Pampa Energia S.A. (PAM)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 11.0% above cost of capital
• Superior net profit margin of 11313.5% indicating pricing power and operational efficiency

Concerns

• Trades significantly above Graham Number ($20) with negative 307% margin of safety—limited downside protection
• Revenue declining at 5.3% year-over-year signals potential demand weakness or market share loss
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Pampa Energia S.A. is a small-cap industrials company valued at $4.6 billion. The business generates $2.0 billion in annual revenue with a 11313.5% net margin. From a quality standpoint, Pampa shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is attractively valued at 11.8x earnings, with trades far above its Graham Number ($20) with no margin of safety. Growth dynamics show revenue growing at -5.3% and profit growth of 7.2%. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer