRC is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.22, CRC is in the better half of the industry, outperforming 75.59% of the companies in the same industry.
  • 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.
  • CRC has a better Debt to FCF ratio (1.15) than 83.10% of its industry peers.
  • CRC has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • CRC's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. CRC outperforms 65.73% of its industry peers.
  • With a decent Current ratio value of 1.51, CRC is doing good in the industry, outperforming 66.20% of the companies in the same industry.
  • Looking at the Quick ratio, with a value of 1.39, CRC is in the better half of the industry, outperforming 68.08% of the companies in the same industry.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CRC has earned a 6 for growth:

  • The Earnings Per Share has been growing by 32.95% on average over the past years. This is a very strong growth
  • The Earnings Per Share is expected to grow by 27.03% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, CRC will show a very strong growth in Revenue. The Revenue will grow by 22.14% on average per year.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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CALIFORNIA RESOURCES CORP

NYSE:CRC (5/17/2024, 7:04:00 PM)

After market: 49.4 0 (0%)

49.4

+0.15 (+0.3%)

CRC News

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CRC stock results show that California Resources beat analyst estimates for earnings per share but missed on revenue for the first quarter of 2024.

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InvestorPlace - Stock Market News, Stock Advice & Trading Tips California Resources (NYSE:CRC) just reported results for the first quarter of ...

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/PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws...

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California Resources (CRC) declares $0.31/share quarterly dividend, in line with previous. Forward yield 2.25% Payable March 6; for shareholders of record March

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