Manning & Napier Advisors Inc. (Trades, Portfolio), an investment firm headquartered in New York, purchased 144,670 shares of Pampa Energia SA (PAM, Financial) for an average price of $46.08 during the first quarter.
Since the purchase, Pama Energia’s stock price has gained an estimated 26%.
Headquartered in Buenos Aires, Argentina, Pampa Energia is an integrated electricity company. Through its subsidiaries, the company is engaged in the generation, transmission and distribution of electricity in Argentina.
It operates through the following three segments: Gas Transportation, Production and Marketing of Gas Liquids and Other Services.
Pampa Energia has a market cap of $4.26 billion, an enterprise value of $6.17 billion, a price-book (P/B) ratio of 5.96, a price-sales (P/S) ratio of 2.93, a quick ratio of 0.70 and a current ratio of 0.81.
According to GuruFocus, the company has a 4 of 10 financial strength rating with a cash-debt ratio of 0.22 and an equity-asset ratio of 0.14. Its Altman Z-Score of -0.83 indicates it is experiencing financial stress and could potentially file for bankruptcy within the next two years. Its Beneish M-Score of -0.77 suggests it is a manipulator of its financial statements.
The company has an 8 of 10 profitability and growth rating. It has an operating margin of 7.08%, a net margin of 0.03%, a return on assets (ROA) of -0.02% and a return on capital (ROC) of 11.68%.
Over the past five years, Pampa Energia has averaged a 62.74% increase in revenue, a 174.84% increase in capital spending and a 12.95% increase in gross margin.
Below is a Peter Lynch chart showing Pampa Energia is trading above its intrinsic value.
Disclosure: Author does not own any shares of this company.
Start aÂ free 7-day trial of Premium MembershipÂ to GuruFocus.