Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.MGA, PCG, PAX, PAGS and FSUN are screened as bargain stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score.Investors are typically fixated on the price-to-earnings (P/E) strategy, while seeking attractively priced stocks. Simple and easy to compute, it remains the most widely used valuation metric in the investm ...

Core Viewpoint - Patria Investments (PAX) has experienced a significant downtrend, with an 18.9% decline over the past four weeks, but is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PAX's current RSI reading is 19.72, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound as the stock seeks to return to its equilibrium [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding PAX, with earnings estimates for the current year being raised by 2.6% over the last 30 days, which often correlates with price appreciation in the near term [7]. - PAX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Viewpoint - Patria Investments (PAX) has experienced a significant decline of 15.5% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal supported by analyst consensus for better-than-expected earnings [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 typically indicating this condition [2]. - PAX's current RSI reading is 20.75, suggesting that the heavy selling pressure may be exhausting, and a trend reversal could be imminent [5]. - RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling [3]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for PAX by 2.6% over the last 30 days, indicating a positive outlook for the company's earnings [7]. - PAX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

Core Viewpoint - Patria Investments (PAX) is experiencing significant selling pressure, with a 10.3% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better-than-expected earnings [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PAX's current RSI reading is 23.32, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential reversal in the stock's trend [5]. Group 2: Fundamental Analysis - Analysts covering PAX have shown strong consensus in raising earnings estimates, with a 2.6% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - PAX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Patria Investments (PAX) is recommended as a cutting-edge growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 8.4%, but projected EPS growth for this year is expected to be 24.8%, significantly higher than the industry average of 9.5% [5] Group 2: Key Growth Metrics - The asset utilization ratio for Patria Investments is 0.28, indicating that the company generates $0.28 in sales for every dollar in assets, outperforming the industry average of 0.23 [7] - Sales growth for Patria Investments is projected at 14.7% this year, compared to the industry average of 6.8% [7] Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Patria Investments have been revised upward, with the Zacks Consensus Estimate increasing by 2.6% over the past month [8] Group 4: Investment Positioning - Patria Investments has earned a Growth Score of B and holds a Zacks Rank 2 due to positive earnings estimate revisions, positioning the company well for potential outperformance [10]

Core Thesis - A bearish thesis on Patria Investments Limited (PAX) highlights significant operational and financial concerns, suggesting the company may be overstating performance and masking losses [1][2][8] Financial Performance - As of February 9th, PAX's share price was $14.57, with trailing and forward P/E ratios of 20.91 and 8.14 respectively [1] - The firm has approximately USD 50 billion in assets under management (AUM) [2] Investment Concerns - Key holdings are distressed and marked at extreme premiums compared to listed peers, including a pharmaceutical distributor valued at 15x EV/EBITDA despite bonds trading near 50 cents on the dollar [3] - Other major investments include a loss-making hospital chain and a struggling renewables platform, marked at multiples significantly above market norms [3] Financial Engineering - Patria appears to sustain performance fees through circular internal transactions, asset shuffling, and questionable exits, such as a water desalination plant moved between its own funds [4] - Fundraising has relied on prepayments to limited partners (LPs) and large anchor commitments from affiliated entities, masking weak third-party demand [4] Governance and Management Issues - Governance concerns are elevated, including a CFO resignation, unexplained auditor change, high employee turnover, and the exit of Blackstone's 40% stake, which removed prior external validation [5] Debt and Dividend Sustainability - The firm's reliance on debt, deferred payments, and synthetic earnings to support AUM growth and share buybacks raises risks regarding dividend sustainability, especially in a high-interest Brazilian macro environment [6] - PAX's valuation appears stretched, with a 3.5% yield offering limited upside relative to the structural and operational risks faced by investors [6]

Core Thesis - A bearish thesis on Patria Investments Limited (PAX) highlights significant operational and financial concerns, suggesting the company may be overstating performance and masking losses [1][2][8] Financial Performance - As of February 9th, PAX's share price was $14.57, with trailing and forward P/E ratios of 20.91 and 8.14 respectively [1] - The firm has approximately USD 50 billion in assets under management (AUM) [2] Investment Concerns - Key holdings are distressed, with a pharmaceutical distributor valued at 15x EV/EBITDA despite bonds trading near 50 cents on the dollar, and other investments like a loss-making hospital chain marked at multiples above market norms [3] - Many positions are supported by off-balance-sheet loans and fund-level guarantees, which delay loss recognition and increase limited partner (LP) exposure [3] Governance and Operational Risks - Patria appears to sustain performance fees through circular internal transactions and questionable exits, raising concerns about governance [4] - The firm has experienced a CFO resignation, an unexplained auditor change, high employee turnover, and the exit of Blackstone's 40% stake, which removed prior external validation [5] Financial Engineering and Sustainability - The reliance on debt, deferred payments, and synthetic earnings to support AUM growth and share buybacks raises risks regarding dividend sustainability, especially in a high-interest Brazilian macro environment [6] - PAX's valuation appears stretched, with a 3.5% yield offering limited upside relative to the structural and operational risks faced by investors [6]

Core Viewpoint - Patria Investments (PAX) has experienced a significant downtrend, with a 19.4% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - PAX's RSI reading is currently at 30, suggesting that the heavy selling pressure may be exhausting itself, indicating a possible reversal in the stock's trend [5]. Group 2: Fundamental Analysis - Analysts covering PAX have shown strong consensus in raising earnings estimates, with a 2.6% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - PAX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Group 1 - The financial sector has identified oversold stocks, presenting an opportunity to invest in undervalued companies [1] - Dlocal Ltd (NASDAQ:DLO) is highlighted as an oversold stock with an RSI value of 29.5, indicating potential for recovery [2] - Dlocal's stock price has decreased approximately 10% over the past five days, reaching a 52-week low of $7.61 [2] Group 2 - Dlocal's shares closed at $11.85 after a 1% decline on Tuesday [2] - The company is set to release its fourth fiscal quarter financial results on March 18, after market close [2] - Dlocal has an Edge Stock Rating with a momentum score of 13.12 and a value score of 54.30 [2]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Patria Investments Limited and its officers or directors [1] Group 1: Investigation Details - Pomerantz LLP is representing investors of Patria Investments Limited and is urging them to contact the firm for further information [1] - The investigation is focused on whether Patria has engaged in securities fraud or other unlawful business practices [1] Group 2: Allegations and Market Reaction - On January 26, 2026, Snowcap Research published a report claiming that Patria may be overstating its performance and concealing losses in its private equity and infrastructure funds [3] - Following the release of this report, Patria's stock price decreased by $0.78 per share, representing a 4.55% decline, closing at $16.37 per share on the same day [3]