Paramount ResourcesTSX:POU -1.60%62 3-Year ROIIC % is 57.48 as of Dec. 2025, which is 510% above its 10-year median of 9.43. GuruFocus rates TSX:POU with a GF Score™ of 62/100 and a GF Value™ of C$13.07 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 925 Oil & Gas companies, Paramount Resources ranks better than 87.03% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Paramount Resources's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 57.48%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Paramount Resources's 3-Year ROIIC % or its related term are showing as below:
TSX:POU's 3-Year ROIIC % is ranked better than 87.03% of 925
companies
in the Oil & Gas industry
Industry Median: -0.02
vs TSX:POU: 57.48
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Paramount Resources 3-Year ROIIC % Related Terms
Paramount Resources 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Paramount Resources's 3-Year ROIIC % 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, FANG: 3-Year ROIIC % Comparison
For the Oil & Gas E&P subindustry, Paramount Resources's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Paramount Resources's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Paramount Resources's 3-Year ROIIC % falls into.
Paramount Resources's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 18.04608 (Dec. 2025) - 773.28657 (Dec. 2022) )
/
( 2791 (Dec. 2025) - 4104.9 (Dec. 2022) )
=
-755.24049
/
-1313.9
=
57.48%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Paramount Resources (TSX:POU) has a 3-Year ROIIC % of 57.48 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Paramount Resources and its competitors. This is 510% above median its historical median of 9.43. According to the industry distribution chart, Paramount Resources ranks #120 out of 925 companies in the Oil & Gas industry, placing it in the top 13%.
Is Paramount Resources' 3-Year ROIIC % too high?
Paramount Resources' current 3-Year ROIIC % of 57.48 is 510% above median its 10-year median of 9.43. Based on the distribution chart, Paramount Resources ranks #120 out of 925 companies in the Oil & Gas industry, which is in the top quartile — a strong position 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' 3-Year ROIIC % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Paramount Resources ranks #120 out of 925 companies for 3-Year ROIIC %. This places Paramount Resources in the top 13% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Oil & Gas company?
A good 3-Year ROIIC % depends on the Oil & Gas industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Paramount Resources and its competitors. Paramount Resources's current 3-Year ROIIC % is 57.48, which is 510% above median its own 10-year median of 9.43. 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$13.07, compared to a current price of C$27.64 — trading 111.5% above its estimated fair value. The current 3-Year ROIIC % is 57.48, which is 510% above median its 10-year median of 9.43. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Paramount Resources (TSX:POU), the current 3-Year ROIIC % is 57.48 as of Dec. 2025. 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$27.64 is trading 111.5% above its estimated GF Value™ of C$13.07.
GuruFocus considers Paramount Resources to be Significantly Overvalued.
Key valuation signals for TSX:POU:
3-Year ROIIC %: 57.48 (510% above median its 10-year median of 9.43)
GF Value™: C$13.07 vs. price of C$27.64 (111.5% above fair value)
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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