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PagSeguro Digital

NYSE:PAGS
Snowflake Description

Exceptional growth potential with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PAGS
NYSE
$12B
Market Cap
  1. Home
  2. US
  3. Software
Company description

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 35 days ago. More info.


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  • PagSeguro Digital has significant price volatility in the past 3 months.
PAGS Share Price and Events
7 Day Returns
-1.5%
NYSE:PAGS
-0.5%
US IT
0.3%
US Market
1 Year Returns
30.8%
NYSE:PAGS
19.3%
US IT
0.7%
US Market
PAGS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PagSeguro Digital (PAGS) -1.5% 20% 19.1% 30.8% - -
US IT -0.5% 3.3% 9% 19.3% 89.5% 109.3%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • PAGS outperformed the IT industry which returned 19.3% over the past year.
  • PAGS outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is PagSeguro Digital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PagSeguro Digital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PagSeguro Digital.

NYSE:PAGS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PAGS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.011 (1 + (1- 34%) (0%))
1.008
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.008 * 5.96%)
8.74%

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 PagSeguro Digital 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
Levered FCF (BRL, Millions) Source Present Value
Discounted (@ 8.74%)
2019 -882.00 Analyst x1 -811.14
2020 -483.00 Analyst x1 -408.51
2021 77.00 Analyst x1 59.89
2022 115.17 Est @ 49.58% 82.39
2023 156.09 Est @ 35.52% 102.69
2024 196.17 Est @ 25.68% 118.69
2025 233.05 Est @ 18.8% 129.68
2026 265.63 Est @ 13.98% 135.93
2027 293.79 Est @ 10.6% 138.26
2028 318.01 Est @ 8.24% 137.63
Present value of next 10 years cash flows R$-314.50
NYSE:PAGS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= R$318.01 × (1 + 2.73%) ÷ (8.74% – 2.73%)
R$5,439.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= R$5,439.93 ÷ (1 + 8.74%)10
R$2,354.43
NYSE:PAGS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= R$-314.50 + R$2,354.43
R$2,039.93
Equity Value per Share
(BRL)
= Total value / Shares Outstanding
= R$2,039.93 / 327.29
R$6.23
NYSE:PAGS Discount to Share Price
Calculation Result
Exchange Rate BRL/USD
(Reporting currency to currency of NYSE:PAGS)
0.257
Value per Share
(USD)
= Value per Share in BRL x Exchange Rate (BRL/USD)
= R$6.23 x 0.257
$1.6
Value per share (USD) From above. $1.60
Current discount Discount to share price of $35.83
= -1 x ($35.83 - $1.60) / $1.60
-2136.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of PagSeguro Digital is above its future cash flow value.
Often investors are willing to pay a premium 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 PagSeguro Digital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PagSeguro Digital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PAGS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in BRL R$3.31
NYSE:PAGS Share Price ** NYSE (2019-06-17) in USD $35.83
NYSE:PAGS Share Price converted to BRL reporting currency Exchange rate (USD/ BRL) 3.891 R$139.4
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 34.95x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PagSeguro Digital.

NYSE:PAGS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PAGS Share Price ÷ EPS (both in BRL)

= 139.4 ÷ 3.31

42.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PagSeguro Digital is overvalued based on earnings compared to the US IT industry average.
  • PagSeguro Digital is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does PagSeguro Digital's expected growth come at a high price?
Raw Data
NYSE:PAGS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 42.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
24.5%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.45x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:PAGS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 42.11x ÷ 24.5%

1.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PagSeguro Digital is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PagSeguro Digital's assets?
Raw Data
NYSE:PAGS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in BRL R$21.45
NYSE:PAGS Share Price * NYSE (2019-06-17) in USD $35.83
NYSE:PAGS Share Price converted to BRL reporting currency Exchange rate (USD/ BRL) 3.891 R$139.4
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.13x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:PAGS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PAGS Share Price ÷ Book Value per Share (both in BRL)

= 139.4 ÷ 21.45

6.5x

* Primary Listing of PagSeguro Digital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PagSeguro Digital is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess PagSeguro Digital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. PagSeguro Digital has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is PagSeguro Digital expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PagSeguro Digital expected to grow at an attractive rate?
  • PagSeguro Digital's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PagSeguro Digital's earnings growth is expected to exceed the United States of America market average.
  • PagSeguro Digital's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PAGS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PAGS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 24.5%
NYSE:PAGS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 21.1%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PAGS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in BRL Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PAGS Future Estimates Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 12,015 2,977 1
2021-12-31 8,211 617 2,302 8
2020-12-31 7,207 15 1,861 11
2019-12-31 5,893 -424 1,430 10
NYSE:PAGS Past Financials Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income *
2019-03-31 2,885 -949 1,070
2018-12-31 2,642 -1,763 909
2018-09-30 2,379 -1,915 796
2018-06-30 2,147 -1,461 712
2018-03-31 1,924 -608 567
2017-12-31 1,696 454 479
2017-09-30 1,409 386 328
2017-06-30 1,139 101 219
2017-03-31 903 109 162
2016-12-31 741 77 127

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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.
Raw Data
NYSE:PAGS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from PagSeguro Digital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PAGS Future Estimates Data
Date (Data in BRL Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 9.11 9.11 9.11 1.00
2021-12-31 7.17 7.80 6.30 4.00
2020-12-31 5.73 6.35 5.23 4.00
2019-12-31 4.32 4.40 4.18 3.00
NYSE:PAGS Past Financials Data
Date (Data in BRL Millions) EPS *
2019-03-31 3.31
2018-12-31 2.86
2018-09-30 2.65
2018-06-30 2.50
2018-03-31 2.09
2017-12-31 1.83
2017-09-30 1.25
2017-06-30 0.83
2017-03-31 0.62
2016-12-31 0.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PagSeguro Digital is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess PagSeguro Digital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PagSeguro Digital has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PagSeguro Digital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PagSeguro Digital's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PagSeguro Digital has delivered over 20% year on year earnings growth in the past 5 years.
  • PagSeguro Digital's 1-year earnings growth exceeds its 5-year average (88.9% vs 57.4%)
  • PagSeguro Digital's earnings growth has exceeded the US IT industry average in the past year (88.9% vs 8.5%).
Earnings and Revenue History
PagSeguro Digital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PagSeguro Digital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PAGS Past Revenue, Cash Flow and Net Income Data
Date (Data in BRL Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,885.47 1,070.20 805.23
2018-12-31 2,641.72 909.27 933.11
2018-09-30 2,378.52 795.77 868.11
2018-06-30 2,146.78 711.53 713.39
2018-03-31 1,924.16 566.53 597.95
2017-12-31 1,696.19 478.78 398.94
2017-09-30 1,409.34 328.29 415.73
2017-06-30 1,139.26 218.53 354.17
2017-03-31 903.35 162.09 327.03
2016-12-31 740.62 127.19 284.40
2015-12-31 444.71 35.08 223.77
2014-12-31 208.29 25.97 132.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PagSeguro Digital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • It is difficult to establish if PagSeguro Digital has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if PagSeguro Digital improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess PagSeguro Digital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
PagSeguro Digital 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.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PagSeguro Digital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

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.
Net Worth
  • 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.
Balance sheet
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 checks below.
Assets
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.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from PagSeguro Digital Company Filings, last reported 2 months ago.

NYSE:PAGS Past Debt and Equity Data
Date (Data in BRL Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,885.62 0.00 2,422.46
2018-12-31 6,574.38 0.00 2,763.05
2018-09-30 6,281.53 0.00 2,470.06
2018-06-30 5,969.07 0.00 2,913.48
2018-03-31 4,476.72 0.00 2,545.39
2017-12-31 870.39 0.00 66.77
2017-09-30 678.43 0.00 41.81
2017-06-30 769.84 0.00 13.15
2017-03-31 626.86 211.82 79.97
2016-12-31 626.86 211.82 79.97
2015-12-31 461.88 0.00 6.89
2014-12-31 426.56 0.00 1.23
  • PagSeguro Digital has no debt.
  • PagSeguro Digital currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • PagSeguro Digital has no debt, it does not need to be covered by operating cash flow.
  • PagSeguro Digital has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess PagSeguro Digital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PagSeguro Digital has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from PagSeguro Digital dividends. Estimated to be 1.97% next year.
If you bought $2,000 of PagSeguro Digital shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate PagSeguro Digital's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate PagSeguro Digital's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PAGS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PAGS Future Dividends Estimate Data
Date (Data in R$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 8.66 1.00
2021-12-31 3.12 5.00
2020-12-31 1.36 3.00
2019-12-31 0.96 2.00
NYSE:PAGS Past Annualized Dividends Data
Date (Data in R$) Dividend per share (annual) Avg. Yield (%)
2018-03-09 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as PagSeguro Digital has not reported any payouts.
  • Unable to verify if PagSeguro Digital's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of PagSeguro Digital's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PagSeguro Digital has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess PagSeguro Digital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PagSeguro Digital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PagSeguro Digital has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PagSeguro Digital's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Luis Frias
AGE 55
TENURE AS CEO 1.5 years
CEO Bio

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.

CEO Compensation
  • 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 PagSeguro Digital management team in years:

1.5
Average Tenure
46
Average Age
  • The average tenure for the PagSeguro Digital management team is less than 2 years, this suggests a new team.
Management Team

Luis Frias

TITLE
Chairman & Principal Executive Officer
AGE
55
TENURE
1.5 yrs

Eduardo Alcaro

TITLE
Chief Financial & Investor Relations Officer
AGE
46
TENURE
1.5 yrs

Ricardo da Silva

TITLE
Executive Officer & Director
AGE
43
TENURE
1.5 yrs

André Cazotto

TITLE
Investor Relations
Board of Directors Tenure

Average tenure and age of the PagSeguro Digital board of directors in years:

1.5
Average Tenure
52
Average Age
  • The average tenure for the PagSeguro Digital board of directors is less than 3 years, this suggests a new board.
Board of Directors

Luis Frias

TITLE
Chairman & Principal Executive Officer
AGE
55
TENURE
1.5 yrs

Eduardo Alcaro

TITLE
Chief Financial & Investor Relations Officer
AGE
46
TENURE
1.5 yrs

Ricardo da Silva

TITLE
Executive Officer & Director
AGE
43
TENURE
1.5 yrs

Noemia Mayumi Gushiken

TITLE
Independent Director
AGE
46
TENURE
1.4 yrs

Maria de Brito

TITLE
Director
AGE
60
TENURE
1.9 yrs

Marcos de Barros Lisboa

TITLE
Independent Director
AGE
54
TENURE
1.2 yrs

Cleveland Teixeira

TITLE
Director
AGE
52
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess PagSeguro Digital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PagSeguro Digital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should We Worry About PagSeguro Digital Ltd.'s (NYSE:PAGS) P/E Ratio?

We'll apply a basic P/E ratio analysis to PagSeguro Digital Ltd.'s (NYSE:PAGS), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 35.23 = R$100.84 (Note: this is the share price in the reporting currency, namely, BRL ) ÷ R$2.86

Simply Wall St -

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.

Simply Wall St -

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.

Simply Wall St -

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

Simply Wall St -

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

Simply Wall St -

Looking At PagSeguro Digital Ltd. (NYSE:PAGS) From All Angles

(NYSE:PAGS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of PAGS, it

Simply Wall St -

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

Simply Wall St -

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

Simply Wall St -

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

Simply Wall St -

Why I Like PagSeguro Digital Ltd (NYSE:PAGS)

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.

Simply Wall St -

Company Info

Description

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.

Details
Name: PagSeguro Digital Ltd.
PAGS
Exchange: NYSE
Founded: 2006
$11,726,629,862
327,285,232
Website: http://www.pagseguro.uol.com.br
Address: PagSeguro Digital Ltd.
Avenida Brigadeiro Faria Lima, 1384,
4º Andar,
São Paulo,
São Paulo, 01451-001,
Brazil
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PAGS Class A common Shares New York Stock Exchange US USD 24. Jan 2018
Number of employees
Current staff
Staff numbers
1,020
PagSeguro Digital employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 00:53
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.