Paramount Resources Ltd. (POU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Peyto Exploration & Development Corp.

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Suncor Energy, Inc.

Crescent Point Energy Corp.

NuVista Energy Ltd.

Athabasca Oil Corp.

Baytex Energy Corp.

Imperial Oil Ltd.

Paramount Resources Ltd.

Enerplus Corp.

Why is Paramount Resources Ltd. ?

The company has declared negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD 383.6 MM
NET SALES(HY) At CAD 540.3 MM has Grown at -37.11%
PRE-TAX PROFIT(Q) At CAD 73.7 MM has Fallen at -82.18%

With ROE of 0.99%, it has a expensive valuation with a 1.58 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 21.25%, its profits have fallen by -98.2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Paramount Resources Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Paramount Resources Ltd.

21.25%

-0.47

30.80%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.21%

EBIT Growth (5y)

15.12%

EBIT to Interest (avg)

55.20

Debt to EBITDA (avg)

1.14

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.48

Tax Ratio

21.25%

Dividend Payout Ratio

7.81%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

14.30%

ROE (avg)

21.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

159

Industry P/E

Price to Book Value

1.58

EV to EBIT

1020.53

EV to EBITDA

11.96

EV to Capital Employed

1.76

EV to Sales

4.10

PEG Ratio

Dividend Yield

ROCE (Latest)

0.17%

ROE (Latest)

0.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at CAD 1,402.3 MM

OPERATING PROFIT(Q)

Highest at CAD 131.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 46.83 %

-31What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 383.6 MM

NET SALES(HY)

At CAD 540.3 MM has Grown at -37.11%

PRE-TAX PROFIT(Q)

At CAD 73.7 MM has Fallen at -82.18%

NET PROFIT(Q)

At CAD 56.41 MM has Fallen at -82.25%

ROCE(HY)

Lowest at 1.97%

INTEREST(Q)

At CAD 1.4 MM has Grown at 16.67%

RAW MATERIAL COST(Y)

Grown by 19.47% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.8 times

DIVIDEND PER SHARE(HY)

Lowest at CAD 8.8

Here's what is working for Paramount Resources Ltd.

Operating Profit

Highest at CAD 131.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 46.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CAD 1,402.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at CAD 91.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Paramount Resources Ltd.

Pre-Tax Profit

At CAD 73.7 MM has Fallen at -82.18%

over average net sales of the previous four periods of CAD 413.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 56.41 MM has Fallen at -82.25%

over average net sales of the previous four periods of CAD 317.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

At CAD 540.3 MM has Grown at -37.11%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Operating Cash Flow

Lowest at CAD 383.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 1.4 MM has Grown at 16.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debtors Turnover Ratio

Lowest at 8.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at CAD 8.8

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Raw Material Cost

Grown by 19.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales