Paramount Resources (TSX:POU) Financial Strength: 7 (As of Jun. 2026) — 40% Above Median

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TSX:POU Paramount Resources Ltd TSX:POU
63 GF Score
Price C$31.90
GF Value C$14.82
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Paramount Resources Financial Strength?

Paramount Resources TSX:POU +0.69% 63 Financial Strength is 7 as of Jun. 2026, which is 40% above its 10-year median of 5.00. GuruFocus rates TSX:POU with a GF Score™ of 63/100 and a GF Value™ of C$14.82 (Significantly Overvalued). The stock has 8 warning signs investors should review.

Paramount Resources has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Paramount Resources's Interest Coverage for the quarter that ended in Jun. 2026 was 54.44. Paramount Resources's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.02. As of today, Paramount Resources's Altman Z-Score is 3.82.


Paramount Resources  (TSX:POU) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Paramount Resources has the Financial Strength Rank of 7.


Paramount Resources Financial Strength Related Terms


TSX:POU vs COP, EOG, FANG: Financial Strength Comparison

For the Oil & Gas E&P subindustry, Paramount Resources's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Paramount Resources's Financial Strength distribution charts can be found below:

* The bar in red indicates where Paramount Resources's Financial Strength falls into.


TSX:POU
63GF Score
Paramount Resources Ltd TSX:POU
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Paramount Resources Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Paramount Resources's Interest Expense for the months ended in Jun. 2026 was C$-2 Mil. Its Operating Income for the months ended in Jun. 2026 was C$87 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was C$21 Mil.

Paramount Resources's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*87.1/-1.6
=54.44

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Paramount Resources's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3.5 + 21.2) / 1325.2
=0.02

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Paramount Resources has a Z-score of 3.82, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.82 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
Paramount Resources (TSX:POU) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Paramount Resources and its competitors. This is 40% above median its historical median of 5.00. Over the past decade, Paramount Resources' Financial Strength has ranged from 2.00 to 9.00.
Is Paramount Resources' Financial Strength too high?
Paramount Resources' current Financial Strength of 7 is 40% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 9.00. Overall, Paramount Resources has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paramount Resources' Financial Strength compare to COP and EOG?
Paramount Resources' Financial Strength of 7 can be compared against companies in the Oil & Gas industry. Historically, Paramount Resources' own Financial Strength has ranged from 2.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Paramount Resources and its competitors. Paramount Resources's current Financial Strength is 7, which is 40% above median its own 10-year median of 5.00. 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$14.82, compared to a current price of C$31.90 — trading 115.2% above its estimated fair value. The current Financial Strength is 7, which is 40% above median its 10-year median of 5.00. Paramount Resources' overall GF Score™ is 63/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Paramount Resources (TSX:POU), the current Financial Strength is 7 as of Jun. 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$31.90 is trading 115.2% above its estimated GF Value™ of C$14.82. GuruFocus considers Paramount Resources to be Significantly Overvalued.

Key valuation signals for TSX:POU:

  • Financial Strength: 7 (40% above median its 10-year median of 5.00)
  • GF Value™: C$14.82 vs. price of C$31.90 (115.2% above fair value)
  • GF Score™: 63/100 with 8 warning signs

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 Business Description

Industry EnergyOil & Gas
Address 888 - 3rd Street SW, Suite 4700, Calgary, AB, CAN, T2P 5C5
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.
63GF Score

Get the complete analysis for TSX:POU

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$31.90
Price
C$14.82
GF Value