Paramount ResourcesTSX:POU +0.66%62 Interest Coverage is 28.79 as of Mar. 2026, which is 34% below its 10-year median of 43.90. 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 728 Oil & Gas companies, Paramount Resources ranks worse than 94.51% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Paramount Resources's
Operating Income
for the
three
months ended in Mar. 2026 was C$40.3 Mil. Paramount Resources's Interest Expense for the
three
months ended in Mar. 2026 was C$-1.4 Mil.
Paramount Resources's interest coverage for the quarter that ended in Mar. 2026 was 28.79.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Paramount Resources's Interest Coverage or its related term are showing as below:
TSX:POU'
s Interest Coverage Range Over the Past 10 Years
Min: 0.67 Med: 43.9 Max: 153.7
Current: 0.67
TSX:POU's Interest Coverage is ranked worse than 94.51% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs TSX:POU: 0.67
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Paramount Resources Interest Coverage Related Terms
Paramount Resources Interest Coverage Historical Data
* Premium members only.
The historical data trend for Paramount Resources's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSX:POU vs COP, EOG, OXY: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Paramount Resources's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Paramount Resources's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Paramount Resources's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Paramount Resources (TSX:POU) has a Interest Coverage of 28.79 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Paramount Resources and its competitors. This is 34% below median its historical median of 43.90. Over the past decade, Paramount Resources' Interest Coverage has ranged from 0.67 to 153.70. According to the industry distribution chart, Paramount Resources ranks #688 out of 728 companies in the Oil & Gas industry, placing it in the top 94.5%.
Is Paramount Resources' Interest Coverage too high?
Paramount Resources' current Interest Coverage of 28.79 is 34% below median its 10-year median of 43.90. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 153.70. The Oil & Gas industry median Interest Coverage is 5.84. Paramount Resources' value of 28.79 is 393% above this industry median. Based on the distribution chart, Paramount Resources ranks #688 out of 728 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. 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' Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Paramount Resources ranks #688 out of 728 companies for Interest Coverage. This places Paramount Resources in the lower half of its industry. The industry median Interest Coverage is 5.84. Paramount Resources' value of 28.79 is 393% above this benchmark. Historically, Paramount Resources' own Interest Coverage has ranged from 0.67 to 153.70 over the past decade. While the company's 10-year median is 43.90 vs. the industry median of 5.84, 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 Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paramount Resources's current Interest Coverage of 28.79 is 393% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Paramount Resources and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Resources's current Interest Coverage is 28.79, which is 34% below median its own 10-year median of 43.90. 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 Interest Coverage is 28.79, which is 34% below median its 10-year median of 43.90 and 393% above the Oil & Gas industry median of 5.84. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Paramount Resources (TSX:POU), the current Interest Coverage is 28.79 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:
Interest Coverage: 28.79 (34% below median its 10-year median of 43.90)
GF Value™: C$13.03 vs. price of C$27.57 (111.6% above fair value)
Industry Position: 393% above the Oil & Gas median (#688 of 728)
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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