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Paramount Resources
(TSX:POU)
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Rating:62Neutral
Price Target:
C$32.00
▲(1.27% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily driven by mixed financial performance: strong balance-sheet flexibility offsets volatile profitability and recently negative free cash flow. Technicals add support due to an established uptrend, while valuation is a drag given the high P/E and only modest dividend yield.
Positive Factors
Low Leverage / Strong Balance Sheet
Exceptionally low leverage gives structural financial flexibility across commodity cycles. This allows the company to fund operations, withstand price downturns, pursue selective M&A or strategic investments, and maintain capital allocation optionality without stressing liquidity.
Negative Factors
Material Negative Free Cash Flow
Sustained negative free cash flow indicates capital spending outpacing internal cash generation, raising dependence on external financing or asset sales. Over the medium term this increases execution and funding risk if commodity prices or operating performance weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Exceptionally low leverage gives structural financial flexibility across commodity cycles. This allows the company to fund operations, withstand price downturns, pursue selective M&A or strategic investments, and maintain capital allocation optionality without stressing liquidity.
Read all positive factors
Paramount Resources (POU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.58B
Dividend Yield1.9%
Average Volume (3M)220.18K
Price to Earnings (P/E)39.0
Beta (1Y)0.47
Revenue Growth-28.28%
EPS Growth-92.06%
CountryCA
Employees505
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.81
Shares Outstanding145,998,870
10 Day Avg. Volume245,544
30 Day Avg. Volume220,183
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$36.60Price Target Upside15.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.65
Revenue Forecast (FY)C$1.01B
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
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 965.70M | 2.08B | 1.80B | 2.52B | 1.38B |
| Gross Profit | 236.10M | 162.80M | 991.80M | 960.90M | 1.46B | 841.00M |
| EBITDA | 434.80M | 1.93B | 876.90M | 988.20M | 1.20B | 841.90M |
| Net Income | 117.30M | 1.29B | 335.90M | 470.20M | 680.60M | 236.90M |
Balance Sheet | ||||||
| Total Assets | 3.83B | 3.59B | 4.76B | 4.39B | 4.34B | 3.89B |
| Cash, Cash Equivalents and Short-Term Investments | 515.80M | 730.80M | 2.40M | 48.90M | 2.50M | 1.70M |
| Total Debt | 24.70M | 25.50M | 201.90M | 29.20M | 177.40M | 398.90M |
| Total Liabilities | 1.07B | 875.40M | 1.06B | 889.50M | 959.20M | 1.28B |
| Stockholders Equity | 2.76B | 2.71B | 3.70B | 3.50B | 3.38B | 2.61B |
Cash Flow | ||||||
| Free Cash Flow | -637.50M | -458.80M | -41.20M | 126.90M | 248.80M | 202.10M |
| Operating Cash Flow | 488.20M | 417.30M | 815.30M | 938.20M | 1.05B | 482.10M |
| Investing Cash Flow | -530.50M | 2.91B | -762.40M | -376.70M | -654.00M | -51.70M |
| Financing Cash Flow | -86.30M | -2.60B | -99.40M | -514.90M | -393.20M | -433.30M |
Paramount Resources Technical Analysis
Positive
31.60
Price Trends
29.94
Positive
29.57
Positive
27.44
Positive
Market Momentum
0.39
Positive
54.82
Neutral
39.70
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 31.6 is below the 20-day moving average (MA) of 31.83, above the 50-day MA of 29.94, and above the 200-day MA of 27.44, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 39.70 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$5.26B | 23.32 | 12.57% | ― | -6.76% | -46.80% | |
67 Neutral | C$4.71B | -7.33 | -26.39% | 1.34% | -8.89% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | C$4.58B | 39.04 | 4.30% | 1.90% | -28.28% | -92.06% | |
62 Neutral | C$6.34B | 192.47 | 1.34% | 1.23% | 7.64% | -86.01% | |
52 Neutral | C$3.90B | 137.83 | 2.34% | ― | 4.38% | -57.68% |
* Energy Sector Average
TSE:POU
Paramount Resources
31.65
12.00
61.04%
TSE:BTE
Baytex Energy
6.74
3.71
122.52%
TSE:ATH
Athabasca Oil
11.01
4.83
78.16%
TSE:TVE
Tamarack Valley Energy
13.80
8.41
155.93%
TSE:IPCO
International Petroleum Corporation
36.00
12.02
50.13%
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.