📊 CRC Key Takeaways
Is California Resources Corp (CRC) a Good Investment?
CRC demonstrates solid operational performance with strong revenue growth of 26.1% YoY and impressive free cash flow generation of $543M, providing substantial financial flexibility. However, the company faces structural challenges including weak liquidity (0.89x current ratio) and modest profitability margins (9.9% net margin) that warrant cautious exposure despite positive cash generation trends.
California Resources shows solid core fundamentals with strong revenue growth, healthy operating profitability, and robust free cash flow generation. Balance sheet leverage appears manageable, but below-1.0 liquidity ratios, limited cash on hand, and declining net income/EPS despite higher revenue suggest earnings quality and near-term financial flexibility need close monitoring. Overall, the business looks fundamentally stable but not strong enough to justify a more aggressive rating without clearer margin expansion and liquidity improvement.
Why Buy California Resources Corp Stock? CRC Key Strengths
- Strong revenue growth of 26.1% YoY indicates robust commodity price environment and/or production gains
- Excellent free cash flow generation of $543M with 14.8% FCF margin demonstrates strong cash conversion from operations
- Conservative leverage with 0.35x debt-to-equity ratio provides financial stability and debt service capacity
- Operating cash flow of $865M significantly exceeds capital expenditure needs, supporting dividend sustainability and debt reduction
- Revenue grew 26.1% year over year, indicating strong top-line momentum
- Free cash flow of $543M and a 14.8% FCF margin support internal funding capacity
- Debt/equity of 0.35x indicates moderate leverage relative to equity
CRC Stock Risks: California Resources Corp Investment Risks
- Weak liquidity position with current ratio of 0.89x below 1.0x threshold raises near-term operational flexibility concerns
- Declining net income (-3.5% YoY) and diluted EPS (-10.2% YoY) despite revenue growth suggests margin compression or increased costs
- Cyclical commodity price exposure creates earnings volatility; revenue growth heavily dependent on crude/natural gas prices
- Modest net margin of 9.9% and ROE of 9.9% indicate limited competitive advantages or operational efficiency relative to industry peers
- High insider trading activity (32 Form 4 filings) warrants monitoring for potential negative signals
- Current ratio of 0.89x and quick ratio of 0.79x point to weak near-term liquidity
- Net income fell 3.5% and diluted EPS fell 10.2% despite higher revenue, suggesting margin pressure or lower earnings quality
- Low cash balance of $132M reduces flexibility in a cyclical commodity business
Key Metrics to Watch
- Operating margin sustainability and cost structure trends amid commodity price volatility
- Free cash flow generation and capital allocation decisions (debt reduction vs. shareholder returns)
- Current ratio improvement and working capital management to address liquidity constraints
- Production volumes and reserve replacement rates to assess long-term asset value
- Operating margin and free cash flow conversion
- Current ratio and cash balance
California Resources Corp (CRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CRC Profit Margin, ROE & Profitability Analysis
CRC vs Energy Sector: How California Resources Corp Compares
How California Resources Corp compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is California Resources Corp Stock Overvalued? CRC Valuation Analysis 2026
Based on fundamental analysis, California Resources Corp has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
California Resources Corp Balance Sheet: CRC Debt, Cash & Liquidity
CRC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: California Resources Corp's revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.78 reflects profitable operations.
CRC Revenue Growth, EPS Growth & YoY Performance
CRC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $715.0M | $64.0M | $0.76 |
| Q2 2025 | $412.0M | -$2.0M | $-0.03 |
| Q1 2025 | $429.0M | -$10.0M | $-0.14 |
| Q3 2024 | $510.0M | -$22.0M | $-0.32 |
| Q2 2024 | $412.0M | -$2.0M | $-0.03 |
| Q1 2024 | $429.0M | -$10.0M | $-0.14 |
| Q3 2023 | $510.0M | -$22.0M | $-0.32 |
| Q2 2023 | $447.0M | $15.0M | $0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
California Resources Corp Dividends, Buybacks & Capital Allocation
CRC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for California Resources Corp (CIK: 0001609253)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRC
What is the AI rating for CRC?
California Resources Corp (CRC) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRC's key strengths?
Claude: Strong revenue growth of 26.1% YoY indicates robust commodity price environment and/or production gains. Excellent free cash flow generation of $543M with 14.8% FCF margin demonstrates strong cash conversion from operations. ChatGPT: Revenue grew 26.1% year over year, indicating strong top-line momentum. Free cash flow of $543M and a 14.8% FCF margin support internal funding capacity.
What are the risks of investing in CRC?
Claude: Weak liquidity position with current ratio of 0.89x below 1.0x threshold raises near-term operational flexibility concerns. Declining net income (-3.5% YoY) and diluted EPS (-10.2% YoY) despite revenue growth suggests margin compression or increased costs. ChatGPT: Current ratio of 0.89x and quick ratio of 0.79x point to weak near-term liquidity. Net income fell 3.5% and diluted EPS fell 10.2% despite higher revenue, suggesting margin pressure or lower earnings quality.
What is CRC's revenue and growth?
California Resources Corp reported revenue of $3.7B.
Does CRC pay dividends?
California Resources Corp pays dividends, with $330.0M distributed to shareholders in the trailing twelve months.
Where can I find CRC SEC filings?
Official SEC filings for California Resources Corp (CIK: 0001609253) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRC's EPS?
California Resources Corp has a diluted EPS of $4.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CRC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, California Resources Corp has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CRC stock overvalued or undervalued?
Valuation metrics for CRC: ROE of 9.9% (sector avg: 14%), net margin of 9.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CRC stock in 2026?
Our dual AI analysis gives California Resources Corp a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CRC's free cash flow?
California Resources Corp's operating cash flow is $865.0M, with capital expenditures of $322.0M. FCF margin is 14.8%.
How does CRC compare to other Energy stocks?
Vs Energy sector averages: Net margin 9.9% (avg: 12%), ROE 9.9% (avg: 14%), current ratio 0.89 (avg: 1.3).