PARAMOUNT RESOURCES LTD -A (POU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:POU - CA6993202069 - Common Stock
23.98 CAD
-0.09 (-0.37%)
Taking everything into account, POU scores 6 out of 10 in our fundamental rating. POU was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. POU has an excellent profitability rating, but there are some minor concerns on its financial health. POU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year POU was profitable.
- In the past year POU had a positive cash flow from operations.
- Of the past 5 years POU 4 years were profitable.
- In the past 5 years POU always reported a positive cash flow from operatings.
1.2 Ratios
- POU's Return On Assets of 38.70% is amongst the best of the industry. POU outperforms 99.53% of its industry peers.
- POU's Return On Equity of 51.27% is amongst the best of the industry. POU outperforms 100.00% of its industry peers.
- POU's Return On Invested Capital of 4.09% is fine compared to the rest of the industry. POU outperforms 63.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for POU is above the industry average of 6.53%.
- The 3 year average ROIC (11.45%) for POU is well above the current ROIC(4.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 38.7% | ||
| ROE | 51.27% | ||
| ROIC | 4.09% |
ROA(3y)11.16%
ROA(5y)7.78%
ROE(3y)14.22%
ROE(5y)10.13%
ROIC(3y)11.45%
ROIC(5y)N/A
1.3 Margins
- POU's Profit Margin of 113.39% is amongst the best of the industry. POU outperforms 99.07% of its industry peers.
- POU's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 13.63%, POU is in the better half of the industry, outperforming 61.68% of the companies in the same industry.
- In the last couple of years the Operating Margin of POU has grown nicely.
- POU has a Gross Margin of 46.69%. This is in the better half of the industry: POU outperforms 74.30% of its industry peers.
- In the last couple of years the Gross Margin of POU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.63% | ||
| PM (TTM) | 113.39% | ||
| GM | 46.69% |
OM growth 3Y70.43%
OM growth 5YN/A
PM growth 3Y-6.59%
PM growth 5YN/A
GM growth 3Y-4.26%
GM growth 5Y3.86%
2. Health
2.1 Basic Checks
- POU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- POU has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for POU has been increased compared to 5 years ago.
- The debt/assets ratio for POU is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.67 indicates that POU is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.67, POU belongs to the top of the industry, outperforming 80.37% of the companies in the same industry.
- POU has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- POU's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. POU outperforms 79.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.67 |
ROIC/WACC0.52
WACC7.86%
2.3 Liquidity
- A Current Ratio of 3.35 indicates that POU has no problem at all paying its short term obligations.
- POU has a better Current ratio (3.35) than 85.51% of its industry peers.
- POU has a Quick Ratio of 3.35. This indicates that POU is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 3.35, POU belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 3.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 303.31% over the past year.
- The Earnings Per Share has been growing by 12.51% on average over the past years. This is quite good.
- The Revenue for POU has decreased by -32.37% in the past year. This is quite bad
- The Revenue has been growing by 18.13% on average over the past years. This is quite good.
EPS 1Y (TTM)303.31%
EPS 3Y12.51%
EPS 5YN/A
EPS Q2Q%-103.12%
Revenue 1Y (TTM)-32.37%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%-56.37%
3.2 Future
- The Earnings Per Share is expected to decrease by -4.19% on average over the next years.
- Based on estimates for the next years, POU will show a very negative growth in Revenue. The Revenue will decrease by -12.10% on average per year.
EPS Next Y321.55%
EPS Next 2Y-26.91%
EPS Next 3Y-4.19%
EPS Next 5YN/A
Revenue Next Year-57.88%
Revenue Next 2Y-33.47%
Revenue Next 3Y-12.1%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- POU is valuated cheaply with a Price/Earnings ratio of 2.46.
- Based on the Price/Earnings ratio, POU is valued cheaply inside the industry as 98.60% of the companies are valued more expensively.
- POU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 19.95 indicates a rather expensive valuation of POU.
- POU's Price/Forward Earnings is on the same level as the industry average.
- POU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.46 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
- 86.92% of the companies in the same industry are more expensive than POU, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.01 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- POU has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as POU's earnings are expected to decrease with -4.19% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-26.91%
EPS Next 3Y-4.19%
5. Dividend
5.1 Amount
- POU has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
- POU's Dividend Yield is a higher than the industry average which is at 2.82.
- POU's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
- POU has been paying a dividend for at least 10 years, so it has a reliable track record.
- POU has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- POU pays out 166.39% of its income as dividend. This is not a sustainable payout ratio.
DP166.39%
EPS Next 2Y-26.91%
EPS Next 3Y-4.19%
PARAMOUNT RESOURCES LTD -A / POU.CA FAQ
What is the ChartMill fundamental rating of PARAMOUNT RESOURCES LTD -A (POU.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to POU.CA.
What is the valuation status for POU stock?
ChartMill assigns a valuation rating of 6 / 10 to PARAMOUNT RESOURCES LTD -A (POU.CA). This can be considered as Fairly Valued.
How profitable is PARAMOUNT RESOURCES LTD -A (POU.CA) stock?
PARAMOUNT RESOURCES LTD -A (POU.CA) has a profitability rating of 8 / 10.
What is the expected EPS growth for PARAMOUNT RESOURCES LTD -A (POU.CA) stock?
The Earnings per Share (EPS) of PARAMOUNT RESOURCES LTD -A (POU.CA) is expected to grow by 321.55% in the next year.
Is the dividend of PARAMOUNT RESOURCES LTD -A sustainable?
The dividend rating of PARAMOUNT RESOURCES LTD -A (POU.CA) is 3 / 10 and the dividend payout ratio is 166.39%.