California Resources Corp. (CRC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chesapeake Energy Corp.

Coterra Energy, Inc.

California Resources Corp.

Matador Resources Co.

Chord Energy Corp.

Permian Resources Corp.

APA Corp.

Civitas Resources, Inc.

National Fuel Gas Co.

Southwestern Energy Co.

Denbury, Inc.

Why is California Resources Corp. ?

High Management Efficiency with a high ROE of 24.64%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.22

With ROE of 8.47%, it has a fair valuation with a 1.17 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.73%, its profits have risen by 22.1%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to California Resources Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is California Resources Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

California Resources Corp.

-13.23%

0.02

42.32%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.16%

EBIT Growth (5y)

13.49%

EBIT to Interest (avg)

13.22

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.90

Tax Ratio

28.12%

Dividend Payout Ratio

30.20%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

36.81%

ROE (avg)

24.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.17

EV to EBIT

6.55

EV to EBITDA

3.72

EV to Capital Employed

1.13

EV to Sales

1.47

PEG Ratio

Dividend Yield

196.57%

ROCE (Latest)

17.30%

ROE (Latest)

8.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

NET SALES(HY)

At USD 1,727 MM has Grown at 67.02%

NET PROFIT(HY)

At USD 170.46 MM has Grown at 120.34%

OPERATING CASH FLOW(Y)

Highest at USD 777 MM

DIVIDEND PER SHARE(HY)

Highest at USD 10.67

INVENTORY TURNOVER RATIO(HY)

Highest at 29.66 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.67 times

-9What is not working for the Company

INTEREST(HY)

At USD 52 MM has Grown at 73.33%

RAW MATERIAL COST(Y)

Grown by 11.8% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 29.94 %

Here's what is working for California Resources Corp.

Net Sales

At USD 1,727 MM has Grown at 67.02%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Net Profit

At USD 170.46 MM has Grown at 120.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 10.67 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 777 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 29.66 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for California Resources Corp.

Interest

At USD 52 MM has Grown at 73.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 29.94 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 11.8% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales