PARAMOUNT RESOURCES LTD -A (POU.CA) Stock Fundamental Analysis
TSX:POU - Toronto Stock Exchange - CA6993202069 - Common Stock - Currency: CAD
Taking everything into account, POU scores 6 out of 10 in our fundamental rating. POU was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While POU has a great profitability rating, there are some minor concerns on its financial health. POU may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make POU suitable for value investing!
1. Profitability
1.1 Basic Checks
POU had positive earnings in the past year.
POU had a positive operating cash flow in the past year.
Of the past 5 years POU 4 years were profitable.
POU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
POU's Return On Assets of 43.04% is amongst the best of the industry. POU outperforms 99.52% of its industry peers.
Looking at the Return On Equity, with a value of 58.84%, POU belongs to the top of the industry, outperforming 99.52% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.86%, POU belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
POU had an Average Return On Invested Capital over the past 3 years of 11.45%. This is above the industry average of 7.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 43.04% | ||
| ROE | 58.84% | ||
| ROIC | 7.86% |
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
The Profit Margin of POU (88.49%) is better than 99.04% of its industry peers.
POU's Profit Margin has declined in the last couple of years.
POU has a better Operating Margin (17.75%) than 70.81% of its industry peers.
POU's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 48.12%, POU is doing good in the industry, outperforming 72.25% of the companies in the same industry.
POU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.75% | ||
| PM (TTM) | 88.49% | ||
| GM | 48.12% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), POU is creating some value.
POU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, POU has more shares outstanding
POU has a worse debt/assets ratio than last year.
2.2 Solvency
POU has an Altman-Z score of 3.32. This indicates that POU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.32, POU belongs to the top of the industry, outperforming 81.82% 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 has a better Debt to Equity ratio (0.01) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.32 |
ROIC/WACC1
WACC7.83%
2.3 Liquidity
POU has a Current Ratio of 2.60. This indicates that POU is financially healthy and has no problem in meeting its short term obligations.
POU's Current ratio of 2.60 is amongst the best of the industry. POU outperforms 82.78% of its industry peers.
POU has a Quick Ratio of 2.60. This indicates that POU is financially healthy and has no problem in meeting its short term obligations.
POU has a Quick ratio of 2.60. This is amongst the best in the industry. POU outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 358.09% over the past year.
The Earnings Per Share has been growing by 12.51% on average over the past years. This is quite good.
POU shows a small growth in Revenue. In the last year, the Revenue has grown by 2.94%.
POU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.13% yearly.
EPS 1Y (TTM)358.09%
EPS 3Y12.51%
EPS 5YN/A
EPS Q2Q%1893.48%
Revenue 1Y (TTM)2.94%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%-38.57%
3.2 Future
Based on estimates for the next years, POU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.80% on average per year.
Based on estimates for the next years, POU will show a very negative growth in Revenue. The Revenue will decrease by -10.55% on average per year.
EPS Next Y155.33%
EPS Next 2Y-0.58%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue Next Year-56.69%
Revenue Next 2Y-23.2%
Revenue Next 3Y-10.55%
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 stable.
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
With a Price/Earnings ratio of 1.82, the valuation of POU can be described as very cheap.
99.04% of the companies in the same industry are more expensive than POU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.52, POU is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of POU can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POU indicates a somewhat cheap valuation: POU is cheaper than 65.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of POU to the average of the S&P500 Index (22.25), we can say POU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.82 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
POU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. POU is cheaper than 89.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.93 |
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.
The excellent profitability rating of POU may justify a higher PE ratio.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-0.58%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, POU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.70, POU pays a bit more dividend than its industry peers.
POU's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
152.84% of the earnings are spent on dividend by POU. This is not a sustainable payout ratio.
DP152.84%
EPS Next 2Y-0.58%
EPS Next 3Y11.8%
TSX:POU (6/6/2025, 7:00:00 PM)
19.93
+0.34 (+1.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners8.68%
Inst Owner ChangeN/A
Ins Owners46.24%
Ins Owner ChangeN/A
Market Cap2.86B
Analysts77.14
Price Target24.89 (24.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.71
Dividend Growth(5Y)N/A
DP152.84%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1003.07%
Min EPS beat(2)-30.14%
Max EPS beat(2)2036.28%
EPS beat(4)2
Avg EPS beat(4)502.15%
Min EPS beat(4)-33.53%
Max EPS beat(4)2036.28%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)11.93%
Min Revenue beat(2)-6.49%
Max Revenue beat(2)30.35%
Revenue beat(4)3
Avg Revenue beat(4)13.6%
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)-0.89%
PT rev (3m)-33.13%
EPS NQ rev (1m)-75.12%
EPS NQ rev (3m)-61.36%
EPS NY rev (1m)0%
EPS NY rev (3m)15.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)11.82%
Revenue NY rev (3m)17.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.82 | ||
| Fwd PE | 8.96 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | 3.74 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 2.93 |
EPS(TTM)10.96
EY54.99%
EPS(NY)2.22
Fwd EY11.16%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)5.32
OCFY26.71%
SpS12.26
BVpS18.44
TBVpS18.44
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 43.04% | ||
| ROE | 58.84% | ||
| ROCE | 9.64% | ||
| ROIC | 7.86% | ||
| ROICexc | 10.63% | ||
| ROICexgc | 10.63% | ||
| OM | 17.75% | ||
| PM (TTM) | 88.49% | ||
| GM | 48.12% | ||
| 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 233.88% | ||
| Cap/Sales | 48.94% | ||
| Interest Coverage | 65.06 | ||
| Cash Conversion | 112.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 3.32 |
F-Score6
WACC7.83%
ROIC/WACC1
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)358.09%
EPS 3Y12.51%
EPS 5YN/A
EPS Q2Q%1893.48%
EPS Next Y155.33%
EPS Next 2Y-0.58%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue 1Y (TTM)2.94%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%-38.57%
Revenue Next Year-56.69%
Revenue Next 2Y-23.2%
Revenue Next 3Y-10.55%
Revenue Next 5YN/A
EBIT growth 1Y-15.5%
EBIT growth 3Y104.98%
EBIT growth 5YN/A
EBIT Next Year-64.95%
EBIT Next 3Y-8.76%
EBIT Next 5YN/A
FCF growth 1Y-134.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.35%
OCF growth 3Y19.14%
OCF growth 5Y26.1%