PagSeguro Digital
Market Cap
US$12.0b
Last Updated
2020/02/23 02:41 UTC
Data Sources
Company Financials +
Executive Summary
PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally.
Rewards
Risk Analysis
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
3.9%
PAGS
-0.8%
US IT
-1.1%
US Market
1 Year Return
40.0%
PAGS
34.8%
US IT
17.9%
US Market
Return vs Industry: PAGS exceeded the US IT industry which returned 34.8% over the past year.
Return vs Market: PAGS exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| PAGS | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | -0.8% | -1.1% |
| 30 Day | 5.2% | 3.3% | 1.4% |
| 90 Day | 8.7% | 13.0% | 6.9% |
| 1 Year | 40.0%40.0% | 36.2%34.8% | 20.3%17.9% |
| 3 Year | n/a | 107.0%98.1% | 47.8%38.3% |
| 5 Year | n/a | 148.0%125.8% | 71.9%53.0% |
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
2 weeks ago | Simply Wall St
Does PagSeguro Digital Ltd. (NYSE:PAGS) Create Value For Shareholders?1 month ago | Simply Wall St
What Does PagSeguro Digital Ltd.'s (NYSE:PAGS) P/E Ratio Tell You?2 months ago | Simply Wall St
Should You Rely On PagSeguro Digital's (NYSE:PAGS) Earnings Growth?Valuation
Is PagSeguro Digital undervalued compared to its fair value and its price relative to the market?
40.55x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PAGS ($36.58) is trading above our estimate of fair value ($2.26)
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 (40.6x) compared to the IT industry average (31.4x).
PE vs Market: PAGS is poor value based on its PE Ratio (40.6x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: PAGS is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: PAGS is overvalued based on its PB Ratio (6.9x) compared to the US IT industry average (4.2x).
Next Steps
Future Growth
How is PagSeguro Digital forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
18.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAGS's forecast earnings growth (18.3% per year) is above the savings rate (1.7%).
Earnings vs Market: PAGS's earnings (18.3% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: PAGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: PAGS's revenue (16.5% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: PAGS's revenue (16.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PAGS's Return on Equity is forecast to be high in 3 years time (20.5%)
Next Steps
Past Performance
How has PagSeguro Digital performed over the past 5 years?
52.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAGS has a high level of non-cash earnings.
Growing Profit Margin: PAGS's current net profit margins (38.2%) are higher than last year (33.5%).
Past Earnings Growth Analysis
Earnings Trend: PAGS's earnings have grown significantly by 52.9% per year over the past 5 years.
Accelerating Growth: PAGS's earnings growth over the past year (60.4%) exceeds its 5-year average (52.9% per year).
Earnings vs Industry: PAGS earnings growth over the past year (60.4%) exceeded the IT industry 12%.
Return on Equity
High ROE: PAGS's Return on Equity (16.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is PagSeguro Digital's financial position?
Financial Position Analysis
Short Term Liabilities: PAGS's short term assets (R$12.2B) exceed its short term liabilities (R$4.9B).
Long Term Liabilities: PAGS's short term assets (R$12.2B) exceed its long term liabilities (R$491.7M).
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
Inventory Level: PAGS has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if PAGS's debt is covered by short term assets.
Next Steps
Dividend
What is PagSeguro Digital's current dividend yield, its reliability and sustainability?
0.34%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PAGS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PAGS's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
2.2yrs
Average management tenure
CEO
Luis Frias (56yo)
2.2yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & Principal Executive Officer | 2.2yrs | no data | no data | |
| Chief Financial & Investor Relations Officer | 2.2yrs | no data | no data | |
| Executive Officer & Director | 2.2yrs | no data | no data | |
| Investor Relations | 0yrs | no data | no data |
2.2yrs
Average Tenure
47yo
Average Age
Experienced Management: PAGS's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & Principal Executive Officer | 2.2yrs | no data | no data | |
| Chief Financial & Investor Relations Officer | 2.2yrs | no data | no data | |
| Executive Officer & Director | 2.2yrs | no data | no data | |
| Director | 2.6yrs | no data | no data | |
| Independent Director | 1.8yrs | no data | no data | |
| Independent Director | 2.1yrs | no data | no data | |
| Independent Director | 1.1yrs | no data | no data |
2.2yrs
Average Tenure
53yo
Average Age
Experienced Board: PAGS's board of directors are not considered experienced ( 2.2 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 been diluted in the past year, with total shares outstanding growing by 7.5%.
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$12.010b
- Shares outstanding: 328.33m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PAGS | NYSE (New York Stock Exchange) | Yes | Class A common Shares | US | USD | Jan 2018 |
Biography
PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. The company’s products and services include PagSeguro Ecosystem, an end-to-end digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; and Free PagSeguro digital account, which centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem. It also offers online gaming and cross-border digital services. In addition, the company offers functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, eWallet, and its (point of sale) POS app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. Additionally, the company engages in the in-person payment activities through POS devices; and issuance of prepaid cards to clients for spending or withdrawing account balances. It also operates an online platform that facilitates peer-to-peer lending. The company was founded in 2006 and is headquartered in São Paulo, Brazil. PagSeguro Digital Ltd. is a subsidiary of Universo Online S.A.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 02:41 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.