PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - NYSE:PAGS - KYG687071012 - Common Stock
8.96 USD
+0.21 (+2.4%)
8.96 USD
0 (0%)
PAGS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 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.
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
Looking at the Return On Assets, with a value of 3.08%, PAGS is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
PAGS has a Return On Equity of 15.03%. This is in the better half of the industry: PAGS outperforms 73.74% 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 93.94% 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 7.72%.
| 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's Profit Margin of 11.04% is in line compared to the rest of the industry. PAGS outperforms 52.53% of its industry peers.
PAGS's Profit Margin has declined in the last couple of years.
PAGS's Operating Margin of 36.35% is fine compared to the rest of the industry. PAGS outperforms 75.76% of its industry peers.
PAGS's Operating Margin has been stable in the last couple of years.
PAGS's Gross Margin of 50.58% is fine compared to the rest of the industry. PAGS outperforms 65.66% of its industry peers.
PAGS's Gross Margin has been stable in the last couple of years.
| 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
PAGS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
PAGS has about the same amout of shares outstanding than it did 1 year ago.
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 1.39. 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 (1.39) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that PAGS is not too dependend on debt financing.
The Debt to Equity ratio of PAGS (0.24) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC3.03
WACC6.59%
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.
With a decent Current ratio value of 1.42, PAGS is doing good in the industry, outperforming 64.65% of the companies in the same industry.
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's Quick ratio of 1.42 is fine compared to the rest of the industry. PAGS outperforms 65.66% 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 18.73%, which is quite good.
Measured over the past years, PAGS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.65% on average per year.
PAGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.19%.
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)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 8.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.83% on average over the next years.
EPS Next Y11.65%
EPS Next 2Y11.99%
EPS Next 3Y8.78%
EPS Next 5YN/A
Revenue Next Year12.66%
Revenue Next 2Y9.77%
Revenue Next 3Y6.17%
Revenue Next 5Y6.83%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.59, which indicates a rather cheap valuation of PAGS.
PAGS's Price/Earnings ratio is rather cheap when compared to the industry. PAGS is cheaper than 89.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of PAGS to the average of the S&P500 Index (27.49), we can say PAGS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.53, 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 85.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. PAGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.53 |
4.2 Price Multiples
98.99% 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 | 1.34 |
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)0.57
PEG (5Y)0.68
EPS Next 2Y11.99%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, PAGS has a reasonable but not impressive dividend return.
PAGS's Dividend Yield is a higher than the industry average which is at 4.87.
Compared to the average S&P500 Dividend Yield of 2.43, PAGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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
DPN/A
EPS Next 2Y11.99%
EPS Next 3Y8.78%
8.96
+0.21 (+2.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70%
Inst Owner Change-0.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.74B
Analysts77.89
Price Target11.78 (31.47%)
Short Float %10.95%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)5.4%
PT rev (3m)9.52%
EPS NQ rev (1m)2.72%
EPS NQ rev (3m)0.64%
EPS NY rev (1m)1.16%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.53 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 6.97 | ||
| P/B | 1.03 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 1.34 |
EPS(TTM)1.36
EY15.18%
EPS(NY)1.62
Fwd EY18.07%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)1.29
OCFY14.35%
SpS11.81
BVpS8.68
TBVpS6.86
PEG (NY)0.57
PEG (5Y)0.68
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 | 1.39 |
F-Score7
WACC6.59%
ROIC/WACC3.03
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 Y11.65%
EPS Next 2Y11.99%
EPS Next 3Y8.78%
EPS Next 5YN/A
Revenue 1Y (TTM)15.19%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%11%
Revenue Next Year12.66%
Revenue Next 2Y9.77%
Revenue Next 3Y6.17%
Revenue Next 5Y6.83%
EBIT growth 1Y21.19%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year24.39%
EBIT Next 3Y17.74%
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