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California ResourcesFRA:1CLD +1.27%68 ROE % is 65.17% as of Jun. 2026, which is 136% above its 10-year median of 27.63. GuruFocus rates FRA:1CLD with a GF Score™ of 68/100 and a GF Value™ of €49.71 (Fairly Valued). The stock has 4 warning signs investors should review. Among 967 Oil & Gas companies, California Resources ranks worse than 72.08% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, California Resources's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
California Resources ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, California Resources's ROE % distribution charts can be found below:
* The bar in red indicates where California Resources's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
California Resources (FRA:1CLD) has a ROE % of 65.17% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on California Resources and its competitors. This is 136% above median its historical median of 27.63. According to the industry distribution chart, California Resources ranks #697 out of 967 companies in the Oil & Gas industry, placing it in the top 72.1%.
Is California Resources' ROE % too high?
California Resources' current ROE % of 65.17% is 136% above median its 10-year median of 27.63. The Oil & Gas industry median ROE % is 6.64. California Resources' value of 65.17% is 881.5% above this industry median. Based on the distribution chart, California Resources ranks #697 out of 967 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, California Resources has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does California Resources' ROE % compare to CNX and CRK?
According to the Oil & Gas industry distribution chart, California Resources ranks #697 out of 967 companies for ROE %. This places California Resources in the lower half of its industry. The industry median ROE % is 6.64. California Resources' value of 65.17% is 881.5% above this benchmark. While the company's 10-year median is 27.63 vs. the industry median of 6.64, California Resources has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 6.64, based on 967 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. California Resources's current ROE % of 65.17% is 881.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on California Resources and its competitors. For the Oil & Gas industry, the median ROE % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. California Resources's current ROE % is 65.17%, which is 136% above median its own 10-year median of 27.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is California Resources stock overvalued right now?
Based on GuruFocus' analysis, California Resources (FRA:1CLD) is currently considered Fairly Valued. The stock's GF Value™ is €49.71, compared to a current price of €46.08 — trading 7.3% below its estimated fair value. The current ROE % is 65.17%, which is 136% above median its 10-year median of 27.63 and 881.5% above the Oil & Gas industry median of 6.64. California Resources' overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For California Resources (FRA:1CLD), the current ROE % is 65.17% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is California Resources (FRA:1CLD) Overvalued in 2026?
Based on GuruFocus' analysis, California Resources stock appears to be undervalued.
The current stock price of €46.08 is trading 7.3% below its estimated GF Value™ of €49.71.
GuruFocus considers California Resources to be Fairly Valued.
Key valuation signals for FRA:1CLD:
ROE %: 65.17% (136% above median its 10-year median of 27.63)
GF Value™: €49.71 vs. price of €46.08 (7.3% below fair value)
Industry Position: 881.5% above the Oil & Gas median (#697 of 967)
No single metric tells the full story. See the FRA:1CLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
California Resources Corp is an independent oil and natural gas exploration and production company. The company has operations spread across different properties in several oil and gas exploration basins in California and Utah, such as the Midway-Sunset, South Belridge, and McKittrick fields, in the San Joaquin Basin, and other properties located in Los Angeles, Sacramento, Uinta, and the Ventura and Salinas basins. Additionally, the company is focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions-reducing projects. Its business is organized into two reporting segments: oil and natural gas, which generate maximum revenue, and carbon management.
68GF Score
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