PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAGS - KYG687071012 - Common Stock
10.29 USD
+0.36 (+3.63%)
10.306 USD
+0.02 (+0.16%)
PAGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. Both the profitability and the financial health of PAGS get a neutral evaluation. Nothing too spectacular is happening here. PAGS is valued quite cheap, while showing a decent growth score. This is a good combination! This makes PAGS very considerable 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.
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
PAGS's Return On Assets of 3.06% is fine compared to the rest of the industry. PAGS outperforms 69.39% of its industry peers.
PAGS has a better Return On Equity (14.88%) than 76.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.73%, PAGS belongs to the top of the industry, outperforming 94.90% 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 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
PAGS has a Profit Margin (11.01%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PAGS has declined.
PAGS has a better Operating Margin (38.12%) than 78.57% 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 has a better Gross Margin (51.55%) than 69.39% 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.
PAGS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAGS has about the same amount of shares outstanding.
Compared to 1 year ago, PAGS has a worse debt to assets ratio.
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.
The Altman-Z score of PAGS (1.42) is better than 65.31% of its industry peers.
The Debt to FCF ratio of PAGS is 0.88, which is an excellent value as it means it would take PAGS, only 0.88 years of fcf income to pay off all of its debts.
PAGS has a Debt to FCF ratio of 0.88. This is amongst the best in the industry. PAGS outperforms 82.65% 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's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. PAGS outperforms 68.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 1.42 |
ROIC/WACC2.67
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.42 indicates that PAGS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.42, PAGS is doing good in the industry, outperforming 67.35% of the companies in the same industry.
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 68.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.69% 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 11.57%.
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
PAGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
The Revenue is expected to grow by 7.15% on average over the next years.
EPS Next Y10.01%
EPS Next 2Y10.22%
EPS Next 3Y9.3%
EPS Next 5Y10.73%
Revenue Next Year10.08%
Revenue Next 2Y7.71%
Revenue Next 3Y6.35%
Revenue Next 5Y7.15%
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
PAGS is valuated cheaply with a Price/Earnings ratio of 7.25.
Compared to the rest of the industry, the Price/Earnings ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 82.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PAGS to the average of the S&P500 Index (27.19), we can say PAGS is valued rather cheaply.
PAGS is valuated cheaply with a Price/Forward Earnings ratio of 6.43.
Based on the Price/Forward Earnings ratio, PAGS is valued cheaper than 82.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. PAGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 6.43 |
4.2 Price Multiples
PAGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PAGS is cheaper than 97.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PAGS is valued cheaper than 90.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.05 | ||
| EV/EBITDA | 1.49 |
4.3 Compensation for Growth
The 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)0.72
PEG (5Y)0.75
EPS Next 2Y10.22%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, PAGS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.49, PAGS pays a bit more dividend than its industry peers.
PAGS's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 2Y10.22%
EPS Next 3Y9.3%
10.29
+0.36 (+3.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70.41%
Inst Owner Change-0.12%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.15B
Revenue(TTM)20.13B
Net Income(TTM)2.22B
Analysts76.84
Price Target12.06 (17.2%)
Short Float %10.88%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)4.87%
EPS beat(12)9
Avg EPS beat(12)3.34%
EPS beat(16)10
Avg EPS beat(16)1.96%
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)1.56%
PT rev (3m)2.44%
EPS NQ rev (1m)1.45%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-1.47%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)-1.34%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 6.43 | ||
| P/S | 0.84 | ||
| P/FCF | 6.05 | ||
| P/OCF | 3.37 | ||
| P/B | 1.14 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 1.49 |
EPS(TTM)1.42
EY13.8%
EPS(NY)1.6
Fwd EY15.56%
FCF(TTM)1.7
FCFY16.54%
OCF(TTM)3.06
OCFY29.7%
SpS12.22
BVpS9.04
TBVpS7.17
PEG (NY)0.72
PEG (5Y)0.75
Graham Number16.99
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
WACC8.15%
ROIC/WACC2.67
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 Y10.01%
EPS Next 2Y10.22%
EPS Next 3Y9.3%
EPS Next 5Y10.73%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%5.67%
Revenue Next Year10.08%
Revenue Next 2Y7.71%
Revenue Next 3Y6.35%
Revenue Next 5Y7.15%
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.
Can you provide the valuation status for PAGSEGURO DIGITAL LTD-CL A?
ChartMill assigns a valuation rating of 9 / 10 to PAGSEGURO DIGITAL LTD-CL A (PAGS). This can be considered as Undervalued.
What is the profitability of PAGS stock?
PAGSEGURO DIGITAL LTD-CL A (PAGS) has a profitability rating of 6 / 10.
How financially healthy is PAGSEGURO DIGITAL LTD-CL A?
The financial health rating of PAGSEGURO DIGITAL LTD-CL A (PAGS) is 6 / 10.
Can you provide the expected EPS growth for PAGS stock?
The Earnings per Share (EPS) of PAGSEGURO DIGITAL LTD-CL A (PAGS) is expected to grow by 10.01% in the next year.