Paramount Resources Ltd (TSE:POU)
TSX:POU
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Paramount Resources
(TSX:POU)
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Rating:65Neutral
Price Target:
C$33.00
▲(23.92% 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 balance sheet
Extremely low leverage (debt-to-equity ~0.01) provides durable financial flexibility in a cyclical E&P sector. Low debt reduces refinancing and interest-rate risk, supports funding exploration/development through downturns, and preserves strategic optionality for M&A or capital allocation.
Negative Factors
Declining revenue and weak margins
Declining TTM revenue (-9.6%) and near‑break‑even operating earnings represent a persistent drag on the firm's self-funding ability. Weaker top‑line and slim margins reduce retained earnings, constrain reinvestment capacity, and make long‑term cash generation more sensitive to commodity price or production setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage balance sheet
Extremely low leverage (debt-to-equity ~0.01) provides durable financial flexibility in a cyclical E&P sector. Low debt reduces refinancing and interest-rate risk, supports funding exploration/development through downturns, and preserves strategic optionality for M&A or capital allocation.
Read all positive factors
Paramount Resources (POU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.65B
Dividend Yield2.84%
Average Volume (3M)329.34K
Price to Earnings (P/E)20.2
Beta (1Y)0.60
Revenue Growth-49.03%
EPS Growth-96.56%
CountryCA
Employees566
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.37
Shares Outstanding145,048,610
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)1.73
Revenue Forecast (FY)C$873.24M
Paramount Resources Business Overview & Revenue Model
Company Description
Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Canada. The company's principal properties are the Montney and Duvernay developments located ...
How the Company Makes Money
Paramount Resources primarily makes money by producing and selling crude oil, condensate/NGLs, and natural gas from its operated and non-operated upstream assets. Revenue is generated when produced volumes are delivered into market hubs (via gathe...
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
Positive
26.63
Price Trends
29.12
Positive
26.99
Positive
24.51
Positive
Market Momentum
0.72
Negative
67.27
Neutral
84.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:POU, the sentiment is Positive. The current price of 26.63 is below the 20-day moving average (MA) of 29.69, below the 50-day MA of 29.12, and above the 200-day MA of 24.51, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 67.27 is Neutral, neither overbought nor oversold. The STOCH value of 84.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$5.95B | 29.25 | 12.23% | ― | -4.92% | -52.64% | |
66 Neutral | C$5.25B | -17.26 | -23.11% | 2.07% | -8.89% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | C$4.65B | 20.16 | 1.96% | 2.84% | -49.03% | -96.56% | |
60 Neutral | C$6.44B | 246.51 | -5.03% | 1.91% | -5.38% | -139.64% | |
54 Neutral | C$4.35B | 60.26 | 2.73% | ― | -12.72% | -67.54% |
* Energy Sector Average
TSE:POU
Paramount Resources
33.23
14.54
77.76%
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Baytex Energy
7.32
5.10
229.14%
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12.68
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140.15%
TSE:TVE
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13.42
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210.94%
TSE:IPCO
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39.22
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100.41%
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...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Paramount Resources Posts Strong 2025 Results, Lifts 2026 Outlook After Asset Shift
Positive
Mar 3, 2026
Paramount Resources reported fourth-quarter 2025 sales volumes of 46,973 Boe/d, with 53% liquids, and annual volumes of 42,238 Boe/d that exceeded guidance, supported by strong performance at its wholly owned Alhambra Plant in Willesden Green. The...
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.