Paramount Resources (POU) AI Stock Analysis

• Market Cap: C$2.95B
• Dividend Yield: 4.87%
• Average Volume (3M): 271.73K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 1.05
• Revenue Growth: -18.29%
• EPS Growth: 317.52%
• Country: CA
• Employees: 566
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.03
• Shares Outstanding: 143,595,600
• 10 Day Avg. Volume: 277,687
• 30 Day Avg. Volume: 271,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$24.25
• Price Target Upside: 18.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: C$22.50 ▲(9.60% Upside)

Paramount Resources' strong valuation, with a low P/E ratio and high dividend yield, is a significant positive factor. However, concerns about declining revenue and negative free cash flow weigh on the overall score. The technical analysis suggests a neutral market sentiment, which does not significantly impact the score.

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 in Alberta and British Columbia. It also invests in public and private corporations. Paramount Resources Ltd. was founded in 1976 and is based in Calgary, Canada.

How the Company Makes Money

Paramount Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company monetizes its production by selling these resources to various customers, including refiners, marketers, and other energy companies. Key revenue streams include the sale of production from its operated and non-operated properties, as well as income from its midstream operations, which may involve transportation and processing fees. Additionally, Paramount may engage in strategic partnerships and joint ventures to enhance its production capabilities or share costs, thereby contributing to its overall earnings. The pricing of its products is influenced by global commodity markets, making fluctuations in oil and gas prices a significant factor in its revenue streams.

Paramount Resources Financial Statement Overview

Summary

Paramount Resources demonstrates strong profitability with a high net profit margin and low leverage. However, declining revenue and negative free cash flow are significant concerns that need addressing to maintain financial health.

Income Statement

Paramount Resources shows a strong net profit margin of 95.66% in the TTM, indicating high profitability. However, the revenue has declined by 15.87% compared to the previous period, which is a concern. The EBIT and EBITDA margins are exceptionally high, suggesting efficient operations, but the declining revenue growth rate could pose future challenges.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and strong financial stability. Return on equity is robust at 46.77%, showcasing effective use of equity to generate profits. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

Operating cash flow is strong with a coverage ratio of 2.52, but the free cash flow is negative, which is a concern. The free cash flow to net income ratio is negative, indicating potential issues in converting income into free cash flow. Despite this, the operating cash flow to net income ratio is healthy, suggesting good operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	2.08B	1.80B	2.52B	1.38B	626.04M
Gross Profit	600.50M	991.80M	960.90M	1.46B	841.00M	239.51M
EBITDA	2.19B	876.90M	1.05B	1.20B	841.90M	338.47M
Net Income	1.48B	335.90M	470.20M	680.60M	236.90M	-22.69M
Balance Sheet
Total Assets	3.52B	4.76B	4.39B	4.34B	3.89B	3.50B
Cash, Cash Equivalents and Short-Term Investments	561.80M	2.40M	48.90M	2.50M	1.70M	4.59M
Total Debt	27.50M	201.90M	29.20M	177.40M	398.90M	835.21M
Total Liabilities	839.40M	1.06B	889.50M	959.20M	1.28B	1.46B
Stockholders Equity	2.68B	3.70B	3.50B	3.38B	2.61B	2.04B
Cash Flow
Free Cash Flow	-192.80M	-41.20M	126.90M	248.80M	202.10M	-140.34M
Operating Cash Flow	583.00M	815.30M	938.20M	1.05B	482.10M	80.91M
Investing Cash Flow	2.49B	-762.40M	-376.70M	-654.00M	-51.70M	-250.02M
Financing Cash Flow	-2.55B	-99.40M	-514.90M	-393.20M	-433.30M	168.37M

Paramount Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 20.53 is above the 20-day moving average (MA) of 20.24, below the 50-day MA of 20.75, and above the 200-day MA of 18.04, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 50.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:POU.

Paramount Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POU	69 Neutral	C$2.95B	2.02	44.56%	4.87%	-18.29%	317.52%
Sector *	65 Neutral	$15.18B	7.59	4.09%	5.21%	3.87%	-62.32%
BTE	―	$1.83B	6.99	9.05%	2.71%	―	―
ATHOF	―	$2.27B	7.28	27.01%	―	―	―
FRHLF	―	$1.58B	17.67	11.89%	8.00%	―	―
NUVSF	―	$2.15B	8.87	14.64%	―	―	―
IPCO	67 Neutral	C$2.71B	38.70	5.46%	―	-17.88%	-67.55%

Paramount Resources Corporate Events

Paramount Resources Declares September Dividend

Paramount Resources Ltd. has announced a cash dividend of $0.05 per common share, payable on September 29, 2025, to shareholders of record on September 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders, although future dividends are subject to change based on various financial and market conditions.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$20.50 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.

Paramount Resources Boosts 2025 Production Guidance with Early Alhambra Plant Start-Up

Paramount Resources Ltd. reported its second quarter 2025 results, highlighting the early start-up of its Alhambra Plant in Willesden Green, which has led to an increase in production guidance for the year. The company’s sales volumes averaged 31,631 Boe/d, with significant contributions from the Duvernay formation. The early completion of the Alhambra Plant is expected to enhance production capacity, with annual sales volumes now projected to be between 38,500 and 42,500 Boe/d. Paramount maintains a strong financial position with net cash of $501 million and an undrawn credit facility, while also declaring a dividend for shareholders.

The most recent analyst rating on (TSE:POU) stock is a Hold with a C$34.00 price target. To see the full list of analyst forecasts on Paramount Resources stock, see the TSE:POU Stock Forecast page.