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Market Cap

US$13.7b

Last Updated

2021/05/12 23:55 UTC

Data Sources

Company Financials +

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

Trading at 4.6% below our estimate of its fair value

Earnings are forecast to grow 20.18% per year

Risk Analysis

No risks detected for PAGS from our risk checks.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PAGS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-8.0%

PAGS

-4.3%

US IT

-2.8%

US Market


1 Year Return

67.4%

PAGS

39.6%

US IT

49.4%

US Market

Return vs Industry: PAGS exceeded the US IT industry which returned 41.1% over the past year.

Return vs Market: PAGS exceeded the US Market which returned 48.6% over the past year.


Shareholder returns

PAGSIndustryMarket
7 Day-8.0%-4.3%-2.8%
30 Day-14.9%-6.3%-2.3%
90 Day-36.0%-6.4%-1.3%
1 Year67.4%67.4%40.8%39.6%51.8%49.4%
3 Year21.7%21.7%87.6%80.9%57.5%47.6%
5 Yearn/a194.1%174.2%121.7%97.1%

Long-Term 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?

4.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAGS ($39.62) is trading below our estimate of fair value ($41.54)

Significantly Below Fair Value: PAGS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PAGS is poor value based on its PE Ratio (53.1x) compared to the US IT industry average (33.8x).

PE vs Market: PAGS is poor value based on its PE Ratio (53.1x) compared to the US market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: PAGS is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: PAGS is overvalued based on its PB Ratio (7.4x) compared to the US IT industry average (4.9x).


Future Growth

How is PagSeguro Digital forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAGS's forecast earnings growth (20.2% per year) is above the savings rate (2%).

Earnings vs Market: PAGS's earnings (20.2% per year) are forecast to grow faster than the US market (15.4% per year).

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

Revenue vs Market: PAGS's revenue (20% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: PAGS's revenue (20% 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 high in 3 years time (21.4%)


Past Performance

How has PagSeguro Digital performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAGS has high quality earnings.

Growing Profit Margin: PAGS's current net profit margins (19.3%) are lower than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: PAGS's earnings have grown significantly by 41.6% per year over the past 5 years.

Accelerating Growth: PAGS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PAGS had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the IT industry average (19.3%).


Return on Equity

High ROE: PAGS's Return on Equity (13.9%) is considered low.


Financial Health

How is PagSeguro Digital's financial position?


Financial Position Analysis

Short Term Liabilities: PAGS's short term assets (R$19.2B) exceed its short term liabilities (R$11.6B).

Long Term Liabilities: PAGS's short term assets (R$19.2B) exceed its long term liabilities (R$1.4B).


Debt to Equity History and Analysis

Debt Level: PAGS is debt free.

Reducing Debt: PAGS has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.

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


Dividend

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

0.44%

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?

1.9yrs

Average management tenure


CEO

Luiz Frias (57 yo)

3.42yrs

Tenure

Mr. Luiz 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

Experienced Management: PAGS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: PAGS's board of directors are considered experienced (3.4 years average tenure).


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$13.746b
  • Shares outstanding: 329.01m
  • 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


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 Analysis2021/05/12 23:55
End of Day Share Price2021/05/12 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.