Pampa Energia SA (PAM) AI Stock Analysis

• Market Cap: $3.71B
• Dividend Yield: N/A
• Average Volume (3M): 419.64K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.41
• Revenue Growth: 6.57%
• EPS Growth: 38.25%
• Country: US
• Employees: 2,013
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.70
• Shares Outstanding: 54,540,813
• 10 Day Avg. Volume: 451,738
• 30 Day Avg. Volume: 419,644
• PEG Ratio: 0.07
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 2.55
• P/FCF Ratio: -398.66
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: 6.24
• 1Y Price Target: $76.00
• Price Target Upside: 22.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $60.00 ▼(-3.04% Downside)

Pampa Energia SA's overall stock score is primarily influenced by its strong valuation, indicating potential undervaluation. However, bearish technical indicators and concerns over cash flow management weigh down the score. The financial performance is solid but offset by declining revenue growth and negative free cash flow.

Positive Factors

Diversified Energy Portfolio

A diversified energy portfolio reduces dependency on a single energy source, enhancing resilience against market fluctuations and regulatory changes.

Renewable Energy Expansion

Investment in renewable energy projects like PEPE 6 positions Pampa Energia to capitalize on the growing demand for sustainable energy, supporting long-term revenue growth.

Strong Profitability

High profitability and return on equity indicate efficient operations and effective management, providing a solid foundation for future growth and investment.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can impact the company's ability to expand and invest in new projects, potentially affecting long-term competitiveness and market position.

Negative Free Cash Flow

Negative free cash flow suggests challenges in cash management, which can limit the company's ability to fund operations and growth initiatives without external financing.

Increased Operating Costs

Rising operating costs can erode profit margins and reduce financial flexibility, potentially impacting the company's ability to sustain long-term growth and profitability.

Pampa Energia SA Business Overview & Revenue Model

Company Description

Pampa Energía S.A., an integrated power company, engages in the generation and transmission of electricity in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through combined thermal generation plants, open-cycle gas turbines, and hydroelectric power generation systems, as well as through a wind farm. The company has an installed electricity generation capacity of approximately 4,970 megawatts; and 21,414 kilometers of high voltage electricity transmission network in Argentina. It is also involved in the exploration and production of oil and gas. In addition, the company offers petrochemicals, such as styrene, synthetic rubber, and polystyrene. As of December 31, 2020, it had approximately 12.625 thousands of barrels of oil and LNG, as well as 24.537 millions of cubic meters of natural gas; owned a refinery with an installed capacity of approximately 25.8 thousand barrels per day; and operated a network of 92 gas stations. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.

How the Company Makes Money

Pampa Energia generates revenue through multiple streams, primarily from the sale of electricity generated by its power plants to the national grid and private customers. The company benefits from regulated tariffs for its electricity sales, which provide a stable revenue base. Additionally, it earns income from oil and gas production activities, including the exploration and extraction of hydrocarbons, which are sold in domestic and international markets. Strategic partnerships with government entities and private sector companies help Pampa Energia secure contracts and expand its operations. The company's focus on renewable energy projects also positions it to capitalize on growing demand for sustainable energy solutions, further diversifying its revenue sources.

Pampa Energia SA Financial Statement Overview

Summary

Pampa Energia SA shows strong profitability with high margins and a healthy return on equity. However, the decline in revenue growth and negative free cash flow are concerns. The company maintains a balanced leverage position, but cash flow management needs improvement.

Income Statement

Pampa Energia SA shows a strong net profit margin of 24.83% in TTM, indicating efficient cost management. However, the revenue growth rate has declined by 20% in TTM, which is a concern. The EBIT and EBITDA margins are robust at 35.75% and 46.16% respectively, reflecting solid operational performance.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.46 in TTM, suggesting a balanced approach to leveraging. The return on equity is healthy at 14.51%, indicating effective use of equity to generate profits. However, the equity ratio is not explicitly available, which limits a full assessment of asset financing.

Cash Flow

Operating cash flow is significantly high in TTM, but the free cash flow is negative, indicating potential issues in cash management. The operating cash flow to net income ratio is exceptionally high, suggesting strong cash generation relative to net income. However, the negative free cash flow to net income ratio highlights challenges in maintaining positive cash flow after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.88B	1.73B	1.83B	1.51B	1.07B
Gross Profit	531.92M	597.00M	620.00M	686.00M	555.00M	409.00M
EBITDA	723.63M	511.12M	658.00M	719.00M	641.00M	465.00M
Net Income	451.03M	619.00M	302.00M	456.00M	273.00M	225.00M
Balance Sheet
Total Assets	6.12B	6.34B	4.72B	4.74B	3.86B	4.89B
Cash, Cash Equivalents and Short-Term Investments	879.00M	1.67B	835.00M	700.00M	573.00M	491.00M
Total Debt	1.59B	2.09B	1.47B	1.62B	1.45B	1.62B
Total Liabilities	2.63B	3.05B	2.31B	2.46B	2.07B	3.12B
Stockholders Equity	3.48B	3.29B	2.40B	2.28B	1.78B	1.43B
Cash Flow
Free Cash Flow	-71.12B	-12.00M	-183.00M	203.00M	523.00M	569.00M
Operating Cash Flow	94.20B	435.00M	575.00M	619.00M	729.00M	693.00M
Investing Cash Flow	-50.82B	-344.00M	-446.00M	-575.00M	-474.00M	-255.00M
Financing Cash Flow	-443.52B	476.00M	-57.00M	-46.00M	-342.00M	-445.00M

Pampa Energia SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAM, the sentiment is Negative. The current price of 61.88 is below the 20-day moving average (MA) of 62.50, below the 50-day MA of 69.07, and below the 200-day MA of 76.72, indicating a bearish trend. The MACD of -1.72 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 61.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAM.

Pampa Energia SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEN	70 Outperform	$2.19B	4.47	37.17%	11.45%	5.51%	―
CEPU	69 Neutral	$1.45B	7.79	8.05%	4.10%	-9.20%	-53.99%
RNW	67 Neutral	$2.79B	25.58	3.39%	―	33.19%	486.74%
PAM	63 Neutral	$3.71B	7.24	14.22%	―	6.57%	38.25%
ENIC	61 Neutral	$5.23B	37.21	2.93%	5.82%	-19.56%	-83.31%
HE	49 Neutral	$1.93B	-33.63	-7.52%	―	-11.75%	96.86%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%