PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally.
The last earnings update was 57 days ago.
Discounted Cash Flow Calculation for NYSE:PAGS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NYSE:PAGS DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
PagSeguro Digital's earnings available for a low price, and how does
this compare to other companies in the same industry?
PagSeguro Digital's earnings are expected to grow significantly at over 20% yearly.
PagSeguro Digital's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
PagSeguro Digital's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
PagSeguro Digital's finances.
The net worth of a company is the difference between its assets and liabilities.
PagSeguro Digital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
PagSeguro Digital's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
PagSeguro Digital's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
PagSeguro Digital has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 and more than 20 acquisitions, to cover digital content and products, e-learning and cloud/IT services, as well as the PagSeguro financial technology business. Mr. Frias joined Grupo Folha in 1981 and has been its Principal Executive Officer since 1989. In that capacity he led Grupo Folha’s expansion into various new markets, such as commercial printing (through Plural, a partnership with Quad Graphics) and e-commerce logistics (through Transfolha). He founded Universo Online S/A (UOL) in 1996. He holds a Bachelor’s degree in Economics from the University of São Paulo (Universidade de São Paulo – USP) and Master's degree from University of Cambridge, England, and the Université de Paris (Sorbonne), France.
Insufficient data for Luis to compare compensation growth.
Insufficient data for Luis to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the PagSeguro Digital management team is less than 2 years, this suggests a new team.
Chairman & Principal Executive Officer
Chief Financial & Investor Relations Officer
Ricardo da Silva
Executive Officer & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the PagSeguro Digital board of directors is less than 3 years, this suggests a new board.
Investors Who Bought PagSeguro Digital (NYSE:PAGS) Shares A Year Ago Are Now Down 21%
But in truth the last year hasn't been good for the share price. … During the unfortunate twelve months during which the PagSeguro Digital share price fell, it actually saw its earnings per share (EPS) improve by 57%. … The divergence between the EPS and the share price is quite notable, during the year.
What You Must Know About PagSeguro Digital Ltd.'s (NYSE:PAGS) Financial Health
Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as PagSeguro Digital Ltd. … Today we will look at PAGS’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.
What Should You Know About The Future Of PagSeguro Digital Ltd.'s (NYSE:PAGS)?
Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … PagSeguro Digital Ltd.'s (NYSE:PAGS) released its most recent earnings update in December 2018, whicha
Should We Worry About PagSeguro Digital Ltd.'s (NYSE:PAGS) P/E Ratio?
We'll look at PagSeguro Digital Ltd.'s (NYSE:PAGS) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 31.88 = R$84.43 (Note: this is the share price in the reporting currency, namely, BRL ) ÷ R$2.65
PagSeguro Digital Ltd (NYSE:PAGS) Delivered A Weaker ROE Than Its Industry
By way of learning-by-doing, we'll look at ROE to gain a better understanding PagSeguro Digital Ltd (NYSE:PAGS). … That means that for every $1 worth of shareholders' equity, it generated $0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Do You Get For Owning PagSeguro Digital Ltd (NYSE:PAGS)?
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand PagSeguro Digital’s capital returns we will look at a useful metric called return on capital employed. … PagSeguro Digital's Return On Capital Employed
Should You Be Tempted To Sell PagSeguro Digital Ltd (NYSE:PAGS) At Its Current PE Ratio?
Though this might seem to be a negative, you might change your mind after I explain the assumptions behind the P/E ratio. … I will break down what the P/E ratio is, how to interpret it and what other factors to keep in mind … Check out our latest analysis for PagSeguro Digital
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.
What You Must Know About PagSeguro Digital Ltd's (NYSE:PAGS) 12.66% ROE
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … PagSeguro Digital Ltd (NYSE:PAGS) performed in line with its data processing and outsourced services industry on the basis of its ROE – producing a return of 12.66% relative to the peer average of 15.29% over the past 12 months. … View our latest analysis for PagSeguro Digital
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.
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