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 4 out of 10 in our fundamental rating. POU was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of POU get a neutral evaluation. Nothing too spectacular is happening here. POU is valued correctly, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: POU reported negative net income in multiple years.
POU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.93%, POU belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
The Return On Equity of POU (9.99%) is better than 68.66% of its industry peers.
POU's Return On Invested Capital of 5.42% is fine compared to the rest of the industry. POU outperforms 68.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POU is in line with the industry average of 7.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 9.99% | ||
| ROIC | 5.42% |
ROA(3y)10.83%
ROA(5y)5.87%
ROE(3y)14.22%
ROE(5y)7.47%
ROIC(3y)9.19%
ROIC(5y)N/A
1.3 Margins
POU's Profit Margin of 20.06% is fine compared to the rest of the industry. POU outperforms 75.62% of its industry peers.
POU has a Operating Margin (16.42%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 66.17%, POU is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
POU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.42% | ||
| PM (TTM) | 20.06% | ||
| GM | 66.17% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y25.57%
GM growth 5Y7.21%
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.
Compared to 1 year ago, POU has more shares outstanding
The number of shares outstanding for POU has been increased compared to 5 years ago.
Compared to 1 year ago, POU has an improved debt to assets ratio.
2.2 Solvency
POU has an Altman-Z score of 3.74. 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 3.74, POU belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
POU has a debt to FCF ratio of 5.76. This is a neutral value as POU would need 5.76 years to pay back of all of its debts.
POU's Debt to FCF ratio of 5.76 is fine compared to the rest of the industry. POU outperforms 76.62% of its industry peers.
POU has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of POU (0.02) is better than 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 5.76 | ||
| Altman-Z | 3.74 |
ROIC/WACC0.7
WACC7.72%
2.3 Liquidity
POU has a Current Ratio of 0.62. This is a bad value and indicates that POU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of POU (0.62) is worse than 78.11% of its industry peers.
A Quick Ratio of 0.62 indicates that POU may have some problems paying its short term obligations.
POU has a Quick ratio of 0.62. This is in the lower half of the industry: POU underperforms 60.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
POU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.17%.
The Revenue has decreased by -8.47% in the past year.
The Revenue has been growing by 14.78% on average over the past years. This is quite good.
EPS 1Y (TTM)-42.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%8.47%
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y43.92%
Revenue growth 5Y14.78%
Sales Q2Q%-16.79%
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 -18.01% 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 -20.45% on average per year.
EPS Next Y-29.95%
EPS Next 2Y20.29%
EPS Next 3Y-18.01%
EPS Next 5YN/A
Revenue Next Year-6.51%
Revenue Next 2Y-42.65%
Revenue Next 3Y-20.45%
Revenue Next 5YN/A
3.3 Evolution
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
POU is valuated correctly with a Price/Earnings ratio of 12.86.
POU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of POU to the average of the S&P500 Index (28.35), we can say POU is valued rather cheaply.
A Price/Forward Earnings ratio of 6.24 indicates a rather cheap valuation of POU.
Based on the Price/Forward Earnings ratio, POU is valued a bit cheaper than 79.10% of the companies in the same industry.
POU is valuated cheaply when we compare the Price/Forward Earnings ratio to 95.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POU is valued a bit cheaper than the industry average as 74.13% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as POU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 354.51 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The decent profitability rating of POU may justify a higher PE ratio.
POU's earnings are expected to decrease with -18.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.29%
EPS Next 3Y-18.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.13%, POU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, POU pays a better dividend. On top of this POU pays more dividend than 90.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, POU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
5.2 History
POU has paid a dividend for at least 10 years, which is a reliable track record.
POU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
64.79% of the earnings are spent on dividend by POU. This is not a sustainable payout ratio.
DP64.79%
EPS Next 2Y20.29%
EPS Next 3Y-18.01%
PARAMOUNT RESOURCES LTD -A
TSX:POU (2/5/2025, 7:00:00 PM)
31.11
+1.4 (+4.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners9.13%
Inst Owner ChangeN/A
Ins Owners46.06%
Ins Owner ChangeN/A
Market Cap4.57B
Analysts80
Price Target39.59 (27.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend2.48
Dividend Growth(5Y)N/A
DP64.79%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.23%
Min EPS beat(2)-33.53%
Max EPS beat(2)35.98%
EPS beat(4)1
Avg EPS beat(4)-13.82%
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)5.49%
Min Revenue beat(2)-11.95%
Max Revenue beat(2)22.94%
Revenue beat(4)3
Avg Revenue beat(4)6.92%
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)-0.32%
PT rev (3m)4.12%
EPS NQ rev (1m)14.81%
EPS NQ rev (3m)-14.17%
EPS NY rev (1m)0.59%
EPS NY rev (3m)22.45%
Revenue NQ rev (1m)4.11%
Revenue NQ rev (3m)-8.16%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-11.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 6.24 | ||
| P/S | 2.54 | ||
| P/FCF | 354.51 | ||
| P/OCF | 5 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)2.42
EY7.78%
EPS(NY)4.98
Fwd EY16.02%
FCF(TTM)0.09
FCFY0.28%
OCF(TTM)6.22
OCFY20%
SpS12.22
BVpS24.54
TBVpS24.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 9.99% | ||
| ROCE | 6.91% | ||
| ROIC | 5.42% | ||
| ROICexc | 5.43% | ||
| ROICexgc | 5.43% | ||
| OM | 16.42% | ||
| PM (TTM) | 20.06% | ||
| GM | 66.17% | ||
| FCFM | 0.72% |
ROA(3y)10.83%
ROA(5y)5.87%
ROE(3y)14.22%
ROE(5y)7.47%
ROIC(3y)9.19%
ROIC(5y)N/A
ROICexc(3y)9.22%
ROICexc(5y)N/A
ROICexgc(3y)9.22%
ROICexgc(5y)N/A
ROCE(3y)11.7%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y25.57%
GM growth 5Y7.21%
F-Score3
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 5.76 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 183.31% | ||
| Cap/Sales | 50.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.22% | ||
| Profit Quality | 3.58% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.74 |
F-Score3
WACC7.72%
ROIC/WACC0.7
Cap/Depr(3y)230.75%
Cap/Depr(5y)200.08%
Cap/Sales(3y)35.98%
Cap/Sales(5y)38.94%
Profit Quality(3y)49.62%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%8.47%
EPS Next Y-29.95%
EPS Next 2Y20.29%
EPS Next 3Y-18.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y43.92%
Revenue growth 5Y14.78%
Sales Q2Q%-16.79%
Revenue Next Year-6.51%
Revenue Next 2Y-42.65%
Revenue Next 3Y-20.45%
Revenue Next 5YN/A
EBIT growth 1Y-49.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year88.65%
EBIT Next 3Y-1.13%
EBIT Next 5YN/A
FCF growth 1Y-94.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.12%
OCF growth 3Y126.35%
OCF growth 5Y33.24%