California Resources Corporation Common Stock (CRC)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what I know. California Resources produces oil and gas in California and is trying to build a carbon management business. The core E&P business is cyclical and commodity-driven, so it lacks the durable pricing power I look for. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.1B and net income $514.0M, a strong result. But fiscal Q1 2026, the quarter ended 2026-03-31, showed revenue of $905.0M and a net loss of $711.0M. For FY2025, revenue was $2.9B and net income $363.0M; FY2023 net income was $564.0M. Those swings tell me earnings are not dependable. Still, TTM free cash flow is $876.0M, an 18.2% FCF yield on the $4.8B market cap, and Piotroski is 7/9. Debt/equity is 0.40 and dividend yield is 3.00%, but Altman Z-Score is 1.11, which is not comforting. At $54.22 on 2026-10-13, P/B is 1.42 and P/E is negative at -43.38, reflecting trailing EPS of -$1.25. EV/EBITDA of 11.41 is not a bargain for a cyclical. Carbon management could add value but is unproven. I would call this a fair-to-cheap cash-flow story with weak earnings quality and no moat. Margin of safety depends on oil prices; that is speculation, not certainty.

In plain English: California Resources is an oil and gas producer in California that also works on carbon management. The business generates a lot of cash, but profits swing sharply with energy prices; last quarter was strong while the prior quarter had a large loss. At the recent price, the shares look roughly fair to somewhat cheap based on cash flow, but not clearly cheap given the weak and uneven earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer