

California Resources vs Peabody Energy
California Resources Corp and Peabody Energy Corporation are compared on this page to outline their business models, financial performance, and market context in a clear, neutral way. The content emphasises how each company operates, generates revenue, and positions itself within the industry, without speculation. Educational content, not financial advice.
California Resources Corp and Peabody Energy Corporation are compared on this page to outline their business models, financial performance, and market context in a clear, neutral way. The content emph...
Which Baskets Do They Appear In?
The North Ablaze: Investing In Wildfire Resilience
This carefully selected group of stocks offers exposure to companies tackling Canada's unprecedented wildfire crisis. Our professional analysts have identified businesses positioned to benefit from increased spending on wildfire suppression, air quality solutions, and carbon monitoring technologies.
Published: July 21, 2025
Explore BasketPhoenixes
These remarkable companies have risen from the ashes of bankruptcy or severe financial distress. Our analysts have carefully selected businesses that emerged stronger, leaner, and ready for their second act of growth after successful restructuring.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
The North Ablaze: Investing In Wildfire Resilience
This carefully selected group of stocks offers exposure to companies tackling Canada's unprecedented wildfire crisis. Our professional analysts have identified businesses positioned to benefit from increased spending on wildfire suppression, air quality solutions, and carbon monitoring technologies.
Published: July 21, 2025
Explore BasketPhoenixes
These remarkable companies have risen from the ashes of bankruptcy or severe financial distress. Our analysts have carefully selected businesses that emerged stronger, leaner, and ready for their second act of growth after successful restructuring.
Published: June 17, 2025
Explore BasketInvestment Analysis
Pros
- California Resources has a strong profitability profile with a trailing price-to-earnings ratio below industry average, indicating relatively attractive valuation.
- The company is expanding into carbon management and carbon capture projects, positioning itself for growth in decarbonisation markets.
- Recent analyst consensus is overwhelmingly positive, with multiple firms raising price targets and maintaining strong buy ratings.
Considerations
- California Resources is highly exposed to commodity price volatility, particularly in oil and natural gas, which can impact earnings stability.
- Its operations are concentrated in California, increasing regulatory and environmental risks compared to more geographically diversified peers.
- The company's beta is above 1.5, suggesting higher stock price volatility and sensitivity to broader market movements.
Pros
- Peabody Energy is a global leader in coal production, benefiting from strong demand in both thermal and metallurgical coal markets.
- The company maintains a diversified portfolio of mining assets across multiple regions, reducing operational concentration risk.
- Peabody has demonstrated robust cash flow generation, supporting debt reduction and shareholder returns in recent periods.
Considerations
- Peabody's business is heavily reliant on coal, a sector facing long-term structural decline due to environmental regulations and energy transition trends.
- The company is exposed to significant regulatory and climate policy risks, which could impact future operations and profitability.
- Coal price volatility and global supply-demand imbalances can lead to unpredictable earnings and cash flow performance.
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