Assessing California Resources (CRC) Valuation After Recent Share Price Weakness

California Resources (CRC) has slipped again, with the stock now down about 9% over the past month and over 23% in the past 3 months, despite steady revenue growth.

See our latest analysis for California Resources.

The latest pullback leaves California Resources trading at about $44.64, with short term share price momentum clearly fading. However, the 5 year total shareholder return of 154.14% still points to a solid long term story.

If this volatility has you rethinking your energy exposure, it could be a good time to broaden your search and explore fast growing stocks with high insider ownership.

With CRC now trading at a steep discount to analyst targets but facing shrinking profits, investors are left wondering: is this recent weakness a mispricing to exploit or a sign that the market already sees slower growth ahead?

Most Popular Narrative Narrative: 32% Undervalued

With California Resources closing at $44.64 against a narrative fair value of $65.64, the storyline leans toward meaningful upside if its assumptions hold.

The company's advanced progress and upcoming operational launch of California's first CCS project, alongside legislative support for CO2 pipelines and clean power procurement, positions CRC to capture meaningful new, high margin revenue streams from carbon management services, boosting long term earnings and margins.

Read the complete narrative.

Curious how flat to shrinking earnings, slower revenue, and a sharply higher future earnings multiple can still justify a richer valuation? Unpack the full narrative math.

Result: Fair Value of $65.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent permitting delays or setbacks in early stage CCS projects could stall production growth, compress margins, and challenge expectations for a higher future valuation.

Find out about the key risks to this California Resources narrative.

Build Your Own California Resources Narrative

If you would rather dig into the numbers yourself and challenge this view, you can quickly build and customize your own narrative in minutes: Do it your way.

A great starting point for your California Resources research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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