PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
NYSE:PAGS - New York Stock Exchange, Inc. - KYG687071012 - Common Stock - Currency: USD
Overall PAGS gets a fundamental rating of 6 out of 10. We evaluated PAGS against 100 industry peers in the Financial Services industry. PAGS has an excellent profitability rating, but there are some minor concerns on its financial health. PAGS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year PAGS was profitable.
In the past year PAGS has reported a negative cash flow from operations.
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
PAGS has a Return On Assets of 3.12%. This is in the better half of the industry: PAGS outperforms 65.00% of its industry peers.
PAGS has a Return On Equity of 14.45%. This is in the better half of the industry: PAGS outperforms 70.00% of its industry peers.
With an excellent Return On Invested Capital value of 17.14%, PAGS belongs to the best of the industry, outperforming 93.00% 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 11.84%.
The last Return On Invested Capital (17.14%) for PAGS is well below the 3 year average (22.59%), which needs to be investigated, but indicates that PAGS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 14.45% | ||
| ROIC | 17.14% |
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
Looking at the Profit Margin, with a value of 11.16%, PAGS is in line with its industry, outperforming 54.00% of the companies in the same industry.
PAGS's Profit Margin has declined in the last couple of years.
The Operating Margin of PAGS (35.09%) is better than 76.00% of its industry peers.
PAGS's Operating Margin has been stable in the last couple of years.
PAGS has a better Gross Margin (49.71%) than 68.00% 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 | 35.09% | ||
| PM (TTM) | 11.16% | ||
| GM | 49.71% |
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.
PAGS has about the same amout of shares outstanding than it did 1 year ago.
PAGS has about the same amout of shares outstanding than it did 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 1.48, 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 1.48, PAGS is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
PAGS has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.30, PAGS is doing good in the industry, outperforming 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC2.13
WACC8.06%
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.
The Current ratio of PAGS (1.52) is better than 68.00% of its industry peers.
A Quick Ratio of 1.52 indicates that PAGS should not have too much problems paying its short term obligations.
The Quick ratio of PAGS (1.52) is better than 69.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.39% over the past year.
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 17.26%.
The Revenue has been growing by 26.94% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.39%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.04%
Revenue 1Y (TTM)17.26%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%12.63%
3.2 Future
The Earnings Per Share is expected to grow by 9.41% on average over the next years. This is quite good.
PAGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y9.49%
EPS Next 2Y10.23%
EPS Next 3Y9.41%
EPS Next 5YN/A
Revenue Next Year14.93%
Revenue Next 2Y10.88%
Revenue Next 3Y7.02%
Revenue Next 5Y2.57%
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
A Price/Earnings ratio of 6.92 indicates a rather cheap valuation of PAGS.
PAGS's Price/Earnings ratio is rather cheap when compared to the industry. PAGS is cheaper than 86.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of PAGS to the average of the S&P500 Index (27.30), we can say PAGS is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.83, the valuation of PAGS can be described as very cheap.
Based on the Price/Forward Earnings ratio, PAGS is valued cheaper than 86.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PAGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.83 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than PAGS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.65 |
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)0.73
PEG (5Y)0.72
EPS Next 2Y10.23%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
PAGS has a Yearly Dividend Yield of 1.49%.
Compared to an average industry Dividend Yield of 5.00, PAGS pays a bit more dividend than its industry peers.
PAGS's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
DP0%
EPS Next 2Y10.23%
EPS Next 3Y9.41%
9.21
+0.04 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners69.44%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.04B
Analysts74.74
Price Target10.75 (16.72%)
Short Float %8.22%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.65%
Min EPS beat(2)0.87%
Max EPS beat(2)10.43%
EPS beat(4)4
Avg EPS beat(4)4.24%
Min EPS beat(4)0.87%
Max EPS beat(4)10.43%
EPS beat(8)7
Avg EPS beat(8)3.99%
EPS beat(12)9
Avg EPS beat(12)2.94%
EPS beat(16)10
Avg EPS beat(16)1.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)1.04%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)5.33%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)-2.46%
PT rev (3m)1.89%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)1.49%
EPS NY rev (1m)1.99%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.83 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.11 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 1.65 |
EPS(TTM)1.33
EY14.44%
EPS(NY)1.58
Fwd EY17.14%
FCF(TTM)-3.91
FCFYN/A
OCF(TTM)-2.57
OCFYN/A
SpS10.75
BVpS8.3
TBVpS6.63
PEG (NY)0.73
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 14.45% | ||
| ROCE | 23.03% | ||
| ROIC | 17.14% | ||
| ROICexc | 17.99% | ||
| ROICexgc | 19.84% | ||
| OM | 35.09% | ||
| PM (TTM) | 11.16% | ||
| GM | 49.71% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-6.67%
ROICexcg 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-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 144.5% | ||
| Cap/Sales | 12.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.48 |
F-Score7
WACC8.06%
ROIC/WACC2.13
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)23.39%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.04%
EPS Next Y9.49%
EPS Next 2Y10.23%
EPS Next 3Y9.41%
EPS Next 5YN/A
Revenue 1Y (TTM)17.26%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%12.63%
Revenue Next Year14.93%
Revenue Next 2Y10.88%
Revenue Next 3Y7.02%
Revenue Next 5Y2.57%
EBIT growth 1Y17.29%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year25.15%
EBIT Next 3Y19.66%
EBIT Next 5YN/A
FCF growth 1Y-491.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-226.45%
OCF growth 3YN/A
OCF growth 5YN/A