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Pampa Energia SA (NYSE:PAM)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Pampa Energia SA has an F-score of 6 indicating the company's financial situation is typical for a stable company.

PAM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 6

3
8

During the past 12 years, the highest Piotroski F-Score of Pampa Energia SA was 8. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 159.298385228 + 41.6049027664 + -47.8155872824 + -62.484723549 = $91 Mil.
Cash Flow from Operations was 92.0703855366 + 11.8792796494 + 0 + 0 = $104 Mil.
Revenue was 142.585103917 + 289.422760887 + 297.272980236 + 663.520807146 = $1,393 Mil.
Gross Profit was -6.46102140153 + 64.9019446727 + 7.13833528974 + 114.754889637 = $180 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(2546.82630846 + 2252.15243761 + 2159.53095042 + 2430.97570554 + 5235.6585047) / 5 = $2925.02878135 Mil.
Total Assets at the begining of this year (Sep15) was $2,547 Mil.
Long-Term Debt was $1,109 Mil.
Total Current Assets was $1,636 Mil.
Total Current Liabilities was $2,028 Mil.
Net Income was 85.1335516314 + 102.264589499 + 6.72173003907 + 4.28288822948 = $198 Mil.

Revenue was 194.362062917 + 190.257831899 + 192.255543939 + 202.068004637 = $779 Mil.
Gross Profit was 2.46988656298 + 13.9011531004 + -0.509547130358 + 3.57806068728 = $19 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(1830.36667063 + 1972.51467665 + 2212.93717473 + 2280.41281021 + 2546.82630846) / 5 = $2168.61152814 Mil.
Total Assets at the begining of last year (Sep14) was $1,830 Mil.
Long-Term Debt was $546 Mil.
Total Current Assets was $801 Mil.
Total Current Liabilities was $1,018 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Pampa Energia SA's current net income (TTM) was 91. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Pampa Energia SA's current cash flow from operations (TTM) was 104. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Sep15)
=90.6029771624/2546.82630846
=0.03557486

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=198.402759398/1830.36667063
=0.10839509

Pampa Energia SA's return on assets of this year was 0.03557486. Pampa Energia SA's return on assets of last year was 0.10839509. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Pampa Energia SA's current net income (TTM) was 91. Pampa Energia SA's current cash flow from operations (TTM) was 104. ==> 104 > 91 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=1109.42859537/2925.02878135
=0.3792881

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=546.112440573/2168.61152814
=0.25182585

Pampa Energia SA's gearing of this year was 0.3792881. Pampa Energia SA's gearing of last year was 0.25182585. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Sep16)=Total Current Assets/Total Current Liabilities
=1636.04142994/2027.71924179
=0.80683824

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=800.522850792/1018.29169459
=0.78614296

Pampa Energia SA's current ratio of this year was 0.80683824. Pampa Energia SA's current ratio of last year was 0.78614296. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Pampa Energia SA's number of shares in issue this year was 67.8. Pampa Energia SA's number of shares in issue last year was 62.9. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=180.334148198/1392.80165219
=0.12947583

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=19.4395532203/778.943443392
=0.02495631

Pampa Energia SA's gross margin of this year was 0.12947583. Pampa Energia SA's gross margin of last year was 0.02495631. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Sep15)
=1392.80165219/2546.82630846
=0.54687736

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=778.943443392/1830.36667063
=0.42556689

Pampa Energia SA's asset turnover of this year was 0.54687736. Pampa Energia SA's asset turnover of last year was 0.42556689. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Pampa Energia SA has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Pampa Energia SA Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 11000111
Question 2 11111111
Question 3 01001111
Question 4 11111111
Question 5 11101001
Question 6 00100101
Question 7 01111101
Question 8 00000010
Question 9 00110000
F-score 46645657

Pampa Energia SA Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 0011111111
Question 2 1111111111
Question 3 0011111000
Question 4 1111111111
Question 5 1000001110
Question 6 0001111111
Question 7 1000001000
Question 8 1111110111
Question 9 0001110001
F-score 5357777666
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