PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAGS - KYG687071012 - Common Stock
9.77 USD
+0.02 (+0.21%)
9.86 USD
+0.09 (+0.92%)
We assign a fundamental rating of 6 out of 10 to PAGS. PAGS was compared to 99 industry peers in the Financial Services industry. PAGS has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on PAGS. These ratings could make PAGS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year PAGS was profitable.
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
Looking at the Return On Assets, with a value of 3.06%, PAGS is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
PAGS has a better Return On Equity (14.88%) than 76.77% of its industry peers.
PAGS has a better Return On Invested Capital (21.73%) than 94.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
With a Profit Margin value of 11.01%, PAGS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
PAGS's Profit Margin has declined in the last couple of years.
PAGS has a Operating Margin of 38.12%. This is in the better half of the industry: PAGS outperforms 78.79% 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's Gross Margin of 51.55% is fine compared to the rest of the industry. PAGS outperforms 70.71% 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.
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
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 66.67% 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.
PAGS has a Debt to FCF ratio of 0.88. This is amongst the best in the industry. PAGS outperforms 81.82% 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 68.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 1.42 |
ROIC/WACC3.21
WACC6.76%
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 better Current ratio (1.42) than 66.67% of its industry peers.
A Quick Ratio of 1.42 indicates that PAGS should not have too much problems paying its short term obligations.
PAGS has a Quick ratio of 1.42. This is in the better half of the industry: PAGS outperforms 67.68% 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.
PAGS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.65% yearly.
The Revenue has grown by 11.57% in the past year. This is quite good.
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 7.08% on average per year.
EPS Next Y10.47%
EPS Next 2Y10.3%
EPS Next 3Y9.22%
EPS Next 5Y10.73%
Revenue Next Year11.58%
Revenue Next 2Y8.87%
Revenue Next 3Y7.66%
Revenue Next 5Y7.08%
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.
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
With a Price/Earnings ratio of 7.08, the valuation of PAGS can be described as very cheap.
85.86% of the companies in the same industry are more expensive than PAGS, based on the Price/Earnings ratio.
PAGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
PAGS is valuated cheaply with a Price/Forward Earnings ratio of 6.24.
Based on the Price/Forward Earnings ratio, PAGS is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, PAGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
PAGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PAGS is cheaper than 97.98% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 91.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 1.43 |
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)0.68
PEG (5Y)0.73
EPS Next 2Y10.3%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
PAGS has a Yearly Dividend Yield of 1.47%.
Compared to an average industry Dividend Yield of 2.43, PAGS pays a bit more dividend than its industry peers.
PAGS's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 2Y10.3%
EPS Next 3Y9.22%
9.77
+0.02 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70.81%
Inst Owner Change2%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.99B
Revenue(TTM)20.13B
Net Income(TTM)2.22B
Analysts76.84
Price TargetN/A
Short Float %10.51%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.54%
Min EPS beat(2)-0.91%
Max EPS beat(2)3.98%
EPS beat(4)3
Avg EPS beat(4)3.86%
Min EPS beat(4)-0.91%
Max EPS beat(4)11.5%
EPS beat(8)7
Avg EPS beat(8)4.83%
EPS beat(12)9
Avg EPS beat(12)3.32%
EPS beat(16)10
Avg EPS beat(16)1.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-6.36%
Max Revenue beat(2)-2.24%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)-0.16%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)4
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.47%
PT rev (1m)1.35%
PT rev (3m)6.31%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.24 | ||
| P/S | 0.82 | ||
| P/FCF | 5.88 | ||
| P/OCF | 3.28 | ||
| P/B | 1.11 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 1.43 |
EPS(TTM)1.38
EY14.12%
EPS(NY)1.56
Fwd EY16.01%
FCF(TTM)1.66
FCFY17%
OCF(TTM)2.98
OCFY30.53%
SpS11.93
BVpS8.82
TBVpS7
PEG (NY)0.68
PEG (5Y)0.73
Graham Number16.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 14.88% | ||
| ROCE | 27.62% | ||
| ROIC | 21.73% | ||
| ROICexc | 23.17% | ||
| ROICexgc | 25.99% | ||
| OM | 38.12% | ||
| PM (TTM) | 11.01% | ||
| GM | 51.55% | ||
| FCFM | 13.93% |
ROA(3y)3.07%
ROA(5y)3.75%
ROE(3y)13.21%
ROE(5y)12.92%
ROIC(3y)22.59%
ROIC(5y)19.48%
ROICexc(3y)30.91%
ROICexc(5y)26.15%
ROICexgc(3y)37.53%
ROICexgc(5y)31.44%
ROCE(3y)27.45%
ROCE(5y)23.69%
ROICexgc growth 3Y-6.67%
ROICexgc growth 5Y-10.61%
ROICexc growth 3Y-4.13%
ROICexc growth 5Y-10.35%
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%
F-Score8
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 125.73% | ||
| Cap/Sales | 11.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.28% | ||
| Profit Quality | 126.54% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.42 |
F-Score8
WACC6.76%
ROIC/WACC3.21
Cap/Depr(3y)160.19%
Cap/Depr(5y)250.47%
Cap/Sales(3y)12.91%
Cap/Sales(5y)17.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.69%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%8.99%
EPS Next Y10.47%
EPS Next 2Y10.3%
EPS Next 3Y9.22%
EPS Next 5Y10.73%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%5.67%
Revenue Next Year11.58%
Revenue Next 2Y8.87%
Revenue Next 3Y7.66%
Revenue Next 5Y7.08%
EBIT growth 1Y24.4%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year23.83%
EBIT Next 3Y19.53%
EBIT Next 5YN/A
FCF growth 1Y43.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.66%
OCF growth 3YN/A
OCF growth 5YN/A
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.
What is the valuation status for PAGS stock?
ChartMill assigns a valuation rating of 9 / 10 to PAGSEGURO DIGITAL LTD-CL A (PAGS). This can be considered as Undervalued.
How profitable is PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
PAGSEGURO DIGITAL LTD-CL A (PAGS) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
The Price/Earnings (PE) ratio for PAGSEGURO DIGITAL LTD-CL A (PAGS) is 7.08 and the Price/Book (PB) ratio is 1.11.
What is the expected EPS growth for PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
The Earnings per Share (EPS) of PAGSEGURO DIGITAL LTD-CL A (PAGS) is expected to grow by 10.47% in the next year.