PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - NYSE:PAGS - KYG687071012 - Common Stock
9.54 USD
+0.06 (+0.63%)
9.54 USD
0 (0%)
PAGS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. PAGS has only an average score on both its financial health and profitability. PAGS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
PAGS had positive earnings in the past year.
In the past year PAGS had a positive cash flow from operations.
PAGS had positive earnings in each of the past 5 years.
Of the past 5 years PAGS 4 years had a positive operating cash flow.
1.2 Ratios
PAGS has a Return On Assets of 3.08%. This is in the better half of the industry: PAGS outperforms 68.32% of its industry peers.
PAGS has a better Return On Equity (15.03%) than 74.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.95%, PAGS belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PAGS is significantly above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 15.03% | ||
| ROIC | 19.95% |
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 (11.04%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PAGS has declined.
PAGS has a better Operating Margin (36.35%) than 75.25% of its industry peers.
PAGS's Operating Margin has been stable in the last couple of years.
The Gross Margin of PAGS (50.58%) is better than 66.34% 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 | 36.35% | ||
| PM (TTM) | 11.04% | ||
| GM | 50.58% |
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.
Compared to 1 year ago, PAGS has about the same amount of shares outstanding.
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 1.40. This is a bad value and indicates that PAGS is not financially healthy and even has some risk of bankruptcy.
PAGS's Altman-Z score of 1.40 is fine compared to the rest of the industry. PAGS outperforms 67.33% of its industry peers.
PAGS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
PAGS has a better Debt to Equity ratio (0.24) than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC2.54
WACC7.84%
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 65.35% of its industry peers.
A Quick Ratio of 1.42 indicates that PAGS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, PAGS is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
| 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 18.73%, 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 15.19% in the last year.
The Revenue has been growing by 26.94% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.73%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.9%
Revenue 1Y (TTM)15.19%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%11%
3.2 Future
The Earnings Per Share is expected to grow by 8.49% 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 2.57% on average per year.
EPS Next Y10.37%
EPS Next 2Y10.69%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue Next Year13.91%
Revenue Next 2Y9.91%
Revenue Next 3Y5.55%
Revenue Next 5Y2.57%
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 6.86, the valuation of PAGS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 89.11% of the companies listed 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.
PAGS is valuated cheaply with a Price/Forward Earnings ratio of 5.92.
Based on the Price/Forward Earnings ratio, PAGS is valued cheaper than 85.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PAGS to the average of the S&P500 Index (22.73), we can say PAGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAGS is valued cheaper than 99.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.46 |
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.
PEG (NY)0.66
PEG (5Y)0.71
EPS Next 2Y10.69%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, PAGS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.86, PAGS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, PAGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 2Y10.69%
EPS Next 3Y8.49%
9.54
+0.06 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners66.64%
Inst Owner Change-8.4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.92B
Analysts75.79
Price Target11.17 (17.09%)
Short Float %12.43%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.43%
Min EPS beat(2)0.87%
Max EPS beat(2)3.98%
EPS beat(4)4
Avg EPS beat(4)5.11%
Min EPS beat(4)0.87%
Max EPS beat(4)11.5%
EPS beat(8)8
Avg EPS beat(8)4.99%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)11
Avg EPS beat(16)2.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-2.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)1.52%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)4
Avg Revenue beat(12)-1%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)-0.41%
PT rev (3m)2.82%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 5.92 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.28 | ||
| P/B | 1.08 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 1.46 |
EPS(TTM)1.39
EY14.57%
EPS(NY)1.61
Fwd EY16.89%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)1.31
OCFY13.73%
SpS12.03
BVpS8.84
TBVpS6.99
PEG (NY)0.66
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 15.03% | ||
| ROCE | 26.27% | ||
| ROIC | 19.95% | ||
| ROICexc | 21.02% | ||
| ROICexgc | 23.46% | ||
| OM | 36.35% | ||
| PM (TTM) | 11.04% | ||
| GM | 50.58% | ||
| 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 | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 133.2% | ||
| Cap/Sales | 11.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.4 |
F-Score7
WACC7.84%
ROIC/WACC2.54
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)18.73%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.9%
EPS Next Y10.37%
EPS Next 2Y10.69%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue 1Y (TTM)15.19%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%11%
Revenue Next Year13.91%
Revenue Next 2Y9.91%
Revenue Next 3Y5.55%
Revenue Next 5Y2.57%
EBIT growth 1Y21.19%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year23.86%
EBIT Next 3Y19.65%
EBIT Next 5YN/A
FCF growth 1Y-106.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-44.47%
OCF growth 3YN/A
OCF growth 5YN/A