Pampa Energia Stock Analysis, Valuation (NYSE:PAM)

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$32.47 $0.3 (0.92%) PAM stock closing price Aug 14, 2018 (Closing)

Watch the robo advisor video of Pampa Energia stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for PAM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Pampa Energia S.A. (ADR) Stock Rating 4/5

Amigobulls PAM stock analysis relies on business fundamentals such as Pampa Energia revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. Pampa Energia valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Pampa Energia stock rating is our opinion about the business fundamentals of the company.

Should you buy PAM stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 20.3.
  • The price to earnings multiple of 8.5 is attractive when compared with the sector average PE ratio of 19.6.
  • The lower PS ratio 0.7 for PAM stock versus Utilities sector average of 2 is a positive for the company.
  • Pampa Energia generates a high return on invested capital of 12.7.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Pampa Energia at 26.9.
  • The company has a good Free Cash Flow (FCF) margin of 10.7.

Should you sell PAM stock?

  • Pampa Energia's Net margins were poor at 8.1% in the last twelve months.
  • Pampa Energia has a debt/equity ratio of 1.89, which is worse than the average in the Utilities sector.

Comments on this video and Pampa Energia stock

Amigobulls Pampa Energia stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Pampa Energia revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.