📊 CRC Key Takeaways
Investment Thesis
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.
CRC 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
CRC 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
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
CRC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CRC Profitability Ratios
CRC vs Energy Sector
How California Resources Corp compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CRC Balance Sheet & Liquidity
CRC 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 Growth Metrics (YoY)
CRC Quarterly 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.
CRC Capital Allocation
CRC SEC Filings
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 an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRC's 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.
What are the risks of investing in CRC?
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.
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?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.