PARAMOUNT RESOURCES LTD -A (POU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:POU - CA6993202069 - Common Stock
25.43 CAD
+0.01 (+0.04%)
We assign a fundamental rating of 6 out of 10 to POU. POU was compared to 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.
- 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
- Looking at the Return On Assets, with a value of 38.70%, POU belongs to the top of the industry, outperforming 99.51% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 51.27%, POU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of POU (4.09%) is better than 62.62% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for POU 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
- POU has a better Profit Margin (113.39%) than 99.03% of its industry peers.
- In the last couple of years the Profit Margin of POU has declined.
- POU's Operating Margin of 13.63% is fine compared to the rest of the industry. POU outperforms 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
- POU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
- POU has an Altman-Z score of 3.81. This indicates that POU is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.81, POU belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that POU is not too dependend on debt financing.
- The Debt to Equity ratio of POU (0.01) is better than 78.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.81 |
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.
- A Quick Ratio of 3.35 indicates that POU has no problem at all paying its short term obligations.
- The Quick ratio of POU (3.35) is better 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.
- POU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.51% yearly.
- POU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -32.37%.
- 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 -10.27% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -12.10% on average over the next years. This is quite bad
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
- With a Price/Earnings ratio of 2.61, the valuation of POU can be described as very cheap.
- Based on the Price/Earnings ratio, POU is valued cheaper than 98.54% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, POU is valued rather cheaply.
- The Price/Forward Earnings ratio is 29.23, which means the current valuation is very expensive for POU.
- The rest of the industry has a similar Price/Forward Earnings ratio as POU.
- POU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.61 | ||
| Fwd PE | 29.23 |
4.2 Price Multiples
- 84.95% 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 | 6.52 |
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.
- POU has an outstanding profitability rating, which may justify a higher PE ratio.
- POU's earnings are expected to decrease with -10.27% in the coming years. This may justify a cheaper valuation.
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%.
- 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 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-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%.