Paramount Resources Ltd (TSE:POU)
TSX:POU
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Paramount Resources
(TSX:POU)
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Rating:65Neutral
Price Target:
C$30.00
▲(12.65% Upside)
Action:Downgraded
Date:05/14/26
The score is anchored by strong financial resilience from an extremely low-leverage balance sheet, but is held back by weaker TTM fundamentals (declining revenue, near break-even operating profitability) and deeply negative recent free cash flow. Technicals add support due to a clear uptrend and positive momentum, while valuation is only fair with a ~20 P/E and a modest ~2% yield.
Positive Factors
Very low leverage / strong balance sheet
Extremely low debt-to-equity (~0.01) gives durable financial flexibility in a cyclical E&P business. This reduces refinancing and interest-rate risk, supports capital allocation through cycles, and preserves optionality for opportunistic investments or downturns without refinancing stress.
Negative Factors
Declining revenue and near-zero operating margin
Revenue contraction (~9.6% TTM) and operating earnings near break-even signal weakening core profitability. If this persists, it erodes internal funding for growth, increases sensitivity to cost inflation, and limits ability to rebuild margins during the next commodity upcycle without structural changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low debt-to-equity (~0.01) gives durable financial flexibility in a cyclical E&P business. This reduces refinancing and interest-rate risk, supports capital allocation through cycles, and preserves optionality for opportunistic investments or downturns without refinancing stress.
Read all positive factors
Paramount Resources (POU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.01B
Dividend Yield2.84%
Average Volume (3M)329.34K
Price to Earnings (P/E)74.5
Beta (1Y)0.58
Revenue Growth-49.03%
EPS Growth-96.56%
CountryCA
Employees566
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.37
Shares Outstanding145,496,110
10 Day Avg. Volume395,196
30 Day Avg. Volume329,343
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.28
Price to Sales (P/S)3.60
P/FCF Ratio-7.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$35.93Price Target Upside34.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.8
Revenue Forecast (FY)C$873.24M
Paramount Resources Business Overview & Revenue Model
Company Description
Paramount Resources Ltd. is an independent energy firm operating in Canada, engaged in the exploration, development, production, and sale of natural gas, crude oil, and natural gas liquids. Its core assets include the Montney and Duvernay formatio...
How the Company Makes Money
Paramount Resources primarily makes money by producing and selling hydrocarbons—natural gas, NGLs (such as propane and butane), and crude oil/condensate—into Canadian and connected North American markets. Revenue is largely driven by (1) realized ...
Paramount Resources Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 902.30M | 965.70M | 2.08B | 1.80B | 2.52B | 1.38B |
| Gross Profit | 181.10M | 162.80M | 991.80M | 960.90M | 1.46B | 841.00M |
| EBITDA | 329.30M | 296.00M | 876.90M | 988.20M | 1.20B | 841.90M |
| Net Income | 53.20M | 1.29B | 335.90M | 470.20M | 680.60M | 236.90M |
Balance Sheet | ||||||
| Total Assets | 3.75B | 3.59B | 4.76B | 4.39B | 4.34B | 3.89B |
| Cash, Cash Equivalents and Short-Term Investments | 671.50M | 730.80M | 2.40M | 48.90M | 2.50M | 1.70M |
| Total Debt | 24.60M | 25.50M | 201.90M | 29.20M | 177.40M | 398.90M |
| Total Liabilities | 992.20M | 875.40M | 1.06B | 889.50M | 959.20M | 1.28B |
| Stockholders Equity | 2.75B | 2.71B | 3.70B | 3.50B | 3.38B | 2.61B |
Cash Flow | ||||||
| Free Cash Flow | -552.80M | -458.80M | -41.20M | 126.90M | 248.80M | 202.10M |
| Operating Cash Flow | 383.60M | 417.30M | 815.30M | 938.20M | 1.05B | 482.10M |
| Investing Cash Flow | -458.70M | 2.91B | -762.40M | -376.70M | -654.00M | -51.70M |
| Financing Cash Flow | -111.90M | -2.60B | -99.40M | -514.90M | -393.20M | -433.30M |
Paramount Resources Technical Analysis
Negative
26.63
Price Trends
29.79
Negative
28.71
Negative
25.89
Positive
Market Momentum
-0.75
Positive
36.19
Neutral
26.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:POU, the sentiment is Negative. The current price of 26.63 is below the 20-day moving average (MA) of 29.34, below the 50-day MA of 29.79, and above the 200-day MA of 25.89, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 26.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:POU.
Paramount Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$4.94B | 23.09 | 12.23% | ― | -4.92% | -52.64% | |
66 Neutral | C$4.20B | -5.91 | -23.11% | 2.07% | -8.89% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | C$4.01B | 74.49 | 1.96% | 2.84% | -49.03% | -96.56% | |
60 Neutral | C$5.96B | -66.06 | -5.03% | 1.91% | -5.38% | -139.64% | |
54 Neutral | C$3.53B | 99.85 | 2.73% | ― | -12.72% | -67.54% |
* Energy Sector Average
TSE:POU
Paramount Resources
27.44
6.14
28.82%
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Paramount Resources Corporate Events
Business Operations and StrategyDividends
Paramount Resources Declares April Cash Dividend of $0.05 per Share
Positive
Apr 1, 2026
Paramount Resources Ltd. has declared a cash dividend of $0.05 per common share, payable on April 30, 2026 to shareholders of record on April 15, 2026. The payout is designated as an eligible dividend for Canadian income tax purposes, underscoring...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.