PARAMOUNT RESOURCES LTD -A (POU.CA) Stock Fundamental Analysis
TSX:POU - Toronto Stock Exchange - CA6993202069 - Common Stock - Currency: CAD
Overall POU gets a fundamental rating of 6 out of 10. We evaluated POU against 210 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on POU. This makes POU very considerable 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.
In the past 5 years POU always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 43.04%, POU belongs to the best of the industry, outperforming 99.52% of the companies in the same industry.
POU's Return On Equity of 58.84% is amongst the best of the industry. POU outperforms 99.52% of its industry peers.
POU has a Return On Invested Capital of 7.86%. This is amongst the best in the industry. POU outperforms 84.29% of its industry peers.
POU had an Average Return On Invested Capital over the past 3 years of 11.45%. This is above the industry average of 7.31%.
| 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
Looking at the Profit Margin, with a value of 88.49%, POU belongs to the top of the industry, outperforming 99.05% of the companies in the same industry.
POU's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 17.75%, POU is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of POU has grown nicely.
The Gross Margin of POU (48.12%) is better than 70.95% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so POU is still creating some value.
POU has more shares outstanding than it did 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
POU has an Altman-Z score of 3.50. 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 3.50, POU belongs to the top of the industry, outperforming 82.38% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that POU is not too dependend on debt financing.
POU's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. POU outperforms 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.5 |
ROIC/WACC1.02
WACC7.69%
2.3 Liquidity
A Current Ratio of 2.60 indicates that POU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.60, POU belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
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.
With an excellent Quick ratio value of 2.60, POU belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
POU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 358.09%, 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.
The Revenue has been growing slightly by 2.94% in the past year.
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)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
The Earnings Per Share is expected to grow by 11.80% on average over the next years. This is quite good.
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.
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
The Price/Earnings ratio is 1.97, which indicates a rather cheap valuation of POU.
Based on the Price/Earnings ratio, POU is valued cheaply inside the industry as 99.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.28, POU is valued rather cheaply.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of POU.
61.90% of the companies in the same industry are more expensive than POU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, POU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.97 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
89.05% 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 | 3.36 |
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 an outstanding profitability rating, which 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 2.78%, POU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.19, POU pays a bit more dividend than its industry peers.
POU's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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 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 (7/2/2025, 7:00:00 PM)
21.63
-0.04 (-0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners11.86%
Inst Owner ChangeN/A
Ins Owners48.08%
Ins Owner ChangeN/A
Market Cap3.10B
Analysts77.14
Price Target24.89 (15.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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)-1.52%
PT rev (3m)-4.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-61.07%
EPS NY rev (1m)0%
EPS NY rev (3m)11.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.97 | ||
| Fwd PE | 9.73 | ||
| P/S | 1.76 | ||
| P/FCF | N/A | ||
| P/OCF | 4.06 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 3.36 |
EPS(TTM)10.96
EY50.67%
EPS(NY)2.22
Fwd EY10.28%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)5.32
OCFY24.61%
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 | 3.5 |
F-Score6
WACC7.69%
ROIC/WACC1.02
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%