Pampa Energia SA (PAM) AI Stock Analysis

• Market Cap: $5.14B
• Dividend Yield: N/A
• Average Volume (3M): 384.24K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.44
• Revenue Growth: 6.37%
• EPS Growth: 7.35%
• Country: US
• Employees: 2,013
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.40
• Shares Outstanding: 54,540,813
• 10 Day Avg. Volume: 164,944
• 30 Day Avg. Volume: 384,237
• PEG Ratio: 0.02
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 2.55
• P/FCF Ratio: -398.66
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 6.57
• Enterprise Value/Ebitda: 3.55
• 1Y Price Target: $113.00
• Price Target Upside: 87.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 6.48
• Revenue Forecast (FY): $1.98B

• Rating: 74 Outperform
• Price Target: $98.00 ▲(62.71% Upside)

Pampa Energia SA's stock score is driven by strong technical indicators and reasonable valuation. Financial performance is solid, but cash flow issues and high CapEx are concerns. Positive earnings call guidance and production growth provide a favorable outlook.

Positive Factors

Revenue Growth

The 10% revenue growth in the oil and gas segment highlights Pampa's ability to expand its market presence and capitalize on increased shale oil output, supporting long-term revenue stability.

Regulatory Changes

The new power market regulations in Argentina could benefit Pampa's strategically located power units, potentially allowing for higher profit margins and improved competitive positioning.

Production Growth

Significant production growth at Rincón de Aranda demonstrates Pampa's operational efficiency and capacity expansion, which can drive future revenue and profitability.

Negative Factors

High CapEx Levels

The high capital expenditure indicates ongoing investment requirements, which could strain financial resources and impact cash flow, posing challenges to long-term financial health.

Profit Decline

The decline in gross profit due to rising costs reflects profitability pressures, which could affect Pampa's ability to maintain margins and financial stability in the long run.

Negative Free Cash Flow

Negative free cash flow suggests challenges in converting profits into cash, which may limit Pampa's financial flexibility and ability to fund future growth initiatives.

Pampa Energia SA Business Overview & Revenue Model

Company Description

Pampa Energia SA (PAM) is a leading integrated energy company based in Argentina, primarily engaged in the generation and distribution of electricity. The company operates in various segments including electricity generation, oil and gas exploration, and the production of petrochemicals. Pampa Energia owns and operates a diverse portfolio of power plants, which utilize different energy sources such as natural gas, hydroelectric, and wind. Additionally, the company is involved in the transmission and distribution of electricity across various regions in Argentina, contributing significantly to the country's energy market.

How the Company Makes Money

Pampa Energia generates revenue through multiple streams, primarily from the sale of electricity generated by its power plants, which are sold to the national grid and local distribution companies. The company also derives income from its oil and gas exploration and production activities, selling crude oil and natural gas to local and international markets. Furthermore, Pampa Energia benefits from its investments in petrochemical production, supplying various industrial sectors. The company may engage in strategic partnerships and contracts with governmental bodies and private enterprises, enhancing its revenue through long-term agreements and joint ventures. Key factors contributing to its earnings include the demand for electricity in Argentina, fluctuations in energy prices, and regulatory frameworks governing the energy sector.

Pampa Energia SA Financial Statement Overview

Summary

Pampa Energia SA shows stable revenue growth and strong EBIT and EBITDA margins. The balance sheet indicates improved leverage, but cash flow challenges persist with negative free cash flow, suggesting potential liquidity issues.

Income Statement

Pampa Energia SA shows a stable revenue growth rate of 3.13% TTM, with strong EBIT and EBITDA margins at 28.73% and 43.34% respectively. However, the gross profit margin has decreased from 31.82% in 2024 to 27.46% TTM, indicating rising costs. The net profit margin is robust at 24.83% TTM, though it has decreased from 32.99% in 2024, suggesting some profitability pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.46 TTM from 0.64 in 2024, indicating better leverage management. Return on equity is healthy at 14.51% TTM, though slightly lower than 18.81% in 2024, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow is strong with a high coverage ratio of 144.77% TTM. However, free cash flow is negative, indicating potential liquidity issues. The free cash flow to net income ratio is negative, highlighting challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.88B	1.73B	1.83B	1.51B	1.07B
Gross Profit	638.51M	597.00M	625.00M	690.00M	557.00M	410.00M
EBITDA	1.18B	1.02B	1.25B	1.01B	773.00M	534.00M
Net Income	373.47M	619.00M	302.00M	456.00M	273.00M	-367.00M
Balance Sheet
Total Assets	6.27B	6.34B	4.72B	4.74B	3.86B	4.90B
Cash, Cash Equivalents and Short-Term Investments	886.03M	1.67B	831.00M	692.00M	573.00M	491.78M
Total Debt	1.81B	2.09B	1.47B	1.63B	1.45B	1.63B
Total Liabilities	2.81B	3.05B	2.31B	2.46B	2.07B	3.12B
Stockholders Equity	3.45B	3.29B	2.40B	2.28B	1.78B	1.43B
Cash Flow
Free Cash Flow	-172.72M	-12.00M	-183.00M	172.00M	433.68M	438.42M
Operating Cash Flow	654.72M	435.00M	575.00M	619.00M	638.58M	557.29M
Investing Cash Flow	-471.63M	-344.00M	-446.00M	-575.00M	-499.59M	-222.48M
Financing Cash Flow	29.85M	476.00M	-57.00M	-46.00M	-197.47M	-248.45M

Pampa Energia SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAM, the sentiment is Positive. The current price of 60.23 is below the 20-day moving average (MA) of 88.21, below the 50-day MA of 75.58, and below the 200-day MA of 74.13, indicating a bullish trend. The MACD of 3.78 indicates Positive momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAM.

Pampa Energia SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEPU	76 Outperform	$2.64B	10.76	13.07%	2.14%	-4.16%	-40.47%
KEN	75 Outperform	$3.26B	6.65	-6.91%	7.66%	5.51%	―
PAM	74 Outperform	$5.14B	14.16	10.44%	―	6.37%	7.35%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$2.76B	26.52	7.64%	―	42.09%	219.69%
ENIC	56 Neutral	$5.36B	78.50	1.30%	5.78%	-25.78%	-91.93%
HE	52 Neutral	$1.92B	14.69	7.14%	―	-16.62%	―

Pampa Energia SA Corporate Events

Pampa Energía Releases Q3 2025 Financial Statements

On November 10, 2025, Pampa Energía S.A. released its unaudited consolidated condensed interim financial statements for the period ending September 30, 2025. The financial report, reviewed by Price Waterhouse & Co., indicated no significant issues, suggesting that the company’s financial statements were prepared in accordance with international standards. This release provides stakeholders with an updated view of the company’s financial health, which is crucial for maintaining investor confidence and supporting its market position.

Pampa Energía Announces Full Redemption of 2026 Notes

On November 6, 2025, Pampa Energía S.A. announced its decision to fully redeem its 9.500% Notes due 2026. The redemption will occur on December 8, 2025, at a redemption price of 100% of the principal amount plus any accrued interest. This move will extinguish the company’s obligations under these notes, potentially impacting its financial structure and stakeholder interests.

Pampa Energía Reports Revenue Growth Amid Profit Decline

Pampa Energía S.A. reported a 10% increase in revenue from its oil and gas segment for the nine-month period ending September 30, 2025, compared to the same period in 2024, primarily due to increased shale oil output. However, the company faced a 6% decrease in gross profit due to higher costs, weaker gas demand, and lower average sale prices for gas and oil. The operating income decreased by 22%, with the company recording a loss of $38 million for the period, a significant drop from the $71 million profit recorded in the previous year. This financial performance reflects challenges such as increased costs, lower export prices, and weaker demand, impacting Pampa’s profitability and market positioning.

Pampa Energía S.A. Releases Q3 2025 Financial Results

On November 5, 2025, Pampa Energía S.A. released its Q3 2025 results, providing insights into its financial performance and operational strategies. The announcement is part of the company’s regular reporting under the Securities Exchange Act of 1934, indicating its compliance and transparency in financial disclosures.

Pampa Energía Reports Stable Financial Performance Amid Market Challenges

Pampa Energía S.A. released its unaudited consolidated condensed interim financial statements for the nine and three-month periods ending September 30, 2025. The company’s revenue increased to $1,491 million for the nine-month period, up from $1,441 million in the previous year, while the three-month period saw revenue rise to $591 million from $540 million. Despite a slight decline in gross profit from $511 million to $491 million for the nine-month period, the company maintained a stable operating income of $402 million, reflecting its resilience in the energy sector. The financial results highlight Pampa’s steady performance amidst challenging market conditions, underscoring its strategic positioning and operational efficiency.

Pampa Energía Reports Q3 2025 Financial Results Amid New Power Market Regulations

Pampa Energía S.A. announced its financial results for the third quarter of 2025, reporting a 9% increase in sales to US$591 million, driven by higher crude oil production and increased gas exports. The company’s adjusted EBITDA rose by 16% to US$322 million, although net income fell by 84% due to higher non-cash deferred tax charges. The company also highlighted new regulatory changes in Argentina’s power market, effective November 1, 2025, which aim to enhance competition and decentralize fuel supply. These changes could potentially benefit Pampa’s strategically located power units, allowing them to achieve higher profit margins.

Pampa Energía Approves New Framework for 2026 Projects

On November 4, 2025, Pampa Energía S.A. announced that its Board of Directors approved a new general framework for acquiring services from Sociedad Argentina de Construcción y Desarrollo Estratégico S.A. for construction and engineering projects planned for the next year. This framework aligns with previous agreements from past years, ensuring operations are conducted at arm’s length market conditions, as confirmed by the company’s Audit Committee. The approval is expected to streamline Pampa’s project executions and reinforce its strategic partnerships, potentially impacting its operational efficiency and stakeholder relations positively.

Pampa Energia Announces $100 Million Share Repurchase Plan

On September 8, 2025, Pampa Energia S.A. announced the approval of a share repurchase plan aimed at reducing the gap between the company’s fair value and its stock market price. The plan involves repurchasing up to $100 million worth of shares or 10% of the company’s capital stock, with a maximum price of $60 per ADR on the NYSE and AR$3,480 per share on the Argentine market. This strategic move is intended to enhance shareholder value and utilize the company’s liquidity without compromising its solvency.