Intrinsic value of California Resources - CRC

Previous Close

$29.27

  Intrinsic Value

$73.20

stock screener

  Rating & Target

str. buy

+150%

Previous close

$29.27

 
Intrinsic value

$73.20

 
Up/down potential

+150%

 
Rating

str. buy

We calculate the intrinsic value of CRC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  29.70
  27.23
  25.01
  23.01
  21.21
  19.59
  18.13
  16.81
  15.63
  14.57
  13.61
  12.75
  11.98
  11.28
  10.65
  10.09
  9.58
  9.12
  8.71
  8.34
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.60
  6.44
  6.29
  6.16
Revenue, $m
  2,602
  3,310
  4,138
  5,090
  6,169
  7,378
  8,715
  10,180
  11,772
  13,487
  15,323
  17,277
  19,346
  21,528
  23,820
  26,223
  28,734
  31,354
  34,085
  36,926
  39,881
  42,953
  46,146
  49,463
  52,911
  56,495
  60,221
  64,097
  68,130
  72,329
Variable operating expenses, $m
  624
  794
  993
  1,222
  1,481
  1,771
  2,092
  2,443
  2,825
  3,237
  3,677
  4,146
  4,643
  5,167
  5,717
  6,293
  6,896
  7,525
  8,180
  8,862
  9,572
  10,309
  11,075
  11,871
  12,699
  13,559
  14,453
  15,383
  16,351
  17,359
Fixed operating expenses, $m
  1,548
  1,582
  1,617
  1,653
  1,689
  1,726
  1,764
  1,803
  1,843
  1,883
  1,925
  1,967
  2,010
  2,055
  2,100
  2,146
  2,193
  2,241
  2,291
  2,341
  2,393
  2,445
  2,499
  2,554
  2,610
  2,668
  2,726
  2,786
  2,848
  2,910
Total operating expenses, $m
  2,172
  2,376
  2,610
  2,875
  3,170
  3,497
  3,856
  4,246
  4,668
  5,120
  5,602
  6,113
  6,653
  7,222
  7,817
  8,439
  9,089
  9,766
  10,471
  11,203
  11,965
  12,754
  13,574
  14,425
  15,309
  16,227
  17,179
  18,169
  19,199
  20,269
Operating income, $m
  429
  933
  1,528
  2,216
  3,000
  3,881
  4,859
  5,934
  7,104
  8,367
  9,721
  11,163
  12,692
  14,306
  16,004
  17,783
  19,645
  21,588
  23,614
  25,723
  27,917
  30,199
  32,572
  35,038
  37,602
  40,268
  43,042
  45,927
  48,931
  52,060
EBITDA, $m
  1,180
  1,889
  2,722
  3,685
  4,781
  6,011
  7,375
  8,873
  10,502
  12,260
  14,144
  16,151
  18,277
  20,521
  22,881
  25,354
  27,940
  30,640
  33,454
  36,383
  39,431
  42,600
  45,894
  49,318
  52,877
  56,578
  60,427
  64,432
  68,601
  72,942
Interest expense (income), $m
  0
  345
  360
  488
  638
  810
  1,006
  1,225
  1,467
  1,732
  2,021
  2,331
  2,664
  3,018
  3,392
  3,787
  4,203
  4,638
  5,093
  5,567
  6,062
  6,576
  7,112
  7,668
  8,246
  8,847
  9,471
  10,121
  10,795
  11,497
  12,228
Earnings before tax, $m
  84
  574
  1,040
  1,578
  2,189
  2,875
  3,634
  4,467
  5,371
  6,346
  7,389
  8,499
  9,675
  10,914
  12,216
  13,581
  15,007
  16,495
  18,046
  19,661
  21,341
  23,088
  24,904
  26,792
  28,755
  30,797
  32,921
  35,132
  37,434
  39,832
Tax expense, $m
  23
  155
  281
  426
  591
  776
  981
  1,206
  1,450
  1,713
  1,995
  2,295
  2,612
  2,947
  3,298
  3,667
  4,052
  4,454
  4,872
  5,308
  5,762
  6,234
  6,724
  7,234
  7,764
  8,315
  8,889
  9,486
  10,107
  10,755
Net income, $m
  61
  419
  759
  1,152
  1,598
  2,099
  2,653
  3,261
  3,921
  4,633
  5,394
  6,205
  7,063
  7,967
  8,918
  9,914
  10,955
  12,042
  13,174
  14,352
  15,579
  16,854
  18,180
  19,558
  20,991
  22,482
  24,032
  25,646
  27,327
  29,077

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  8,055
  10,248
  12,811
  15,759
  19,100
  22,841
  26,982
  31,518
  36,445
  41,755
  47,439
  53,488
  59,894
  66,649
  73,747
  81,185
  88,960
  97,073
  105,525
  114,322
  123,471
  132,982
  142,866
  153,137
  163,811
  174,906
  186,442
  198,442
  210,930
  223,930
Adjusted assets (=assets-cash), $m
  8,055
  10,248
  12,811
  15,759
  19,100
  22,841
  26,982
  31,518
  36,445
  41,755
  47,439
  53,488
  59,894
  66,649
  73,747
  81,185
  88,960
  97,073
  105,525
  114,322
  123,471
  132,982
  142,866
  153,137
  163,811
  174,906
  186,442
  198,442
  210,930
  223,930
Revenue / Adjusted assets
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
Average production assets, $m
  7,511
  9,557
  11,947
  14,695
  17,811
  21,299
  25,160
  29,391
  33,985
  38,937
  44,237
  49,878
  55,851
  62,150
  68,769
  75,705
  82,955
  90,520
  98,402
  106,606
  115,137
  124,006
  133,223
  142,800
  152,754
  163,100
  173,858
  185,048
  196,692
  208,815
Working capital, $m
  -260
  -331
  -414
  -509
  -617
  -738
  -872
  -1,018
  -1,177
  -1,349
  -1,532
  -1,728
  -1,935
  -2,153
  -2,382
  -2,622
  -2,873
  -3,135
  -3,408
  -3,693
  -3,988
  -4,295
  -4,615
  -4,946
  -5,291
  -5,649
  -6,022
  -6,410
  -6,813
  -7,233
Total debt, $m
  5,535
  7,509
  9,815
  12,468
  15,475
  18,842
  22,568
  26,651
  31,086
  35,865
  40,980
  46,424
  52,189
  58,269
  64,658
  71,352
  78,349
  85,650
  93,258
  101,175
  109,409
  117,969
  126,864
  136,108
  145,715
  155,700
  166,083
  176,883
  188,122
  199,822
Total liabilities, $m
  7,250
  9,224
  11,530
  14,183
  17,190
  20,557
  24,283
  28,366
  32,801
  37,580
  42,695
  48,139
  53,904
  59,984
  66,373
  73,067
  80,064
  87,365
  94,973
  102,890
  111,124
  119,684
  128,579
  137,823
  147,430
  157,415
  167,798
  178,598
  189,837
  201,537
Total equity, $m
  806
  1,025
  1,281
  1,576
  1,910
  2,284
  2,698
  3,152
  3,645
  4,176
  4,744
  5,349
  5,989
  6,665
  7,375
  8,119
  8,896
  9,707
  10,553
  11,432
  12,347
  13,298
  14,287
  15,314
  16,381
  17,491
  18,644
  19,844
  21,093
  22,393
Total liabilities and equity, $m
  8,056
  10,249
  12,811
  15,759
  19,100
  22,841
  26,981
  31,518
  36,446
  41,756
  47,439
  53,488
  59,893
  66,649
  73,748
  81,186
  88,960
  97,072
  105,526
  114,322
  123,471
  132,982
  142,866
  153,137
  163,811
  174,906
  186,442
  198,442
  210,930
  223,930
Debt-to-equity ratio
  6.870
  7.330
  7.660
  7.910
  8.100
  8.250
  8.360
  8.460
  8.530
  8.590
  8.640
  8.680
  8.710
  8.740
  8.770
  8.790
  8.810
  8.820
  8.840
  8.850
  8.860
  8.870
  8.880
  8.890
  8.900
  8.900
  8.910
  8.910
  8.920
  8.920
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  61
  419
  759
  1,152
  1,598
  2,099
  2,653
  3,261
  3,921
  4,633
  5,394
  6,205
  7,063
  7,967
  8,918
  9,914
  10,955
  12,042
  13,174
  14,352
  15,579
  16,854
  18,180
  19,558
  20,991
  22,482
  24,032
  25,646
  27,327
  29,077
Depreciation, amort., depletion, $m
  751
  956
  1,195
  1,469
  1,781
  2,130
  2,516
  2,939
  3,399
  3,894
  4,424
  4,988
  5,585
  6,215
  6,877
  7,571
  8,296
  9,052
  9,840
  10,661
  11,514
  12,401
  13,322
  14,280
  15,275
  16,310
  17,386
  18,505
  19,669
  20,882
Funds from operations, $m
  813
  1,374
  1,954
  2,621
  3,379
  4,229
  5,169
  6,200
  7,320
  8,526
  9,818
  11,192
  12,648
  14,182
  15,795
  17,484
  19,251
  21,094
  23,014
  25,013
  27,092
  29,254
  31,502
  33,838
  36,266
  38,792
  41,418
  44,151
  46,996
  49,959
Change in working capital, $m
  -60
  -71
  -83
  -95
  -108
  -121
  -134
  -147
  -159
  -172
  -184
  -195
  -207
  -218
  -229
  -240
  -251
  -262
  -273
  -284
  -296
  -307
  -319
  -332
  -345
  -358
  -373
  -388
  -403
  -420
Cash from operations, $m
  872
  1,445
  2,036
  2,716
  3,487
  4,349
  5,303
  6,347
  7,479
  8,698
  10,002
  11,388
  12,855
  14,400
  16,024
  17,725
  19,502
  21,356
  23,287
  25,297
  27,388
  29,562
  31,821
  34,170
  36,611
  39,150
  41,791
  44,539
  47,399
  50,379
Maintenance CAPEX, $m
  -579
  -751
  -956
  -1,195
  -1,469
  -1,781
  -2,130
  -2,516
  -2,939
  -3,399
  -3,894
  -4,424
  -4,988
  -5,585
  -6,215
  -6,877
  -7,571
  -8,296
  -9,052
  -9,840
  -10,661
  -11,514
  -12,401
  -13,322
  -14,280
  -15,275
  -16,310
  -17,386
  -18,505
  -19,669
New CAPEX, $m
  -1,721
  -2,045
  -2,390
  -2,748
  -3,116
  -3,488
  -3,861
  -4,230
  -4,595
  -4,951
  -5,300
  -5,641
  -5,973
  -6,299
  -6,619
  -6,936
  -7,250
  -7,565
  -7,882
  -8,203
  -8,532
  -8,869
  -9,217
  -9,578
  -9,953
  -10,346
  -10,758
  -11,190
  -11,644
  -12,123
Cash from investing activities, $m
  -2,300
  -2,796
  -3,346
  -3,943
  -4,585
  -5,269
  -5,991
  -6,746
  -7,534
  -8,350
  -9,194
  -10,065
  -10,961
  -11,884
  -12,834
  -13,813
  -14,821
  -15,861
  -16,934
  -18,043
  -19,193
  -20,383
  -21,618
  -22,900
  -24,233
  -25,621
  -27,068
  -28,576
  -30,149
  -31,792
Free cash flow, $m
  -1,428
  -1,351
  -1,309
  -1,227
  -1,098
  -920
  -688
  -400
  -55
  348
  808
  1,323
  1,893
  2,516
  3,190
  3,912
  4,681
  5,495
  6,353
  7,254
  8,196
  9,179
  10,204
  11,270
  12,378
  13,528
  14,723
  15,963
  17,250
  18,587
Issuance/(repayment) of debt, $m
  229
  1,974
  2,307
  2,653
  3,008
  3,367
  3,726
  4,083
  4,434
  4,779
  5,115
  5,444
  5,765
  6,080
  6,389
  6,694
  6,998
  7,301
  7,607
  7,917
  8,234
  8,560
  8,895
  9,244
  9,607
  9,986
  10,383
  10,800
  11,239
  11,700
Issuance/(repurchase) of shares, $m
  1,558
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,787
  1,974
  2,307
  2,653
  3,008
  3,367
  3,726
  4,083
  4,434
  4,779
  5,115
  5,444
  5,765
  6,080
  6,389
  6,694
  6,998
  7,301
  7,607
  7,917
  8,234
  8,560
  8,895
  9,244
  9,607
  9,986
  10,383
  10,800
  11,239
  11,700
Total cash flow (excl. dividends), $m
  359
  623
  997
  1,426
  1,909
  2,447
  3,038
  3,683
  4,380
  5,127
  5,923
  6,767
  7,659
  8,596
  9,578
  10,606
  11,678
  12,796
  13,960
  15,171
  16,430
  17,739
  19,099
  20,514
  21,984
  23,514
  25,106
  26,763
  28,489
  30,287
Retained Cash Flow (-), $m
  -1,620
  -219
  -256
  -295
  -334
  -374
  -414
  -454
  -493
  -531
  -568
  -605
  -641
  -676
  -710
  -744
  -778
  -811
  -845
  -880
  -915
  -951
  -988
  -1,027
  -1,067
  -1,110
  -1,154
  -1,200
  -1,249
  -1,300
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -1,261
  404
  741
  1,131
  1,575
  2,073
  2,624
  3,229
  3,887
  4,596
  5,355
  6,163
  7,018
  7,920
  8,868
  9,862
  10,901
  11,985
  13,115
  14,291
  15,515
  16,788
  18,111
  19,487
  20,917
  22,405
  23,952
  25,563
  27,240
  28,987
Discount rate, %
  15.00
  15.75
  16.54
  17.36
  18.23
  19.14
  20.10
  21.11
  22.16
  23.27
  24.43
  25.66
  26.94
  28.28
  29.70
  31.18
  32.74
  34.38
  36.10
  37.90
  39.80
  41.79
  43.88
  46.07
  48.38
  50.80
  53.34
  56.00
  58.80
  61.74
PV of cash for distribution, $m
  -1,096
  301
  468
  596
  682
  725
  728
  698
  641
  567
  484
  398
  316
  242
  179
  128
  88
  59
  38
  23
  14
  8
  4
  2
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

California Resources Corporation is an independent oil and natural gas exploration and production company, with operating properties within the State of California. The Company produced approximately 140 thousand barrels of oil equivalent per day (MBoe/d), as of December 31, 2016. As of December 31, 2016, the Company had net proved reserves of 568 million barrels of oil equivalent (MMBoe). As of December 31, 2016, it drilled 42 development wells with 37 wells in the San Joaquin basin and five in the Los Angeles basin, which included over 30 steamflood and eight waterflood wells. As of December 31, 2016, the Company produced 36 billion barrels of oil equivalent (BBoe), including approximately 20 BBoe in the San Joaquin basin, 11 BBoe in the Los Angeles basin, three BBoe in the Ventura basin and 10 trillion cubic feet (Tcf) of natural gas in the Sacramento basin. Its operations included 135 fields with 8,837 gross active wellbores, as of December 31, 2016.

FINANCIAL RATIOS  of  California Resources (CRC)

Valuation Ratios
P/E Ratio 4.5
Price to Sales 0.7
Price to Book -2.2
Price to Tangible Book
Price to Cash Flow 9.6
Price to Free Cash Flow 22.6
Growth Rates
Sales Growth Rate -22.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -81.3%
Cap. Spend. - 3 Yr. Gr. Rate -46.2%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity -927.8%
Total Debt to Equity -945.8%
Interest Coverage 0
Management Effectiveness
Return On Assets 4.2%
Ret/ On Assets - 3 Yr. Avg. -14.4%
Return On Total Capital 5.6%
Ret/ On T. Cap. - 3 Yr. Avg. -19.9%
Return On Equity -37.9%
Return On Equity - 3 Yr. Avg. -160%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 54.4%
Gross Margin - 3 Yr. Avg. 62.4%
EBITDA Margin 43.4%
EBITDA Margin - 3 Yr. Avg. -61%
Operating Margin 40.2%
Oper. Margin - 3 Yr. Avg. -82.5%
Pre-Tax Margin 11.5%
Pre-Tax Margin - 3 Yr. Avg. -95.9%
Net Profit Margin 15.9%
Net Profit Margin - 3 Yr. Avg. -58.3%
Effective Tax Rate -38.8%
Eff/ Tax Rate - 3 Yr. Avg. 12.4%
Payout Ratio 0%

CRC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CRC stock intrinsic value calculation we used $2006 million for the last fiscal year's total revenue generated by California Resources. The default revenue input number comes from 2017 income statement of California Resources. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CRC stock valuation model: a) initial revenue growth rate of 29.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 15%, whose default value for CRC is calculated based on our internal credit rating of California Resources, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of California Resources.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CRC stock the variable cost ratio is equal to 24%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1515 million in the base year in the intrinsic value calculation for CRC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.5% for California Resources.

Corporate tax rate of 27% is the nominal tax rate for California Resources. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CRC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CRC are equal to 288.7%.

Life of production assets of 10 years is the average useful life of capital assets used in California Resources operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CRC is equal to -10%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-814 million for California Resources - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 43 million for California Resources is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of California Resources at the current share price and the inputted number of shares is $1.3 billion.

RELATED COMPANIES Price Int.Val. Rating
OXY Occidental Pet 78.55 180.20  str.buy

COMPANY NEWS

▶ California Resources: 2Q Earnings Snapshot   [05:04AM  Associated Press]
▶ 4 Top Stocks to Buy for Explosive Earnings Acceleration   [Jul-26-18 01:06PM  InvestorPlace]
▶ 3 Sector ETFs & Stocks to Play April Inflation Data   [May-14-18 12:30PM  InvestorPlace]
▶ California Resources: 1Q Earnings Snapshot   [05:03AM  Associated Press]
▶ Harry Boxers two biotechnology stocks to watch today   [Apr-26-18 11:19AM  MarketWatch]
▶ California offshore oil firms hit with nearly 400 violations   [Apr-11-18 05:21PM  Associated Press]
▶ Why Oil Stocks Are Red-Hot Today   [Apr-10-18 04:10PM  Motley Fool]
▶ Edited Transcript of CRC presentation 8-Mar-17 2:50pm GMT   [11:21AM  Thomson Reuters StreetEvents]
▶ New Strong Sell Stocks for March 20th   [Mar-20-18 09:53AM  Zacks]
▶ California Resources reports 4Q loss   [Feb-26-18 06:23PM  Associated Press]
▶ 3 Stocks That Doubled in Just the Last 6 Months   [Jan-31-18 04:33PM  Motley Fool]
▶ IIROC Trade Resumption - CRC   [Jan-24-18 09:01AM  PR Newswire]
▶ Southwestern Energys Possible Trading Range for the Week   [Jan-23-18 07:35AM  Market Realist]
▶ These Energy Stocks Gained despite Oils Fall Last Week   [Jan-22-18 12:35PM  Market Realist]
▶ These Oil-Weighted Stocks Are Gaining More than US Crude Oil   [Jan-18-18 09:28AM  Market Realist]
▶ Which Oil-Weighted Stocks Are Outdoing Oils Gains?   [Jan-11-18 12:01PM  Market Realist]
▶ IIROC Trading Halt - CRC   [10:13AM  CNW Group]
▶ Energy Stocks Outperformed US Crude Oil Last Week   [Jan-03-18 11:55AM  Market Realist]
▶ Which Oil-Weighted Stocks Could Be a Better Bet Than Oil?   [Dec-28-17 09:25AM  Market Realist]
▶ Are Oil-Weighted Stocks Underperforming Oil?   [10:56AM  Market Realist]
▶ Some Oil-Weighted Stocks Ignored Oils Fall   [Dec-05-17 11:33AM  Market Realist]
▶ This Is the Biggest Challenge in the Stock Market Right Now   [Dec-04-17 05:09PM  TheStreet.com]
▶ This is Not an Easy Market   [01:43PM  TheStreet.com]
▶ Have Oil-Weighted Stocks Missed Oils Rise?   [01:01PM  Market Realist]
▶ Analyzing Oil-Weighted Stocks during Oils Downturn   [Nov-21-17 09:43AM  Market Realist]
▶ Oil Prices: Is Another Tumble in the Forecast?   [Nov-19-17 09:09AM  Motley Fool]
▶ Lower Oil Prices Add to High-Yield Bond Woes   [Nov-15-17 01:10PM  The Wall Street Journal]
▶ Which Oil-Weighted Stocks Can Survive Oils Weakness?   [Nov-14-17 04:15PM  Market Realist]
▶ IIROC Trade Resumption - CRC   [Nov-08-17 05:02PM  CNW Group]
▶ IIROC Trading Halt - CRC   [10:57AM  PR Newswire]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.