Patria Investments Limited Class A Common Shares (PAX)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 16.0% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.27, providing financial flexibility
• Attractive 4.7% dividend yield providing steady income returns
• FairStock composite score of 76/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($8) with negative 70% margin of safety—limited downside protection
• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Patria Investments Limited Class A Common Shares is a small-cap financial services company valued at $2.0 billion. Revenue stands at $382 million. From a quality standpoint, Patria shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.7 warrants caution. On valuation, the stock is reasonably priced at 18.9x earnings, with trades above its Graham Number with a negative 70% margin. Growth dynamics show revenue growing at 10.8% and profit growth of 4743.6%. The 4.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 76/100 reflects strong 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 financial services 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