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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
18.9%
Sector: 6.7%
Dividend Analysis audit
INCOME
2.91%
Trailing Yield
$2.91
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
25%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, California Resources Corp (CRC) receives a "Hold" rating with a composite score of 50.6/100, ranked #179 out of 4446 stocks. Key factor scores: Quality 50/100, Value 71/100, Momentum 64/100. This is quantitative analysis only — not investment advice.
California Resources Corp (CRC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does California Resources Corp Do?
California Resources Corporation operates as an independent oil and natural gas company. The company explores for, produces, gathers, processes, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. As of December 31, 2021, it had interests in approximately 1.9 million net mineral acres with proved reserves totaled an estimated 480 million barrels of oil equivalent. The company also engages in the generation and sale of electricity to the local utility and the grid. The company was incorporated in 2014 and is based in Santa Clarita, California. California Resources Corp (CRC) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Mark A. McFarland and employs approximately 1,060 people, headquartered in Los Angeles, California. With a market capitalization of $5.9B, CRC is one of the notable companies in the Energy sector.
California Resources Corp (CRC) Stock Rating — Hold (April 2026)
As of April 2026, California Resources Corp receives a Hold rating with a composite score of 50.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CRC ranks #179 out of 4,446 stocks in our coverage universe. Within the Energy sector, California Resources Corp ranks #33 of 128 stocks, placing it in the upper half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CRC Stock Price and 52-Week Range
California Resources Corp (CRC) currently trades at $66.55. The stock gained $0.55 (0.8%) in the most recent trading session. The 52-week high for CRC is $65.68, which means the stock is currently trading 1.3% from its annual peak. The 52-week low is $30.97, putting the stock 114.9% above its annual trough. Recent trading volume was 708K shares, suggesting relatively thin trading activity.
Is CRC Overvalued or Undervalued? — Valuation Analysis
California Resources Corp (CRC) carries a value factor score of 71/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.74x, compared to the Energy sector average of 19.63x — a discount of 55%. The price-to-book ratio stands at 1.66x, versus the sector average of 1.64x. The price-to-sales ratio is 1.48x, compared to 0.47x for the average Energy stock. On an enterprise value basis, CRC trades at 5.69x EV/EBITDA, versus 3.50x for the sector.
Based on these multiples, California Resources Corp appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
California Resources Corp Profitability — ROE, Margins, and Quality Score
California Resources Corp (CRC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 18.9%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 9.4% versus the sector average of 3.7%.
On a margin basis, California Resources Corp reports gross margins of 91.0%, compared to 52.7% for the sector. The operating margin is 24.4% (sector: 10.7%). Net profit margin stands at 15.8%, versus 6.4% for the average Energy stock. Revenue growth is running at 66.3% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CRC Debt, Balance Sheet, and Financial Health
California Resources Corp has a debt-to-equity ratio of 101.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.89x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $1.01B. Cash and equivalents stand at $196M.
CRC has a beta of 1.14, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for California Resources Corp is 59/100, reflecting average volatility within the normal range for its sector.
California Resources Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, California Resources Corp reported revenue of $4.10B and earnings per share (EPS) of $4.17. Net income for the quarter was $696M. Gross margin was 91.0%. Operating income came in at $1.07B.
In FY 2025, California Resources Corp reported revenue of $3.67B and earnings per share (EPS) of $4.17. Net income for the quarter was $363M. Revenue grew 14.7% year-over-year compared to FY 2024. Operating income came in at $598M.
In Q3 2025, California Resources Corp reported revenue of $855M and earnings per share (EPS) of $0.76. Net income for the quarter was $64M. Revenue grew -36.8% year-over-year compared to Q3 2024. Operating income came in at $98M.
In Q2 2025, California Resources Corp reported revenue of $978M and earnings per share (EPS) of $1.93. Net income for the quarter was $172M. Revenue grew 90.3% year-over-year compared to Q2 2024. Operating income came in at $267M.
Over the past 8 quarters, California Resources Corp has demonstrated a growth trajectory, with revenue expanding from $514M to $4.10B. Investors analyzing CRC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CRC Dividend Yield and Income Analysis
California Resources Corp (CRC) currently pays a dividend yield of 2.9%. At this yield, a $10,000 investment in CRC stock would generate approximately $$291.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning CRC offers above-average income for its sector. With a net margin of 15.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
CRC Momentum and Technical Analysis Profile
California Resources Corp (CRC) has a momentum factor score of 64/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 9/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CRC vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing CRC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CRC vs S&P 500 (SPY) comparison to assess how California Resources Corp stacks up against the broader market across all factor dimensions.
CRC Next Earnings Date
No upcoming earnings date has been announced for California Resources Corp (CRC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CRC? — Investment Thesis Summary
California Resources Corp presents a balanced picture with arguments on both sides. The value score of 71/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 64/100, suggesting the trend favors buyers.
In summary, California Resources Corp (CRC) earns a Hold rating with a composite score of 50.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CRC stock.
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Institutional Research Dossier
California Resources Corp (CRC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
California Resources Corporation (CRC) receives a Hold rating, reflecting a balanced assessment of its attractive valuation metrics against the inherent volatility and cyclicality of the energy sector, coupled with the specific regulatory challenges of operating in California. While CRC exhibits compelling value characteristics and strong profitability compared to its peers, the long-term sustainability of its business model in a state aggressively pursuing decarbonization remains a significant concern, justifying a neutral stance.
The company's ability to generate substantial free cash flow and maintain a relatively healthy balance sheet provides a buffer against near-term headwinds. However, the long-term investment case hinges on CRC's success in navigating the evolving energy landscape and potentially pivoting towards carbon capture or other sustainable energy initiatives, which currently lack sufficient visibility to warrant a more bullish outlook.
Business Strategy & Overview
California Resources Corporation (CRC) operates as an independent oil and natural gas company focused on exploration, production, and marketing of crude oil, natural gas, and natural gas liquids, primarily within California. The company's business model is predicated on extracting and processing these resources for sale to California refineries, marketers, and other purchasers with access to transportation and storage facilities. CRC also engages in electricity generation and sales to the local utility grid, providing a small degree of diversification.
CRC's strategic positioning is heavily influenced by its geographic concentration in California, a region with stringent environmental regulations and a strong commitment to reducing carbon emissions. This presents both challenges and opportunities. The challenges include increased regulatory scrutiny, potential restrictions on drilling and production activities, and the need to invest in technologies to mitigate environmental impact. The opportunities lie in potentially leveraging its existing infrastructure and expertise to develop carbon capture and storage (CCS) projects, which could qualify for government incentives and help the state achieve its climate goals.
The company's product pipeline primarily consists of ongoing exploration and development of its existing acreage. Given the regulatory environment, CRC's capital allocation decisions are likely focused on maximizing production from existing wells and optimizing operational efficiency rather than pursuing large-scale expansion projects. The company's ability to adapt to the changing energy landscape will be crucial for its long-term success.
In the broader industry context, CRC operates within a competitive market for oil and natural gas, facing competition from both domestic and international producers. However, its focus on the California market provides a degree of insulation from global price fluctuations and supply chain disruptions. The company's ability to maintain a low-cost production base and secure long-term contracts with local refineries will be key to its competitive advantage.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
66.3%
Sector: -1.2%
-5770% VS SCTR
Economic Moat Analysis
California Resources Corporation's economic moat is best characterized as Narrow. While the company possesses certain advantages, they are not sufficiently durable or wide-ranging to create a significant barrier to entry or protect its profitability over the long term. The primary source of CRC's narrow moat stems from its cost advantages and intangible assets, specifically its extensive land holdings and established infrastructure within California.
The company's significant acreage position (approximately 1.9 million net mineral acres) provides a competitive edge by allowing it to control a substantial portion of the state's oil and gas reserves. This scale enables CRC to achieve economies of scale in production and transportation, resulting in lower per-barrel costs compared to smaller, less integrated operators. Furthermore, the company's existing infrastructure, including pipelines, processing facilities, and storage tanks, represents a significant sunk cost that would be difficult for new entrants to replicate.
However, these advantages are tempered by several factors. First, the regulatory environment in California is highly restrictive, which increases the cost of doing business and limits the potential for expansion. Second, the state's commitment to decarbonization poses a long-term threat to the demand for CRC's products. Third, the company's reserves are finite and will eventually be depleted, requiring ongoing investment in exploration and development to maintain production levels.
The absence of a wider moat is further underscored by the lack of strong brand recognition or customer loyalty. Crude oil and natural gas are largely commodity products, and CRC's customers (primarily refineries and marketers) are primarily concerned with price and availability. Therefore, the company has limited pricing power and is vulnerable to competition from other producers.
While CRC's cost advantages and intangible assets provide a degree of protection against competition, they are not insurmountable. The company's long-term success will depend on its ability to adapt to the changing energy landscape and potentially diversify into renewable energy or carbon capture technologies. Without a significant shift in strategy, CRC's narrow moat is likely to erode over time.
Financial Health & Profitability
California Resources Corporation's financial health presents a mixed picture. The company demonstrates strong profitability metrics relative to the energy sector, but its balance sheet carries a significant debt load, and its current ratio indicates potential liquidity concerns. The company's gross margin of 91.0% and operating margin of 24.4% significantly outperform the sector averages of 55.1% and 10.6%, respectively, suggesting efficient operations and cost management. Similarly, its net margin of 15.8% is more than double the sector average of 6.3%, highlighting its ability to translate revenue into profit.
However, CRC's debt-to-equity ratio of 101.00 is considerably higher than the sector average of 55.00, indicating a greater reliance on debt financing. This leverage amplifies both potential gains and losses, making the company more vulnerable to fluctuations in commodity prices and interest rates. The current ratio of 0.89, below the threshold of 1.0, suggests that the company's current liabilities exceed its current assets, potentially posing a short-term liquidity risk.
Analyzing the quarterly financial history reveals some volatility in CRC's performance. While FY2025 shows a solid revenue of $3.67B and net income of $363.00M, the quarterly results exhibit fluctuations in both revenue and profitability. For example, Q3 2024 saw a substantial net income of $345.00M, while Q1 2024 resulted in a net loss of $10.00M. This variability underscores the cyclical nature of the energy industry and the impact of commodity price volatility on CRC's financial results.
The company's revenue growth of 66.3% significantly exceeds the sector average of -1.7%, indicating strong demand for its products and effective market positioning. However, it's crucial to consider the base effect, as the company may be recovering from a period of lower revenue in the prior year. The free cash flow of $233.63M provides some financial flexibility, but it's essential to monitor this metric closely to ensure the company can meet its debt obligations and fund future investments.
Overall, CRC's financial health is characterized by strong profitability and revenue growth, offset by a high debt load and potential liquidity concerns. The company's ability to manage its debt, maintain its profitability, and generate consistent free cash flow will be critical for its long-term financial stability.
Valuation Assessment
California Resources Corporation's valuation metrics suggest that the stock is undervalued relative to its peers in the energy sector. The company's P/E ratio of 15.2x is lower than the sector average of 19.5x, indicating that investors are paying less for each dollar of CRC's earnings compared to other energy companies. Similarly, its EV/EBITDA ratio of 2.4x is significantly below the sector average of 3.5x, suggesting that the company's enterprise value is low relative to its earnings before interest, taxes, depreciation, and amortization.
These valuation discrepancies could be attributed to several factors, including the perceived risk associated with operating in California's stringent regulatory environment, concerns about the long-term demand for fossil fuels, and the company's high debt load. However, the company's strong profitability and revenue growth may not be fully reflected in its current valuation.
The company's ROE of 18.9% significantly exceeds the sector average of 6.9%, indicating that CRC is generating a higher return on equity compared to its peers. This superior profitability could justify a higher valuation multiple. However, investors may be discounting the company's future earnings due to the uncertainty surrounding the long-term outlook for the oil and gas industry in California.
The free cash flow yield, while not explicitly provided, can be inferred from the free cash flow of $233.63M and the market cap of $5.63B. This suggests a FCF yield of approximately 4.15%, which is reasonable but not exceptionally high. A higher FCF yield would typically indicate a more undervalued stock.
Overall, CRC's valuation appears attractive based on its P/E and EV/EBITDA ratios, but the market may be discounting the stock due to regulatory risks and concerns about long-term demand. A more comprehensive valuation analysis would require a discounted cash flow (DCF) model to assess the intrinsic value of the company based on its projected future cash flows.
Risk & Uncertainty
California Resources Corporation faces several significant risks and uncertainties that could materially impact its business and financial performance. The most prominent risk is the regulatory environment in California. The state's aggressive pursuit of decarbonization and its stringent environmental regulations pose a constant threat to CRC's operations. Increased restrictions on drilling, production, and transportation of oil and gas could significantly reduce the company's output and profitability.
Another key risk is commodity price volatility. The price of crude oil and natural gas is subject to significant fluctuations due to global supply and demand dynamics, geopolitical events, and economic conditions. A sharp decline in commodity prices could negatively impact CRC's revenue and earnings, potentially leading to financial distress.
Debt burden also presents a considerable risk. CRC's high debt-to-equity ratio makes it vulnerable to rising interest rates and economic downturns. The company's ability to service its debt obligations could be compromised if its revenue declines or its operating costs increase.
Technological disruption poses a long-term risk. The increasing adoption of renewable energy sources and the development of alternative technologies could reduce the demand for fossil fuels, potentially rendering CRC's assets obsolete. The company's ability to adapt to these technological changes and diversify into new energy sources will be crucial for its long-term survival.
Finally, operational risks, such as equipment failures, accidents, and natural disasters, could disrupt CRC's production and increase its costs. The company's ability to mitigate these risks through effective safety management and risk mitigation strategies is essential for maintaining its operational efficiency and profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCRC's discounted valuation relative to peers offers significant upside potential as the market re-rates the company's strong free cash flow generation in a high commodity price environment.
BULL VIEWThe company's strategic focus on California allows it to capitalize on the state's unique energy market dynamics and potentially benefit from government incentives for carbon capture and storage projects.
BULL VIEWCRC's high operating margins and efficient cost structure provide a competitive advantage, enabling it to weather commodity price volatility and generate consistent profits.
The Bear Case
BEAR VIEWCalifornia's increasingly stringent environmental regulations will severely limit CRC's ability to expand production and ultimately lead to a decline in its reserves and profitability.
BEAR VIEWThe company's high debt load makes it vulnerable to rising interest rates and a potential economic downturn, increasing the risk of financial distress.
BEAR VIEWThe long-term decline in demand for fossil fuels will render CRC's assets obsolete, resulting in a significant erosion of shareholder value.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CRC and 4,400+ other equities.
California Resources Corp exhibits a 56% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
9.4%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
91.0%
Sector: 52.7%
Operating Margin
Core business profitability
24.4%
Sector: 10.7%
Net Margin
Bottom-line profitability
15.8%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+54%
Income Projection audit
A $10,000 investment would generate approximately $291 annually in dividends at the current trailing rate.
