Pampa Energía S.A.
Pampa Energía S.A. Fundamental Analysis
Pampa Energía S.A. (PAM) shows moderate financial fundamentals with a PE ratio of 11.75, profit margin of 18.87%, and ROE of 10.76%. The company generates $2.0B in annual revenue with weak year-over-year growth of -6.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PAM's fundamental strength across five key dimensions:
Efficiency Score
WeakPAM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPAM trades at attractive valuation levels.
Growth Score
WeakPAM faces weak or negative growth trends.
Financial Health Score
ExcellentPAM maintains a strong and stable balance sheet.
Profitability Score
WeakPAM struggles to sustain strong margins.
Key Financial Metrics
Is PAM Expensive or Cheap?
P/E Ratio
PAM trades at 11.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PAM's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values Pampa Energía S.A. at 1.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.71 times EBITDA. This is generally considered low.
How Well Does PAM Make Money?
Net Profit Margin
For every $100 in sales, Pampa Energía S.A. keeps $18.87 as profit after all expenses.
Operating Margin
Core operations generate 20.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.76 in profit for every $100 of shareholder equity.
ROA
Pampa Energía S.A. generates $5.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pampa Energía S.A. generates strong operating cash flow of $790.09M, reflecting robust business health.
Free Cash Flow
Pampa Energía S.A. generates weak or negative free cash flow of $-188.36M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.46 in free cash annually.
FCF Yield
PAM converts -4.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PAM Stacks Against Its Sector Peers
| Metric | PAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.75 | 19.58 | Better (Cheaper) |
| ROE | 10.76% | 917.00% | Weak |
| Net Margin | 18.87% | 853.00% | Weak |
| Debt/Equity | 0.54 | 1.42 | Strong (Low Leverage) |
| Current Ratio | 3.11 | 1.37 | Strong Liquidity |
| ROA | 5.70% | -4838.00% (disorted) | Weak |
PAM outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pampa Energía S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.64%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
75.49%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-2.01%
Industry Style: Defensive, Dividend, Income
Declining