Paramount ResourcesTSX:POU +0.66%62 Gross Margin % is 40.00% as of Mar. 2026, which is 1% below its 10-year median of 40.56. GuruFocus rates TSX:POU with a GF Score™ of 62/100 and a GF Value™ of C$13.03 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 867 Oil & Gas companies, Paramount Resources ranks better than 62.05% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Paramount Resources had a gross margin of 40.00% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Paramount Resources Gross Margin % Related Terms
Paramount Resources Gross Margin % Historical Data
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The historical data trend for Paramount Resources's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:POU vs COP, EOG, OXY: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Paramount Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paramount Resources Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Paramount Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paramount Resources's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Paramount Resources (TSX:POU) has a Gross Margin % of 40.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Paramount Resources and its competitors. This is near median its historical median of 40.56. According to the industry distribution chart, Paramount Resources ranks #329 out of 867 companies in the Oil & Gas industry, placing it in the top 37.9%.
Is Paramount Resources' Gross Margin % too high?
Paramount Resources' current Gross Margin % of 40.00% is near median its 10-year median of 40.56. The Oil & Gas industry median Gross Margin % is 25.70. Paramount Resources' value of 40.00% is 55.6% above this industry median. Based on the distribution chart, Paramount Resources ranks #329 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Paramount Resources has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paramount Resources' Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Paramount Resources ranks #329 out of 867 companies for Gross Margin %. This puts Paramount Resources in the upper half of its industry. The industry median Gross Margin % is 25.70. Paramount Resources' value of 40.00% is 55.6% above this benchmark. While the company's 10-year median is 40.56 vs. the industry median of 25.70, Paramount Resources has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paramount Resources's current Gross Margin % of 40.00% is 55.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Paramount Resources and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Resources's current Gross Margin % is 40.00%, which is near median its own 10-year median of 40.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Resources stock overvalued right now?
Based on GuruFocus' analysis, Paramount Resources (TSX:POU) is currently considered Significantly Overvalued. The stock's GF Value™ is C$13.03, compared to a current price of C$27.57 — trading 111.6% above its estimated fair value. The current Gross Margin % is 40.00%, which is near median its 10-year median of 40.56 and 55.6% above the Oil & Gas industry median of 25.70. Paramount Resources' overall GF Score™ is 62/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Paramount Resources (TSX:POU), the current Gross Margin % is 40.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paramount Resources (TSX:POU) Overvalued in 2026?
Based on GuruFocus' analysis, Paramount Resources stock appears to be overvalued.
The current stock price of C$27.57 is trading 111.6% above its estimated GF Value™ of C$13.03.
GuruFocus considers Paramount Resources to be Significantly Overvalued.
Key valuation signals for TSX:POU:
Gross Margin %: 40.00% (near median its 10-year median of 40.56)
GF Value™: C$13.03 vs. price of C$27.57 (111.6% above fair value)
Industry Position: 55.6% above the Oil & Gas median (#329 of 867)
No single metric tells the full story. See the TSX:POU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paramount Resources Ltd is a Canadian energy company that explores and develops both conventional and unconventional petroleum and natural gas. The company explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and pre-development plays, and holds a portfolio of investments in other entities. Its primary focus in the Grande Prairie Region is its Karr and Wapiti Montney properties Region includes the Kaybob North Duvernay development and other natural gas and oil-producing properties. The Central Alberta and Other Region includes the Willesden Green Duvernay development in central Alberta and shale gas properties in the Horn River Basin and Liard Basin in northeast British Columbia.
62GF Score
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