PARAMOUNT RESOURCES LTD -A (POU.CA) Stock Fundamental Analysis
Canada - TSX:POU - CA6993202069 - Common Stock
22.6 CAD
+0.13 (+0.58%)
We assign a fundamental rating of 6 out of 10 to POU. POU was compared to 216 industry peers in the Oil, Gas & Consumable Fuels industry. While POU belongs to the best of the industry regarding profitability, 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
POU had positive earnings in the past year.
In the past year POU had a positive cash flow from operations.
POU had positive earnings in 4 of the past 5 years.
Each year in the past 5 years POU had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 41.96%, POU belongs to the best of the industry, outperforming 99.54% of the companies in the same industry.
POU has a Return On Equity of 55.11%. This is amongst the best in the industry. POU outperforms 100.00% of its industry peers.
The Return On Invested Capital of POU (5.74%) is better than 73.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POU is above the industry average of 6.96%.
The 3 year average ROIC (11.45%) for POU is well above the current ROIC(5.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.96% | ||
| ROE | 55.11% | ||
| ROIC | 5.74% |
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 has a better Profit Margin (100.95%) than 98.61% of its industry peers.
In the last couple of years the Profit Margin of POU has declined.
Looking at the Operating Margin, with a value of 15.82%, POU is in the better half of the industry, outperforming 61.11% 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 46.97%. This is in the better half of the industry: POU outperforms 72.22% of its industry peers.
POU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.82% | ||
| PM (TTM) | 100.95% | ||
| GM | 46.97% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so POU is still creating some value.
The number of shares outstanding for POU has been increased compared to 1 year ago.
POU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, POU has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.74 indicates that POU is not in any danger for bankruptcy at the moment.
POU's Altman-Z score of 3.74 is amongst the best of the industry. POU outperforms 82.41% of its industry peers.
POU has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of POU (0.01) is better than 78.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.74 |
ROIC/WACC0.73
WACC7.89%
2.3 Liquidity
A Current Ratio of 3.14 indicates that POU has no problem at all paying its short term obligations.
POU has a better Current ratio (3.14) than 85.65% of its industry peers.
POU has a Quick Ratio of 3.14. This indicates that POU is financially healthy and has no problem in meeting its short term obligations.
POU's Quick ratio of 3.14 is amongst the best of the industry. POU outperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.14 | ||
| Quick Ratio | 3.14 |
3. Growth
3.1 Past
POU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 339.66%, which is quite impressive.
POU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.51% yearly.
Looking at the last year, POU shows a very negative growth in Revenue. The Revenue has decreased by -18.29% in the last year.
Measured over the past years, POU shows a quite strong growth in Revenue. The Revenue has been growing by 18.13% on average per year.
EPS 1Y (TTM)339.66%
EPS 3Y12.51%
EPS 5YN/A
EPS Q2Q%-94.74%
Revenue 1Y (TTM)-18.29%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%-75.6%
3.2 Future
Based on estimates for the next years, POU will show a decrease in Earnings Per Share. The EPS will decrease by -6.17% on average per year.
The Revenue is expected to decrease by -12.68% on average over the next years. This is quite bad
EPS Next Y323.53%
EPS Next 2Y-24.2%
EPS Next 3Y-6.17%
EPS Next 5YN/A
Revenue Next Year-57.3%
Revenue Next 2Y-26.3%
Revenue Next 3Y-12.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 2.17, which indicates a rather cheap valuation of POU.
Compared to the rest of the industry, the Price/Earnings ratio of POU indicates a rather cheap valuation: POU is cheaper than 98.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.79, POU is valued rather cheaply.
With a Price/Forward Earnings ratio of 17.48, POU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POU is on the same level as its industry peers.
POU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.17 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
85.65% 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 | 5.2 |
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.
POU's earnings are expected to decrease with -6.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-24.2%
EPS Next 3Y-6.17%
5. Dividend
5.1 Amount
POU has a Yearly Dividend Yield of 2.69%.
Compared to an average industry Dividend Yield of 7.62, POU pays a bit more dividend than its industry peers.
POU's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
POU has paid a dividend for at least 10 years, which is 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
158.35% of the earnings are spent on dividend by POU. This is not a sustainable payout ratio.
DP158.35%
EPS Next 2Y-24.2%
EPS Next 3Y-6.17%
TSX:POU (10/1/2025, 7:00:00 PM)
22.6
+0.13 (+0.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners12.92%
Inst Owner ChangeN/A
Ins Owners48.01%
Ins Owner ChangeN/A
Market Cap3.25B
Analysts74.29
Price Target25.25 (11.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend1.71
Dividend Growth(5Y)N/A
DP158.35%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)976.83%
Min EPS beat(2)-82.63%
Max EPS beat(2)2036.28%
EPS beat(4)2
Avg EPS beat(4)489.87%
Min EPS beat(4)-82.63%
Max EPS beat(4)2036.28%
EPS beat(8)2
Avg EPS beat(8)231.77%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)6.91%
Min Revenue beat(2)-6.49%
Max Revenue beat(2)20.3%
Revenue beat(4)3
Avg Revenue beat(4)12.94%
Min Revenue beat(4)-6.49%
Max Revenue beat(4)30.35%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.81%
PT rev (3m)1.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)65.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.17 | ||
| Fwd PE | 17.48 | ||
| P/S | 2.22 | ||
| P/FCF | N/A | ||
| P/OCF | 5.57 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)10.42
EY46.11%
EPS(NY)1.29
Fwd EY5.72%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)4.06
OCFY17.97%
SpS10.18
BVpS18.65
TBVpS18.65
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.96% | ||
| ROE | 55.11% | ||
| ROCE | 7.04% | ||
| ROIC | 5.74% | ||
| ROICexc | 6.92% | ||
| ROICexgc | 6.92% | ||
| OM | 15.82% | ||
| PM (TTM) | 100.95% | ||
| GM | 46.97% | ||
| FCFM | N/A |
ROA(3y)11.16%
ROA(5y)7.78%
ROE(3y)14.22%
ROE(5y)10.13%
ROIC(3y)11.45%
ROIC(5y)N/A
ROICexc(3y)11.49%
ROICexc(5y)N/A
ROICexgc(3y)11.49%
ROICexgc(5y)N/A
ROCE(3y)14.04%
ROCE(5y)N/A
ROICexcg growth 3Y95.04%
ROICexcg growth 5YN/A
ROICexc growth 3Y95.04%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 267.92% | ||
| Cap/Sales | 53.06% | ||
| Interest Coverage | 47.22 | ||
| Cash Conversion | 111.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.14 | ||
| Quick Ratio | 3.14 | ||
| Altman-Z | 3.74 |
F-Score6
WACC7.89%
ROIC/WACC0.73
Cap/Depr(3y)227.03%
Cap/Depr(5y)217.78%
Cap/Sales(3y)42.62%
Cap/Sales(5y)38.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)339.66%
EPS 3Y12.51%
EPS 5YN/A
EPS Q2Q%-94.74%
EPS Next Y323.53%
EPS Next 2Y-24.2%
EPS Next 3Y-6.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.29%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%-75.6%
Revenue Next Year-57.3%
Revenue Next 2Y-26.3%
Revenue Next 3Y-12.68%
Revenue Next 5YN/A
EBIT growth 1Y-33.79%
EBIT growth 3Y104.98%
EBIT growth 5YN/A
EBIT Next Year23.09%
EBIT Next 3Y-9.91%
EBIT Next 5YN/A
FCF growth 1Y-201.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.64%
OCF growth 3Y19.14%
OCF growth 5Y26.1%