PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAGS - KYG687071012 - Common Stock
11.97 USD
+0.26 (+2.22%)
11.97 USD
0 (0%)
PAGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. PAGS has only an average score on both its financial health and profitability. PAGS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make PAGS a good candidate 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.
- Each year in the past 5 years PAGS has been profitable.
- Of the past 5 years PAGS 4 years had a positive operating cash flow.
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.
- With a decent Return On Equity value of 14.88%, PAGS is doing good in the industry, outperforming 76.29% of the companies in the same industry.
- 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's Profit Margin of 11.01% is in line compared to the rest of the industry. PAGS outperforms 54.64% of its industry peers.
- In the last couple of years the Profit Margin of PAGS has declined.
- The Operating Margin of PAGS (38.12%) is better than 79.38% of its industry peers.
- In the last couple of years the Operating Margin of PAGS has remained more or less at the same level.
- With a decent Gross Margin value of 51.55%, PAGS is doing good in the industry, outperforming 69.07% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PAGS is creating value.
- The number of shares outstanding for PAGS remains at a similar level compared to 1 year ago.
- PAGS has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for PAGS is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.44, we must say that PAGS is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.44, PAGS is in the better half of the industry, outperforming 64.95% 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.
- The Debt to FCF ratio of PAGS (0.88) is better than 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.
- With a decent Debt to Equity ratio value of 0.17, PAGS is doing good in 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 | 1.44 |
ROIC/WACC2.71
WACC8.03%
2.3 Liquidity
- A Current Ratio of 1.42 indicates that PAGS should not have too much problems paying its short term obligations.
- PAGS's Current ratio of 1.42 is fine compared to the rest 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 better Quick ratio (1.42) than 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.
- Looking at the last year, PAGS shows a quite strong growth in Revenue. The Revenue has grown by 11.57% in the last year.
- Measured over the past years, PAGS shows a very strong growth in Revenue. The Revenue has been growing by 26.94% on average per year.
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
- PAGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
- 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
- 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
- Based on the Price/Earnings ratio of 8.26, the valuation of PAGS can be described as reasonable.
- PAGS's Price/Earnings ratio is a bit cheaper when compared to the industry. PAGS is cheaper than 76.29% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PAGS to the average of the S&P500 Index (28.82), we can say PAGS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.29, the valuation of PAGS can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 80.41% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of PAGS to the average of the S&P500 Index (25.95), we can say PAGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 7.29 |
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 97.94% of the companies listed in the same industry.
- 89.69% of the companies in the same industry are more expensive than PAGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.86 | ||
| EV/EBITDA | 1.7 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of PAGS may justify a higher PE ratio.
PEG (NY)0.85
PEG (5Y)0.86
EPS Next 2Y10.22%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
- PAGS has a Yearly Dividend Yield of 1.28%.
- PAGS's Dividend Yield is a higher than the industry average which is at 2.09.
- PAGS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
- PAGS is new to the dividend game and has less than 3 years of track record.
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 8 / 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.