PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAGS - KYG687071012 - Common Stock
11.5 USD
+0.17 (+1.5%)
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
- In the past year PAGS was profitable.
- PAGS had a positive operating cash flow in the past year.
- In the past 5 years PAGS has always been profitable.
- Of the past 5 years PAGS 4 years had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.06%, PAGS is doing good in the industry, outperforming 69.07% of the companies in the same industry.
- PAGS has a Return On Equity of 14.88%. This is in the better half of the industry: PAGS outperforms 76.29% of its industry peers.
- PAGS's Return On Invested Capital of 21.73% is amongst the best of the industry. PAGS outperforms 94.85% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PAGS is significantly above the industry average of 8.46%.
| 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
- PAGS has a Profit Margin (11.01%) which is in line with its industry peers.
- PAGS's Profit Margin has declined in the last couple of years.
- The Operating Margin of PAGS (38.12%) is better than 79.38% of its industry peers.
- PAGS's Operating Margin has been stable in the last couple of years.
- PAGS has a better Gross Margin (51.55%) than 69.07% of its industry peers.
- PAGS's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PAGS is creating value.
- PAGS has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for PAGS remains at a similar level compared to 5 years ago.
- PAGS has a worse debt/assets ratio than last year.
2.2 Solvency
- PAGS has an Altman-Z score of 1.44. This is a bad value and indicates that PAGS is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.44, PAGS is doing good in the industry, outperforming 63.92% of the companies in the same industry.
- 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.
- PAGS's Debt to FCF ratio of 0.88 is amongst the best of the industry. PAGS outperforms 81.44% of its industry peers.
- PAGS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- PAGS has a better Debt to Equity ratio (0.17) than 68.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 1.44 |
ROIC/WACC2.7
WACC8.04%
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.
- PAGS has a Quick ratio of 1.42. This is in the better half of the industry: PAGS outperforms 68.04% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 9.65% on average over the past years. This is quite good.
- PAGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.57%.
- 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 Y9.66%
EPS Next 2Y10.22%
EPS Next 3Y9.3%
EPS Next 5Y10.73%
Revenue Next Year10.17%
Revenue Next 2Y7.73%
Revenue Next 3Y6.36%
Revenue Next 5Y7.15%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.93 indicates a rather cheap valuation of PAGS.
- Based on the Price/Earnings ratio, PAGS is valued cheaper than 83.51% of the companies in the same industry.
- PAGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 7.05, which indicates a rather cheap valuation of PAGS.
- Based on the Price/Forward Earnings ratio, PAGS is valued cheaply inside the industry as 81.44% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PAGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
- PAGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PAGS is cheaper than 97.94% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PAGS is valued cheaper than 89.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.63 | ||
| EV/EBITDA | 1.63 |
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)0.82
PEG (5Y)0.82
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 a higher than the industry average which is at 2.09.
- Compared to the average S&P500 Dividend Yield of 1.82, 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 9.66% in the next year.