PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAGS - KYG687071012 - Common Stock
10.98 USD
+0.05 (+0.46%)
11 USD
+0.02 (+0.18%)
PAGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. Both the profitability and the financial health of PAGS get a neutral evaluation. Nothing too spectacular is happening here. PAGS may be a bit undervalued, certainly considering the very reasonable score on growth This makes PAGS very considerable for value investing!
1. Profitability
1.1 Basic Checks
- PAGS had positive earnings in the past year.
- In the past year PAGS had a positive cash flow from operations.
- In the past 5 years PAGS has always been profitable.
- PAGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- PAGS has a Return On Assets of 3.06%. This is in the better half of the industry: PAGS outperforms 69.07% of its industry peers.
- Looking at the Return On Equity, with a value of 14.88%, PAGS is in the better half of the industry, outperforming 76.29% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 21.73%, PAGS belongs to the top of the industry, outperforming 94.85% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PAGS is significantly above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 14.88% | ||
| ROIC | 21.73% |
ROA(3y)3.07%
ROA(5y)3.75%
ROE(3y)13.21%
ROE(5y)12.92%
ROIC(3y)22.59%
ROIC(5y)19.48%
1.3 Margins
- The Profit Margin of PAGS (11.01%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of PAGS has declined.
- PAGS's Operating Margin of 38.12% is fine compared to the rest of the industry. PAGS outperforms 78.35% of its industry peers.
- In the last couple of years the Operating Margin of PAGS has remained more or less at the same level.
- PAGS has a better Gross Margin (51.55%) than 69.07% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.12% | ||
| PM (TTM) | 11.01% | ||
| GM | 51.55% |
OM growth 3Y16.32%
OM growth 5Y-0.01%
PM growth 3Y0.28%
PM growth 5Y-14.01%
GM growth 3Y3.28%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
- PAGS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, PAGS has about the same amount of shares outstanding.
- The number of shares outstanding for PAGS remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, PAGS has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.43, we must say that PAGS is in the distress zone and has some risk of bankruptcy.
- PAGS has a Altman-Z score of 1.43. This is in the better half of the industry: PAGS outperforms 64.95% of its industry peers.
- PAGS has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.88, PAGS belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
- A Debt/Equity ratio of 0.17 indicates that PAGS is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.17, PAGS is in the better half of the industry, outperforming 68.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 1.43 |
ROIC/WACC2.7
WACC8.06%
2.3 Liquidity
- PAGS has a Current Ratio of 1.42. 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 1.42. This is in the better half of the industry: PAGS outperforms 67.01% of its industry peers.
- PAGS has a Quick Ratio of 1.42. This is a normal value and indicates that PAGS is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.42, PAGS is doing good in the industry, outperforming 68.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
- PAGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.69%, which is quite good.
- PAGS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.65% yearly.
- Looking at the last year, PAGS shows a quite strong growth in Revenue. The Revenue has grown by 11.57% in the last year.
- PAGS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.94% yearly.
EPS 1Y (TTM)13.69%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%8.99%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%5.67%
3.2 Future
- The Earnings Per Share is expected to grow by 10.73% on average over the next years. This is quite good.
- Based on estimates for the next years, PAGS will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.
EPS Next Y10.01%
EPS Next 2Y10.22%
EPS Next 3Y9.3%
EPS Next 5Y10.73%
Revenue Next Year10.08%
Revenue Next 2Y7.71%
Revenue Next 3Y6.35%
Revenue Next 5Y7.15%
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 stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.63, which indicates a rather cheap valuation of PAGS.
- Compared to the rest of the industry, the Price/Earnings ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 82.47% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PAGS is valued rather cheaply.
- A Price/Forward Earnings ratio of 6.77 indicates a rather cheap valuation of PAGS.
- Based on the Price/Forward Earnings ratio, PAGS is valued cheaper than 81.44% of the companies in the same industry.
- PAGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PAGS is valued cheaply inside the industry as 97.94% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, PAGS is valued cheaply inside the industry as 89.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 1.57 |
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.
PEG (NY)0.76
PEG (5Y)0.79
EPS Next 2Y10.22%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.28%, PAGS has a reasonable but not impressive dividend return.
- PAGS's Dividend Yield is comparable with the industry average which is at 2.32.
- Compared to the average S&P500 Dividend Yield of 1.81, PAGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
- PAGS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.22%
EPS Next 3Y9.3%
PAGSEGURO DIGITAL LTD-CL A / PAGS FAQ
What is the ChartMill fundamental rating of PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PAGS.
Can you provide the valuation status for PAGSEGURO DIGITAL LTD-CL A?
ChartMill assigns a valuation rating of 9 / 10 to PAGSEGURO DIGITAL LTD-CL A (PAGS). This can be considered as Undervalued.
What is the profitability of PAGS stock?
PAGSEGURO DIGITAL LTD-CL A (PAGS) has a profitability rating of 6 / 10.
How financially healthy is PAGSEGURO DIGITAL LTD-CL A?
The financial health rating of PAGSEGURO DIGITAL LTD-CL A (PAGS) is 6 / 10.
Can you provide the expected EPS growth for PAGS stock?
The Earnings per Share (EPS) of PAGSEGURO DIGITAL LTD-CL A (PAGS) is expected to grow by 10.01% in the next year.