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PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis

NYSE:PAGS - New York Stock Exchange, Inc. - KYG687071012 - Common Stock - Currency: USD

8.05  -0.11 (-1.35%)

After market: 8.01 -0.04 (-0.5%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to PAGS. PAGS was compared to 101 industry peers in the Financial Services industry. PAGS has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: PAGS is growing strongly while it also seems undervalued.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

PAGS had positive earnings in the past year.
PAGS had a negative operating cash flow in the past year.
In the past 5 years PAGS has always been profitable.
In the past 5 years PAGS always reported a positive cash flow from operatings.
PAGS Yearly Net Income VS EBIT VS OCF VS FCFPAGS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B

1.2 Ratios

With a decent Return On Assets value of 2.98%, PAGS is doing good in the industry, outperforming 63.37% of the companies in the same industry.
PAGS's Return On Equity of 13.88% is fine compared to the rest of the industry. PAGS outperforms 66.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.65%, PAGS belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PAGS is significantly above the industry average of 7.75%.
The last Return On Invested Capital (16.65%) for PAGS is well below the 3 year average (21.81%), which needs to be investigated, but indicates that PAGS had better years and this may not be a problem.
Industry RankSector Rank
ROA 2.98%
ROE 13.88%
ROIC 16.65%
ROA(3y)3.36%
ROA(5y)5.05%
ROE(3y)12.1%
ROE(5y)13.45%
ROIC(3y)21.81%
ROIC(5y)19.75%
PAGS Yearly ROA, ROE, ROICPAGS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

1.3 Margins

PAGS has a Profit Margin (11.12%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PAGS has declined.
PAGS has a better Operating Margin (34.19%) than 79.21% of its industry peers.
In the last couple of years the Operating Margin of PAGS has grown nicely.
PAGS's Gross Margin of 48.99% is fine compared to the rest of the industry. PAGS outperforms 68.32% of its industry peers.
In the last couple of years the Gross Margin of PAGS has remained more or less at the same level.
Industry RankSector Rank
OM 34.19%
PM (TTM) 11.12%
GM 48.99%
OM growth 3Y9.09%
OM growth 5Y4.1%
PM growth 3Y-18.22%
PM growth 5Y-13.14%
GM growth 3Y3.16%
GM growth 5Y-0.61%
PAGS Yearly Profit, Operating, Gross MarginsPAGS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAGS is creating some value.
Compared to 1 year ago, PAGS has about the same amount of shares outstanding.
PAGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PAGS is higher compared to a year ago.
PAGS Yearly Shares OutstandingPAGS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
PAGS Yearly Total Debt VS Total AssetsPAGS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

PAGS has an Altman-Z score of 1.42. This is a bad value and indicates that PAGS is not financially healthy and even has some risk of bankruptcy.
PAGS has a better Altman-Z score (1.42) than 67.33% of its industry peers.
PAGS has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
PAGS has a Debt to Equity ratio of 0.21. This is in the better half of the industry: PAGS outperforms 66.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Altman-Z 1.42
ROIC/WACC1.05
WACC15.9%
PAGS Yearly LT Debt VS Equity VS FCFPAGS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B

2.3 Liquidity

PAGS has a Current Ratio of 1.52. This is a normal value and indicates that PAGS is financially healthy and should not expect problems in meeting its short term obligations.
PAGS has a Current ratio of 1.52. This is in the better half of the industry: PAGS outperforms 65.35% of its industry peers.
A Quick Ratio of 1.52 indicates that PAGS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.52, PAGS is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.52
PAGS Yearly Current Assets VS Current LiabilitesPAGS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

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7

3. Growth

3.1 Past

PAGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.54%, which is quite impressive.
The Earnings Per Share has been growing by 9.58% on average over the past years. This is quite good.
Looking at the last year, PAGS shows a quite strong growth in Revenue. The Revenue has grown by 15.92% in the last year.
Measured over the past years, PAGS shows a very strong growth in Revenue. The Revenue has been growing by 29.76% on average per year.
EPS 1Y (TTM)32.54%
EPS 3Y7.95%
EPS 5Y9.58%
EPS Q2Q%30.88%
Revenue 1Y (TTM)15.92%
Revenue growth 3Y32.77%
Revenue growth 5Y29.76%
Sales Q2Q%20.01%

3.2 Future

PAGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.36% yearly.
Based on estimates for the next years, PAGS will show a small growth in Revenue. The Revenue will grow by 5.91% on average per year.
EPS Next Y25.18%
EPS Next 2Y13.29%
EPS Next 3Y12.31%
EPS Next 5Y16.36%
Revenue Next Year18.32%
Revenue Next 2Y15.44%
Revenue Next 3Y12.05%
Revenue Next 5Y5.91%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PAGS Yearly Revenue VS EstimatesPAGS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
PAGS Yearly EPS VS EstimatesPAGS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.82 indicates a rather cheap valuation of PAGS.
Based on the Price/Earnings ratio, PAGS is valued cheaper than 88.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. PAGS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.55, which indicates a rather cheap valuation of PAGS.
89.11% of the companies in the same industry are more expensive than PAGS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PAGS to the average of the S&P500 Index (22.68), we can say PAGS is valued rather cheaply.
Industry RankSector Rank
PE 6.82
Fwd PE 6.55
PAGS Price Earnings VS Forward Price EarningsPAGS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 0.48
PAGS Per share dataPAGS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

PAGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PAGS has a very decent profitability rating, which may justify a higher PE ratio.
PAGS's earnings are expected to grow with 12.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.71
EPS Next 2Y13.29%
EPS Next 3Y12.31%

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0

5. Dividend

5.1 Amount

No dividends for PAGS!.
Industry RankSector Rank
Dividend Yield N/A

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PAGSEGURO DIGITAL LTD-CL A

NYSE:PAGS (2/21/2025, 8:04:00 PM)

After market: 8.01 -0.04 (-0.5%)

8.05

-0.11 (-1.35%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-21 2025-05-21/amc
Inst Owners83.84%
Inst Owner Change-7.99%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.51B
Analysts73.33
Price Target10.97 (36.27%)
Short Float %11.46%
Short Ratio4.62
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)2.2%
Max EPS beat(2)3.47%
EPS beat(4)4
Avg EPS beat(4)5.5%
Min EPS beat(4)2.2%
Max EPS beat(4)8.82%
EPS beat(8)6
Avg EPS beat(8)2.89%
EPS beat(12)7
Avg EPS beat(12)1.2%
EPS beat(16)9
Avg EPS beat(16)0.12%
Revenue beat(2)2
Avg Revenue beat(2)3.43%
Min Revenue beat(2)1.52%
Max Revenue beat(2)5.33%
Revenue beat(4)4
Avg Revenue beat(4)3%
Min Revenue beat(4)1.28%
Max Revenue beat(4)5.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)-10.14%
PT rev (3m)-31.93%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-3.59%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)10.41%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)1.7%
Valuation
Industry RankSector Rank
PE 6.82
Fwd PE 6.55
P/S 0.79
P/FCF N/A
P/OCF N/A
P/B 0.99
P/tB 1.23
EV/EBITDA 0.48
EPS(TTM)1.18
EY14.66%
EPS(NY)1.23
Fwd EY15.27%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)-0.37
OCFYN/A
SpS10.16
BVpS8.14
TBVpS6.54
PEG (NY)0.27
PEG (5Y)0.71
Profitability
Industry RankSector Rank
ROA 2.98%
ROE 13.88%
ROCE 21.99%
ROIC 16.65%
ROICexc 20.28%
ROICexgc 22.82%
OM 34.19%
PM (TTM) 11.12%
GM 48.99%
FCFM N/A
ROA(3y)3.36%
ROA(5y)5.05%
ROE(3y)12.1%
ROE(5y)13.45%
ROIC(3y)21.81%
ROIC(5y)19.75%
ROICexc(3y)31%
ROICexc(5y)27.95%
ROICexgc(3y)38.12%
ROICexgc(5y)33.44%
ROCE(3y)26.61%
ROCE(5y)23.92%
ROICexcg growth 3Y23.76%
ROICexcg growth 5Y7.82%
ROICexc growth 3Y21.41%
ROICexc growth 5Y5.15%
OM growth 3Y9.09%
OM growth 5Y4.1%
PM growth 3Y-18.22%
PM growth 5Y-13.14%
GM growth 3Y3.16%
GM growth 5Y-0.61%
F-Score4
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF N/A
Debt/EBITDA 0.39
Cap/Depr 149.31%
Cap/Sales 12.76%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.52
Quick Ratio 1.52
Altman-Z 1.42
F-Score4
WACC15.9%
ROIC/WACC1.05
Cap/Depr(3y)187.85%
Cap/Depr(5y)329.57%
Cap/Sales(3y)14.39%
Cap/Sales(5y)17.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.54%
EPS 3Y7.95%
EPS 5Y9.58%
EPS Q2Q%30.88%
EPS Next Y25.18%
EPS Next 2Y13.29%
EPS Next 3Y12.31%
EPS Next 5Y16.36%
Revenue 1Y (TTM)15.92%
Revenue growth 3Y32.77%
Revenue growth 5Y29.76%
Sales Q2Q%20.01%
Revenue Next Year18.32%
Revenue Next 2Y15.44%
Revenue Next 3Y12.05%
Revenue Next 5Y5.91%
EBIT growth 1Y10.98%
EBIT growth 3Y44.83%
EBIT growth 5Y35.08%
EBIT Next Year30.78%
EBIT Next 3Y17.67%
EBIT Next 5Y24.6%
FCF growth 1Y-429.1%
FCF growth 3Y166.64%
FCF growth 5YN/A
OCF growth 1Y-137.73%
OCF growth 3Y22.94%
OCF growth 5YN/A