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Patria Investments (PAX)
NASDAQ:PAX
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Patria Investments
(NASDAQ:PAX)
80Outperform
Patria Investments (PAX) vs. S&P 500 (SPY)
Market Cap
$1.70B
Dividend Yield5.68%
Average Volume (3M)607.86K
Price to Earnings (P/E)25.4
Beta (1Y)0.81
Revenue Growth4.48%
EPS Growth-27.43%
CountryUS
Employees430
SectorFinancial
Sector Strength77
IndustryAsset Management Services
Share Statistics
EPS (TTM)0.43
Shares Outstanding61,887,585
10 Day Avg. Volume690,894
30 Day Avg. Volume607,862
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)14.61
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.50Price Target Upside31.10% Upside
Rating ConsensusHold
Number of Analyst Covering2
Patria Investments Business Overview & Revenue Model
Company DescriptionPatria Investments (PAX) is a leading private markets investment firm based in Latin America, specializing in the management of alternative assets. The company operates across various sectors, including private equity, infrastructure, real estate, and credit, providing a range of investment solutions to institutional investors. Patria Investments leverages its deep regional expertise and extensive network to identify and capitalize on high-potential investment opportunities within the dynamic Latin American market.
How the Company Makes MoneyPatria Investments generates revenue primarily through the management fees and performance-based incentive fees associated with its investment funds. The company raises capital from institutional investors and allocates it across its different asset classes, seeking to deliver superior returns. Management fees are typically calculated as a percentage of the committed capital or assets under management, while performance fees are based on the profitability of the investments, aligning Patria's interests with those of its clients. Additionally, the firm may engage in strategic partnerships and co-investments, further enhancing its revenue potential and expanding its market presence.
Patria Investments Financial Statement Overview
Summary
Patria Investments demonstrates strong financial health, with consistent revenue growth and robust profitability. The balance sheet remains solid with low leverage, and cash flow generation is efficient. Minor pressures on gross profit margins and equity growth need monitoring, but the company is well-positioned in the asset management industry.Income Statement
Patria Investments shows strong profitability with a consistent increase in total revenue from $115 million in 2020 to $329 million in 2023. The gross profit margin remains robust, and the EBIT and EBITDA margins are healthy, indicating effective cost management. However, a slight decrease in gross profit in 2023 compared to 2022 suggests some margin pressure.85
Very Positive
Balance Sheet
The balance sheet is stable with a low debt-to-equity ratio, reflecting a conservative leverage approach. The equity ratio indicates a solid capital structure. However, a modest decrease in stockholders' equity from 2022 to 2023 signifies potential pressures on equity growth.78
Positive
Cash Flow
The company has demonstrated strong free cash flow growth from 2020 to 2023, supporting operational liquidity. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net income. However, the fluctuation in financing activities from positive in 2022 to negative in 2023 suggests changing financing strategies.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 314.28M | 329.41M | 258.88M | 235.51M | 115.02M | 123.22M | Gross Profit |
| 214.88M | 202.74M | 224.37M | 148.75M | 81.83M | 80.26M | EBIT |
| 133.99M | 163.65M | 111.61M | 122.17M | 65.13M | 64.52M | EBITDA |
| 137.53M | 146.36M | 132.81M | 130.93M | 72.81M | 72.80M | Net Income Common Stockholders |
| 81.70M | 118.40M | 92.96M | 122.48M | 62.21M | 58.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 37.15M | 33.20M | 312.37M | 167.13M | 23.98M | 37.15M | Total Assets |
| 114.86M | 1.01B | 976.24M | 761.32M | 107.20M | 114.86M | Total Debt |
| 3.10M | 15.84M | 16.09M | 7.86M | 1.58M | 3.10M | Net Debt |
| -1.02M | -214.00K | -10.43M | -7.40M | -12.47M | -1.02M | Total Liabilities |
| 26.11M | 490.24M | 462.78M | 197.04M | 48.13M | 26.11M | Stockholders Equity |
| 81.16M | 542.49M | 552.79M | 564.28M | 57.31M | 81.16M |
| Cash Flow | Free Cash Flow | ||||
| 120.03M | 141.71M | 74.34M | 105.72M | 52.03M | 44.25M | Operating Cash Flow |
| 136.39M | 156.72M | 81.05M | 107.56M | 52.70M | 44.47M | Investing Cash Flow |
| 20.44M | 62.17M | -189.35M | -284.23M | 23.51M | 11.25M | Financing Cash Flow |
| -148.48M | -229.63M | 118.55M | 177.89M | -66.24M | -53.77M |
Patria Investments Technical Analysis
Negative
11.06
Price Trends
11.56
Negative
11.66
Negative
11.62
Negative
Market Momentum
-0.21
Positive
40.88
Neutral
41.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAX, the sentiment is Negative. The current price of 11.06 is below the 20-day moving average (MA) of 11.62, below the 50-day MA of 11.56, and below the 200-day MA of 11.62, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 41.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAX.
Patria Investments Risk Analysis
Patria Investments disclosed 92 risk factors in its most recent earnings report. Patria Investments reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Patria Investments Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.70B | 25.40 | 12.86% | 5.68% | 4.48% | -27.43% | |
73 Outperform | $74.40B | 18.20 | 28.29% | 1.42% | -20.40% | -13.30% | |
68 Neutral | $14.83B | 14.81 | 18.90% | 3.41% | 62.87% | ― | |
67 Neutral | $99.58B | 33.01 | 13.23% | 0.62% | 42.19% | -18.20% | |
67 Neutral | $45.11B | 68.20 | 15.93% | 2.60% | 6.12% | -15.84% | |
65 Neutral | $168.35B | 38.48 | 36.95% | 2.86% | 21.25% | 97.42% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% |
* Financial Sector Average
Performance Comparison
PAX
Patria Investments
11.06
-2.98
-21.23%
APO
Apollo Global Management
134.92
26.46
24.40%
KKR
KKR & Co
114.37
16.97
17.42%
BX
Blackstone Group
140.54
17.70
14.41%
CG
Carlyle Group
42.03
-2.95
-6.56%
ARES
Ares Management
145.93
14.58
11.10%
Patria Investments Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -6.59% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong fundraising results, growth in fee related earnings, and successful diversification of the business. However, there were challenges such as a decline in net accrued performance fees and increased operating expenses. Overall, the positive achievements outweigh the negative aspects, indicating a robust position going into 2025.Highlights
Exceeded Fundraising Target
Raised $5.5 billion in 2024, surpassing the $5 billion target. This includes $300 million raised in the advisory business.
Fee Related Earnings Growth
Achieved 2024 fee related earnings target of $170 million, up 15% from 2023, with per share earnings of $1.12, up 13%.
Strong Performance Related Earnings
Generated over $41 million in performance related earnings from the sale of the Chilean project Aguas Pacifico.
Increase in Fee Earning Assets Under Management
Earning AUM of $33 billion rose 38% year-over-year despite a 3% sequential decline due to dollar appreciation.
Successful Diversification and Resilience
Significant progress in diversifying the platform with 70% of 2024 fundraising from local investors investing in local products.
Lowlights
Decline in Net Accrued Performance Fees
Net accrued performance fee balance of $319 million declined 30%, impacted by dollar appreciation and lower marks on publicly traded holdings.
Public Equities Outflow
Continued outflow pressure from public equities, affecting net inflows despite positive performance in other segments.
Increased Operating Expenses
Operating expenses increased due to acquisitions, salary increases, and inflation, impacting overall financials.
Company Guidance
During Patria's fourth quarter and full year 2024 earnings call, the company provided several key metrics and forward-looking guidance. Patria exceeded its full-year fundraising target by raising $5.5 billion, surpassing the goal of $5 billion, with $5.2 billion contributing to their asset base. They achieved their 2024 fee-related earnings (FRE) target of $170 million, or $1.12 per share, marking a 15% increase from 2023. For the fourth quarter, FRE reached $55 million, up 35% from the previous quarter. Heading into 2025, Patria targets full-year FRE of $200 million to $225 million, or $1.27 to $1.43 per share. They also reported $41 million in performance-related earnings, primarily from the sale of their Chilean decentralization project. The firm anticipates cumulative performance-related earnings of $120 million to $140 million through 2027. Additionally, Patria's fee-earning assets under management (AUM) rose 38% year-over-year to $33 billion, though it declined 3% sequentially due to dollar appreciation. They aim to reach a fundraising target of $6 billion for 2025, with confidence in achieving their FRE and performance targets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.