Paramount Resources (TSX:POU) ROCE %: 8.34% (As of Mar. 2026)


TSX:POU Paramount Resources Ltd TSX:POU
62 GF Score
Price C$27.39
GF Value C$13.02
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Paramount Resources ROCE %?

Paramount Resources TSX:POU -3.04% 62 ROCE % is 8.34% as of Mar. 2026. GuruFocus rates TSX:POU with a GF Score™ of 62/100 and a GF Value™ of C$13.02 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Paramount Resources's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.34%.

Paramount Resources  (TSX:POU) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Paramount Resources ROCE % Related Terms

Paramount Resources ROCE % Historical Data

* Premium members only.

The historical data trend for Paramount Resources's ROCE % 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.

Paramount Resources ROCE % Chart

Paramount Resources Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.70 22.70 14.91 9.76 44.29

Paramount Resources Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 179.75 0.72 -0.27 -0.06 8.34
TSX:POU
62GF Score
Paramount Resources Ltd TSX:POU
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Paramount Resources ROCE % Calculation

Paramount Resources's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1677.3/( ( (4757.5 - 544.9) + (3587.2 - 225.1) )/ 2 )
=1677.3/( (4212.6+3362.1)/ 2 )
=1677.3/3787.35
=44.29 %

Paramount Resources's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=283.6/( ( (3587.2 - 225.1) + (3746.7 - 305) )/ 2 )
=283.6/( ( 3362.1 + 3441.7 )/ 2 )
=283.6/3401.9
=8.34 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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 ROCE % →
What does a ROCE % of 8.34% mean?
Paramount Resources (TSX:POU) has a ROCE % of 8.34% as of Mar. 2026.
Is Paramount Resources' ROCE % too high?
Paramount Resources' current ROCE % is 8.34%. The Oil & Gas industry median ROCE % is 6.79. Paramount Resources' value of 8.34% is 22.8% above this industry median. 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' ROCE % compare to COP and EOG?
Paramount Resources' ROCE % of 8.34% can be compared against companies in the Oil & Gas industry. The industry median ROCE % is 6.79. Paramount Resources' value of 8.34% is 22.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Oil & Gas company?
The median ROCE % among Oil & Gas companies is 6.79, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paramount Resources's current ROCE % of 8.34% is 22.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Oil & Gas industry, the median ROCE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Resources's current ROCE % is 8.34%. 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$13.02, compared to a current price of C$27.39 — trading 110.4% above its estimated fair value. The current ROCE % is 8.34% and 22.8% above the Oil & Gas industry median of 6.79. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Paramount Resources (TSX:POU), the current ROCE % is 8.34% 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$27.39 is trading 110.4% above its estimated GF Value™ of C$13.02. GuruFocus considers Paramount Resources to be Significantly Overvalued.

Key valuation signals for TSX:POU:

  • ROCE %: 8.34%
  • GF Value™: C$13.02 vs. price of C$27.39 (110.4% above fair value)
  • GF Score™: 62/100 with 6 warning signs
  • Industry Position: 22.8% above the Oil & Gas median

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.
62GF Score

Get the complete analysis for TSX:POU

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

C$27.39
Price
C$13.02
GF Value