Paramount Resources Ltd.
Paramount Resources Ltd. Fundamental Analysis
Paramount Resources Ltd. (POU.TO) shows weak financial fundamentals with a PE ratio of 87.02, profit margin of 5.90%, and ROE of 1.96%. The company generates $0.9B in annual revenue with weak year-over-year growth of -53.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -23.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze POU.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakPOU.TO struggles to generate sufficient returns from assets.
Valuation Score
ModeratePOU.TO shows balanced valuation metrics.
Growth Score
WeakPOU.TO faces weak or negative growth trends.
Financial Health Score
ExcellentPOU.TO maintains a strong and stable balance sheet.
Profitability Score
WeakPOU.TO struggles to sustain strong margins.
Key Financial Metrics
Is POU.TO Expensive or Cheap?
P/E Ratio
POU.TO trades at 87.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, POU.TO's PEG of -0.90 indicates potential undervaluation.
Price to Book
The market values Paramount Resources Ltd. at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.09 times EBITDA. This signals the market has high growth expectations.
How Well Does POU.TO Make Money?
Net Profit Margin
For every $100 in sales, Paramount Resources Ltd. keeps $5.90 as profit after all expenses.
Operating Margin
Core operations generate 0.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.96 in profit for every $100 of shareholder equity.
ROA
Paramount Resources Ltd. generates $1.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Paramount Resources Ltd. generates strong operating cash flow of $385.32M, reflecting robust business health.
Free Cash Flow
Paramount Resources Ltd. generates weak or negative free cash flow of $-555.28M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.83 in free cash annually.
FCF Yield
POU.TO converts -11.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
87.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.001
vs 25 benchmark
How POU.TO Stacks Against Its Sector Peers
| Metric | POU.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 87.02 | 21.39 | Worse (Expensive) |
| ROE | 1.96% | 922.00% | Weak |
| Net Margin | 5.90% | -57637.00% (disorted) | Weak |
| Debt/Equity | 0.01 | -0.49 (disorted) | Distorted |
| Current Ratio | 2.57 | 5.04 | Strong Liquidity |
| ROA | 1.42% | -1987.00% (disorted) | Weak |
POU.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Paramount Resources Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.04%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
5366.04%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
378.27%
Industry Style: Cyclical, Value, Commodity
High Growth