PARAMOUNT RESOURCES LTD -A (POU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:POU - CA6993202069 - Common Stock
24.79 CAD
-0.08 (-0.32%)
Overall POU gets a fundamental rating of 6 out of 10. We evaluated POU against 206 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 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.
- POU had a positive operating cash flow in the past year.
- 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
- POU's Return On Assets of 38.70% is amongst the best of the industry. POU outperforms 99.51% of its industry peers.
- The Return On Equity of POU (51.27%) is better than 100.00% of its industry peers.
- With a decent Return On Invested Capital value of 4.09%, POU is doing good in the industry, outperforming 62.62% 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 6.62%.
- 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
- With an excellent Profit Margin value of 113.39%, POU belongs to the best of the industry, outperforming 99.03% of the companies in the same industry.
- POU's Profit Margin has declined in the last couple of years.
- The Operating Margin of POU (13.63%) is better than 61.65% of its industry peers.
- POU's Operating Margin has improved in the last couple of years.
- POU has a better Gross Margin (46.69%) than 74.27% of its industry peers.
- POU's Gross Margin has improved in the last couple of years.
| 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
- 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.
- The number of shares outstanding for POU has been increased compared to 5 years ago.
- Compared to 1 year ago, POU has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.76 indicates that POU is not in any danger for bankruptcy at the moment.
- POU's Altman-Z score of 3.76 is amongst the best of the industry. POU outperforms 80.10% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that POU is not too dependend on debt financing.
- POU has a Debt to Equity ratio of 0.01. This is in the better half of the industry: POU outperforms 78.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.76 |
ROIC/WACC0.52
WACC7.87%
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 Current ratio of 3.35. This is amongst the best in the industry. POU outperforms 85.44% 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.
- POU has a better Quick ratio (3.35) than 85.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 3.35 |
3. Growth
3.1 Past
- POU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 303.31%, which is quite impressive.
- Measured over the past years, POU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.51% on average per year.
- POU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -32.37%.
- 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)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
- Based on estimates for the next years, POU will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.27% on average per year.
- POU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.10% yearly.
EPS Next Y326.89%
EPS Next 2Y-37.82%
EPS Next 3Y-10.27%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 2.54 indicates a rather cheap valuation of POU.
- 98.54% 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 27.25, POU is valued rather cheaply.
- The Price/Forward Earnings ratio is 28.50, which means the current valuation is very expensive for POU.
- POU's Price/Forward Earnings is on the same level as the industry average.
- POU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.54 | ||
| Fwd PE | 28.5 |
4.2 Price Multiples
- POU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. POU is cheaper than 85.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
- POU's 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.
- A cheap valuation may be justified as POU's earnings are expected to decrease with -10.27% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-37.82%
EPS Next 3Y-10.27%
5. Dividend
5.1 Amount
- POU has a Yearly Dividend Yield of 2.50%. 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 3.29.
- Compared to an average S&P500 Dividend Yield of 1.82, POU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
- POU pays out 166.39% of its income as dividend. This is not a sustainable payout ratio.
DP166.39%
EPS Next 2Y-37.82%
EPS Next 3Y-10.27%
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 326.89% 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%.