Pampa Energia S.A. (PAM)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett's search for durable economics and Graham's insistence on a margin of safety. Pampa is an integrated Argentine power company with 5,472 MW of generation plus oil, gas, and petrochemicals. Scale and integration can matter, but in Argentina regulation, tariffs, and commodity prices shape returns more than a classic moat. The latest quarter—fiscal Q2 2026—showed revenue of $746.0 million, net income of $172.0 million, and a 23.06% margin. That is strong profitability. The supplied growth figures are extraordinary—53.50% revenue and 330.00% profit—but without a named period I cannot treat them as filed results. At the close on 2026-10-13, price was $81.34. FairStock calculates P/E 7.39, P/B 1.07, EV/EBITDA 5.65, ROE 15.26%, ROCE 4.21%, and D/E 0.65. On earnings and book value, it screens cheap. But free cash flow is negative $455.0 million, a -10.0% FCF yield, and the Altman Z-Score is 1.28—distress territory. The Graham Number is $27.29, giving a -198.06% margin of safety, meaning the price is far above Graham's asset-and-earnings test. Piotroski is 7/9, which is a positive sign. Beta is -0.24. My conclusion: the business shows profit but not cash. Low multiples can be a bargain or a warning. I would need positive cash flow and consistent filed results before trusting the headline growth. The price may be fair for a cyclical Argentine conglomerate, not a clear margin-of-safety bargain.

In plain English: Pampa Energia S.A. makes electricity and also works in oil, gas, and chemicals in Argentina. Its latest quarter was profitable with a high profit margin, but the company used more cash than it generated over the past year. At the recent price, the shares look low compared with profits but high compared with a conservative asset-value estimate, so the value picture is mixed.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer