NYSE:PAGS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. More Details

Rewards

Earnings are forecast to grow 20.41% per year

Earnings grew by 18.9% over the past year

Risk Analysis

No risks detected for PAGS from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has PagSeguro Digital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PAGS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

PAGS

-1.4%

US IT

-1.4%

US Market


1 Year Return

2.6%

PAGS

30.5%

US IT

17.8%

US Market

Return vs Industry: PAGS underperformed the US IT industry which returned 31.6% over the past year.

Return vs Market: PAGS underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

PAGSIndustryMarket
7 Day-0.3%-1.4%-1.4%
30 Day8.3%3.8%4.7%
90 Day5.9%7.1%8.2%
1 Year2.6%2.6%31.8%30.5%20.5%17.8%
3 Yearn/a91.9%84.5%42.2%32.7%
5 Yearn/a151.8%131.7%83.4%62.7%

Price Volatility Vs. Market

How volatile is PagSeguro Digital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PagSeguro Digital undervalued compared to its fair value and its price relative to the market?

52.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PAGS ($40.44) is trading above our estimate of fair value ($5)

Significantly Below Fair Value: PAGS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PAGS is poor value based on its PE Ratio (54.5x) compared to the US IT industry average (32.7x).

PE vs Market: PAGS is poor value based on its PE Ratio (54.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: PAGS is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: PAGS is overvalued based on its PB Ratio (8.6x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is PagSeguro Digital forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAGS's forecast earnings growth (20.4% per year) is above the savings rate (2.2%).

Earnings vs Market: PAGS's earnings (20.4% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PAGS's revenue (22.2% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: PAGS's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PAGS's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has PagSeguro Digital performed over the past 5 years?

50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAGS has high quality earnings.

Growing Profit Margin: PAGS's current net profit margins (37.2%) are higher than last year (37.1%).


Past Earnings Growth Analysis

Earnings Trend: PAGS's earnings have grown significantly by 50.1% per year over the past 5 years.

Accelerating Growth: PAGS's earnings growth over the past year (18.9%) is below its 5-year average (50.1% per year).

Earnings vs Industry: PAGS earnings growth over the past year (18.9%) exceeded the IT industry 8.1%.


Return on Equity

High ROE: PAGS's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is PagSeguro Digital's financial position?


Financial Position Analysis

Short Term Liabilities: PAGS's short term assets (R$14.6B) exceed its short term liabilities (R$6.6B).

Long Term Liabilities: PAGS's short term assets (R$14.6B) exceed its long term liabilities (R$1.1B).


Debt to Equity History and Analysis

Debt Level: PAGS is debt free.

Reducing Debt: PAGS had no debt 5 years ago.

Debt Coverage: PAGS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PAGS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is PagSeguro Digital current dividend yield, its reliability and sustainability?

0.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PAGS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PAGS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PAGS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PAGS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PAGS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PAGS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Luis Frias (57 yo)

2.83yrs

Tenure

Mr. Luis Frias has been the Chairman of the Board and Principal Executive Officer of PagSeguro Digital Ltd. since December 18, 2017. In this Position he has expanded UOL’s business, through organic growth ...


Leadership Team

NamePositionTenureCompensationOwnership
Luis Frias
Chairman & Principal Executive Officer2.83yrsno datano data
Eduardo Alcaro
Chief Financial & Investor Relations Officer2.83yrsno datano data
Ricardo da Silva
Executive Officer & Director2.83yrsno datano data
André Cazotto
Investor Relationsno datano datano data

2.8yrs

Average Tenure

48yo

Average Age

Experienced Management: PAGS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luis Frias
Chairman & Principal Executive Officer2.83yrsno datano data
Eduardo Alcaro
Chief Financial & Investor Relations Officer2.83yrsno datano data
Ricardo da Silva
Executive Officer & Director2.83yrsno datano data
Maria de Brito
Director3.25yrsno datano data
Noemia Mayumi Gushiken
Independent Director2.75yrsno datano data
Cleveland Teixeira
Independent Director1.75yrsno datano data
Marcia de Mello
Independent Director0.58yrno datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Board: PAGS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PagSeguro Digital Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PagSeguro Digital Ltd.
  • Ticker: PAGS
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$12.905b
  • Shares outstanding: 327.95m
  • Website: https://www.pagseguro.uol.com.br

Number of Employees


Location

  • PagSeguro Digital Ltd.
  • Avenida Brigadeiro Faria Lima, 1384
  • 4º Andar
  • São Paulo
  • São Paulo
  • 01451-001
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAGSNYSE (New York Stock Exchange)YesClass A common SharesUSUSDJan 2018

Biography

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 01:09
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.