California Resources Corporation Common Stock (CRC)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $545 million in annual free cash flow (9.5% yield on market cap)
• Solid return on equity of 10.1% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.37, providing financial flexibility
• Attractive 2.5% dividend yield providing steady income returns

Concerns

• Revenue declining at 13.6% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

California Resources Corporation Common Stock is a small-cap energy company valued at $5.7 billion. The business generates $3.4 billion in annual revenue with a 0.4% net margin and $545 million in free cash flow. From a quality standpoint, California shows distressed Altman Z-Score of 1.4 warrants caution and adequate 10% ROE. On valuation, the stock is reasonably priced at 15.7x earnings, with trades above its Graham Number with a negative 4% margin. Growth dynamics show revenue growing at -13.6% and profit growth of -63.6%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $545 million in annual free cash flow (9.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer