ScoreWhy is Paramount Resources Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.20
2
Healthy long term growth as Net Sales has grown by an annual rate of 5.21% and Operating profit at 15.12%
3
Flat results in Jun 26
- NET PROFIT(HY) At CAD 124.23 MM has Grown at -90.25%
- OPERATING CASH FLOW(Y) Lowest at CAD 488.2 MM
- ROCE(HY) Lowest at 4.32%
4
With ROE of 0.99%, it has a expensive valuation with a 1.50 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 56.13%, its profits have fallen by -98.2%
5
Majority shareholders : FIIs
6
Market Beating Performance
- The stock has generated a return of 56.13% in the last 1 year, much higher than market (S&P/TSX 60) returns of 30.16%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Paramount Resources Ltd. should be less than 10%
- Overall Portfolio exposure to Oil should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Paramount Resources Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Paramount Resources Ltd.
42.11%
-0.10
32.63%
S&P/TSX 60
20.36%
2.51
12.02%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.21%
EBIT Growth (5y)
15.12%
EBIT to Interest (avg)
50.16
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.32
Sales to Capital Employed (avg)
0.47
Tax Ratio
21.12%
Dividend Payout Ratio
7.81%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
14.09%
ROE (avg)
21.15%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
151
Industry P/E
Price to Book Value
1.50
EV to EBIT
958.57
EV to EBITDA
11.24
EV to Capital Employed
1.65
EV to Sales
3.85
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.17%
ROE (Latest)
0.99%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 10,700
NET SALES(Q)
Highest at CAD 317.3 MM
OPERATING PROFIT(Q)
Highest at CAD 171.2 MM
RAW MATERIAL COST(Y)
Fallen by -1,760.21% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 53.96 %
PRE-TAX PROFIT(Q)
Highest at CAD 83.7 MM
NET PROFIT(Q)
Highest at CAD 67.81 MM
EPS(Q)
Highest at CAD 0.46
-16What is not working for the Company
NET PROFIT(HY)
At CAD 124.23 MM has Grown at -90.25%
OPERATING CASH FLOW(Y)
Lowest at CAD 488.2 MM
ROCE(HY)
Lowest at 4.32%
INTEREST(Q)
Highest at CAD 1.6 MM
Here's what is working for Paramount Resources Ltd.
Interest Coverage Ratio
Highest at 10,700 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At CAD 83.7 MM has Grown at 712.62%
over average net sales of the previous four periods of CAD 10.3 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CAD MM)
Net Profit
At CAD 67.81 MM has Grown at 893.86%
over average net sales of the previous four periods of CAD 6.82 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CAD MM)
Net Sales
Highest at CAD 317.3 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CAD MM)
Operating Profit
Highest at CAD 171.2 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (CAD MM)
Net Sales
At CAD 317.3 MM has Grown at 41.56%
over average net sales of the previous four periods of CAD 224.15 MMMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Operating Profit Margin
Highest at 53.96 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 83.7 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 67.81 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
EPS
Highest at CAD 0.46
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CAD)
Raw Material Cost
Fallen by -1,760.21% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Paramount Resources Ltd.
Operating Cash Flow
Lowest at CAD 488.2 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Interest
At CAD 1.6 MM has Grown at 14.29%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Interest
Highest at CAD 1.6 MM
in the last five periods and Increased by 14.29% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
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