PAGSEGURO DIGITAL LTD-CL A (PAGS)
KYG687071012 - Common Stock
PAGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. PAGS scores excellent on profitability, but there are some minor concerns on its financial health. PAGS is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
In the past year PAGS was profitable.
PAGS had a negative operating cash flow in the past year.
Each year in the past 5 years PAGS has been profitable.
Each year in the past 5 years PAGS had a positive operating cash flow.
1.2 Ratios
PAGS has a Return On Assets of 2.98%. This is in the better half of the industry: PAGS outperforms 63.64% of its industry peers.
Looking at the Return On Equity, with a value of 13.88%, PAGS is in the better half of the industry, outperforming 65.66% of the companies in the same industry.
PAGS's Return On Invested Capital of 16.65% is amongst the best of the industry. PAGS outperforms 93.94% of its industry peers.
PAGS had an Average Return On Invested Capital over the past 3 years of 21.81%. This is significantly above the industry average of 7.84%.
The last Return On Invested Capital (16.65%) for PAGS is well below the 3 year average (21.81%), which needs to be investigated, but indicates that PAGS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 13.88% | ||
| ROIC | 16.65% |
ROA(3y)3.36%
ROA(5y)5.05%
ROE(3y)12.1%
ROE(5y)13.45%
ROIC(3y)21.81%
ROIC(5y)19.75%
1.3 Margins
PAGS has a Profit Margin (11.12%) which 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 34.19% is fine compared to the rest of the industry. PAGS outperforms 78.79% of its industry peers.
PAGS's Operating Margin has improved in the last couple of years.
The Gross Margin of PAGS (48.99%) is better than 67.68% 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 | 34.19% | ||
| PM (TTM) | 11.12% | ||
| GM | 48.99% |
OM growth 3Y9.09%
OM growth 5Y4.1%
PM growth 3Y-18.22%
PM growth 5Y-13.14%
GM growth 3Y3.16%
GM growth 5Y-0.61%
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.
Compared to 1 year ago, PAGS has about the same amount of shares outstanding.
PAGS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAGS has a worse debt to assets ratio.
2.2 Solvency
PAGS has an Altman-Z score of 1.40. 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 (1.40) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that PAGS is not too dependend on debt financing.
The Debt to Equity ratio of PAGS (0.21) is better than 64.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC1.83
WACC9.08%
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.
PAGS has a Current ratio of 1.52. This is in the better half of the industry: PAGS outperforms 64.65% 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 65.66% 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 32.54% over the past year.
PAGS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.58% yearly.
Looking at the last year, PAGS shows a quite strong growth in Revenue. The Revenue has grown by 15.92% in the last year.
PAGS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.76% yearly.
EPS 1Y (TTM)32.54%
EPS 3Y7.95%
EPS 5Y9.58%
EPS Q2Q%30.88%
Revenue 1Y (TTM)15.92%
Revenue growth 3Y32.77%
Revenue growth 5Y29.76%
Sales Q2Q%20.01%
3.2 Future
Based on estimates for the next years, PAGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.36% on average per year.
The Revenue is expected to grow by 6.56% on average over the next years.
EPS Next Y26.3%
EPS Next 2Y17.19%
EPS Next 3Y13.64%
EPS Next 5Y16.36%
Revenue Next Year18.32%
Revenue Next 2Y13.46%
Revenue Next 3Y12.29%
Revenue Next 5Y6.56%
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 accelerating.
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 5.95, the valuation of PAGS can be described as very cheap.
92.93% of the companies in the same industry are more expensive than PAGS, based on the Price/Earnings ratio.
PAGS is valuated cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
PAGS is valuated cheaply with a Price/Forward Earnings ratio of 5.34.
Based on the Price/Forward Earnings ratio, PAGS is valued cheaply inside the industry as 91.92% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PAGS to the average of the S&P500 Index (22.56), we can say PAGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
PAGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PAGS is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 0.21 |
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.
The decent profitability rating of PAGS may justify a higher PE ratio.
A more expensive valuation may be justified as PAGS's earnings are expected to grow with 13.64% in the coming years.
PEG (NY)0.23
PEG (5Y)0.62
EPS Next 2Y17.19%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
No dividends for PAGS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAGSEGURO DIGITAL LTD-CL A
NYSE:PAGS (12/20/2024, 12:52:04 PM)
6.37
+0.11 (+1.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners53.08%
Inst Owner Change-3.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.01B
Analysts78.1
Price Target13.74 (115.7%)
Short Float %10.8%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)2.2%
Max EPS beat(2)3.47%
EPS beat(4)4
Avg EPS beat(4)5.5%
Min EPS beat(4)2.2%
Max EPS beat(4)8.82%
EPS beat(8)6
Avg EPS beat(8)2.89%
EPS beat(12)7
Avg EPS beat(12)1.2%
EPS beat(16)9
Avg EPS beat(16)0.12%
Revenue beat(2)2
Avg Revenue beat(2)3.43%
Min Revenue beat(2)1.52%
Max Revenue beat(2)5.33%
Revenue beat(4)4
Avg Revenue beat(4)3%
Min Revenue beat(4)1.28%
Max Revenue beat(4)5.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)-15.28%
PT rev (3m)-19.59%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)1.12%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)9.68%
Revenue NQ rev (3m)9.68%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | 5.34 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.88 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 0.21 |
EPS(TTM)1.07
EY16.8%
EPS(NY)1.19
Fwd EY18.73%
FCF(TTM)-1.49
FCFYN/A
OCF(TTM)-0.33
OCFYN/A
SpS9.09
BVpS7.27
TBVpS5.85
PEG (NY)0.23
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 13.88% | ||
| ROCE | 21.99% | ||
| ROIC | 16.65% | ||
| ROICexc | 20.28% | ||
| ROICexgc | 22.82% | ||
| OM | 34.19% | ||
| PM (TTM) | 11.12% | ||
| GM | 48.99% | ||
| FCFM | N/A |
ROA(3y)3.36%
ROA(5y)5.05%
ROE(3y)12.1%
ROE(5y)13.45%
ROIC(3y)21.81%
ROIC(5y)19.75%
ROICexc(3y)31%
ROICexc(5y)27.95%
ROICexgc(3y)38.12%
ROICexgc(5y)33.44%
ROCE(3y)26.61%
ROCE(5y)23.92%
ROICexcg growth 3Y23.76%
ROICexcg growth 5Y7.82%
ROICexc growth 3Y21.41%
ROICexc growth 5Y5.15%
OM growth 3Y9.09%
OM growth 5Y4.1%
PM growth 3Y-18.22%
PM growth 5Y-13.14%
GM growth 3Y3.16%
GM growth 5Y-0.61%
F-Score4
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 149.31% | ||
| Cap/Sales | 12.76% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.4 |
F-Score4
WACC9.08%
ROIC/WACC1.83
Cap/Depr(3y)187.85%
Cap/Depr(5y)329.57%
Cap/Sales(3y)14.39%
Cap/Sales(5y)17.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.54%
EPS 3Y7.95%
EPS 5Y9.58%
EPS Q2Q%30.88%
EPS Next Y26.3%
EPS Next 2Y17.19%
EPS Next 3Y13.64%
EPS Next 5Y16.36%
Revenue 1Y (TTM)15.92%
Revenue growth 3Y32.77%
Revenue growth 5Y29.76%
Sales Q2Q%20.01%
Revenue Next Year18.32%
Revenue Next 2Y13.46%
Revenue Next 3Y12.29%
Revenue Next 5Y6.56%
EBIT growth 1Y10.98%
EBIT growth 3Y44.83%
EBIT growth 5Y35.08%
EBIT Next Year29.55%
EBIT Next 3Y18.23%
EBIT Next 5Y24.6%
FCF growth 1Y-429.1%
FCF growth 3Y166.64%
FCF growth 5YN/A
OCF growth 1Y-137.73%
OCF growth 3Y22.94%
OCF growth 5YN/A