Paramount Resources Ltd.
Paramount Resources Ltd. Fundamental Analysis
Paramount Resources Ltd. (PRMRF) shows strong financial fundamentals with a PE ratio of 2.68, profit margin of 1.06%, and ROE of 47.07%. The company generates $1.3B in annual revenue with strong year-over-year growth of 15.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PRMRF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPRMRF demonstrates superior asset utilization.
Valuation Score
ExcellentPRMRF trades at attractive valuation levels.
Growth Score
ModeratePRMRF shows steady but slowing expansion.
Financial Health Score
ExcellentPRMRF maintains a strong and stable balance sheet.
Profitability Score
WeakPRMRF struggles to sustain strong margins.
Key Financial Metrics
Is PRMRF Expensive or Cheap?
P/E Ratio
PRMRF trades at 2.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRMRF's PEG of -0.30 indicates potential undervaluation.
Price to Book
The market values Paramount Resources Ltd. at 1.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.00 times EBITDA. This is generally considered low.
How Well Does PRMRF Make Money?
Net Profit Margin
For every $100 in sales, Paramount Resources Ltd. keeps $1.06 as profit after all expenses.
Operating Margin
Core operations generate 11.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $47.07 in profit for every $100 of shareholder equity.
ROA
Paramount Resources Ltd. generates $38.65 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 $420.54M, reflecting robust business health.
Free Cash Flow
Paramount Resources Ltd. generates weak or negative free cash flow of $-364.16M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.54 in free cash annually.
FCF Yield
PRMRF converts -9.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.010
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.47
vs 25 benchmark
ROA
Return on assets percentage
0.39
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PRMRF Stacks Against Its Sector Peers
| Metric | PRMRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.68 | 19.94 | Better (Cheaper) |
| ROE | 47.07% | 987.00% | Weak |
| Net Margin | 106.29% | -42983.00% (disorted) | Strong |
| Debt/Equity | 0.01 | -0.60 (disorted) | Distorted |
| Current Ratio | 3.35 | 4.67 | Strong Liquidity |
| ROA | 38.65% | -11498250.00% (disorted) | Strong |
PRMRF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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
103.07%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
441.91%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
185.15%
Industry Style: Cyclical, Value, Commodity
High Growth