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 5 out of 10 in our fundamental rating. POU was compared to 219 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 cheap, but on the other hand it scores bad on growth. With these ratings, POU could be worth investigating further for value investing!.
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.
POU had positive earnings in 4 of the past 5 years.
POU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of POU (7.06%) is better than 88.13% of its industry peers.
With a decent Return On Equity value of 9.09%, POU is doing good in the industry, outperforming 73.06% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.62%, POU is doing good in the industry, outperforming 74.43% 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 7.60%.
The last Return On Invested Capital (6.62%) for POU is well below the 3 year average (11.45%), which needs to be investigated, but indicates that POU had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 9.09% | ||
| ROIC | 6.62% |
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 Profit Margin of 18.11%. This is in the better half of the industry: POU outperforms 79.45% of its industry peers.
In the last couple of years the Profit Margin of POU has declined.
POU's Operating Margin of 18.44% is fine compared to the rest of the industry. POU outperforms 71.23% of its industry peers.
In the last couple of years the Operating Margin of POU has grown nicely.
POU has a Gross Margin of 67.14%. This is in the better half of the industry: POU outperforms 79.45% of its industry peers.
In the last couple of years the Gross Margin of POU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.44% | ||
| PM (TTM) | 18.11% | ||
| GM | 67.14% |
OM growth 3Y70.43%
OM growth 5YN/A
PM growth 3Y-6.59%
PM growth 5YN/A
GM growth 3Y5.4%
GM growth 5Y10.03%
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.
Compared to 5 years ago, POU has more shares outstanding
POU has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that POU is not a great score, but indicates only limited risk for bankruptcy at the moment.
POU has a better Altman-Z score (2.57) than 78.08% of its industry peers.
POU has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
POU has a better Debt to Equity ratio (0.05) than 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.57 |
ROIC/WACC0.86
WACC7.69%
2.3 Liquidity
POU has a Current Ratio of 3.90. This indicates that POU is financially healthy and has no problem in meeting its short term obligations.
POU's Current ratio of 3.90 is amongst the best of the industry. POU outperforms 90.41% of its industry peers.
A Quick Ratio of 3.90 indicates that POU has no problem at all paying its short term obligations.
The Quick ratio of POU (3.90) is better than 90.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.9 | ||
| Quick Ratio | 3.9 |
3. Growth
3.1 Past
The earnings per share for POU have decreased strongly by -29.17% in the last year.
POU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.15% yearly.
Looking at the last year, POU shows a small growth in Revenue. The Revenue has grown by 3.08% in the last year.
The Revenue has been growing by 18.13% on average over the past years. This is quite good.
EPS 1Y (TTM)-29.17%
EPS 3Y13.15%
EPS 5YN/A
EPS Q2Q%-17.48%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%17.62%
3.2 Future
POU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.32% yearly.
POU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -26.21% yearly.
EPS Next Y117.06%
EPS Next 2Y-8.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-60.67%
Revenue Next 2Y-26.21%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 6.91 indicates a rather cheap valuation of POU.
85.84% 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 29.35, POU is valued rather cheaply.
POU is valuated cheaply with a Price/Forward Earnings ratio of 3.18.
POU's Price/Forward Earnings ratio is rather cheap when compared to the industry. POU is cheaper than 94.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. POU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 3.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POU is valued cheaply inside the industry as 86.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.29 |
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 a very decent profitability rating, which may justify a higher PE ratio.
POU's earnings are expected to decrease with -8.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y-8.32%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, POU has a reasonable but not impressive dividend return.
In the last 3 months the price of POU has falen by -47.63%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.94, POU pays a bit more dividend than its industry peers.
POU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
POU has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of POU decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
POU pays out 73.91% of its income as dividend. This is not a sustainable payout ratio.
DP73.91%
EPS Next 2Y-8.32%
EPS Next 3YN/A
TSX:POU (3/7/2025, 7:00:00 PM)
15.82
+0.27 (+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 Cap2.34B
Analysts78.46
Price Target26.24 (65.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.71
Dividend Growth(5Y)N/A
DP73.91%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.65%
Min EPS beat(2)-30.68%
Max EPS beat(2)35.98%
EPS beat(4)1
Avg EPS beat(4)-14.29%
Min EPS beat(4)-33.53%
Max EPS beat(4)35.98%
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)1.78%
Min Revenue beat(2)-11.95%
Max Revenue beat(2)15.51%
Revenue beat(4)3
Avg Revenue beat(4)8.85%
Min Revenue beat(4)-11.95%
Max Revenue beat(4)22.94%
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)-33.73%
PT rev (3m)-34.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.17%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)151.61%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)12.15%
Revenue NY rev (3m)4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 3.18 | ||
| P/S | 1.26 | ||
| P/FCF | N/A | ||
| P/OCF | 2.87 | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 3.29 |
EPS(TTM)2.29
EY14.48%
EPS(NY)4.97
Fwd EY31.4%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)5.51
OCFY34.85%
SpS12.54
BVpS24.99
TBVpS24.99
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 9.09% | ||
| ROCE | 8.12% | ||
| ROIC | 6.62% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 6.62% | ||
| OM | 18.44% | ||
| PM (TTM) | 18.11% | ||
| GM | 67.14% | ||
| 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 3Y5.4%
GM growth 5Y10.03%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 199.23% | ||
| Cap/Sales | 46.18% | ||
| Interest Coverage | 81.43 | ||
| Cash Conversion | 105.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.9 | ||
| Quick Ratio | 3.9 | ||
| Altman-Z | 2.57 |
F-Score5
WACC7.69%
ROIC/WACC0.86
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)-29.17%
EPS 3Y13.15%
EPS 5YN/A
EPS Q2Q%-17.48%
EPS Next Y117.06%
EPS Next 2Y-8.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.08%
Revenue growth 3Y20.27%
Revenue growth 5Y18.13%
Sales Q2Q%17.62%
Revenue Next Year-60.67%
Revenue Next 2Y-26.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.53%
EBIT growth 3Y104.98%
EBIT growth 5YN/A
EBIT Next Year-62.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-132.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.1%
OCF growth 3Y19.14%
OCF growth 5Y26.1%