PAGS

PagSeguro DigitalNYSE:PAGS Stock Report

Market Cap

US$18.1b

7D

-2.6%

1Y

46.5%

Updated

16 Sep, 2021

Data

Company Financials +
PAGS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance1/6
Financial Health6/6
Dividends0/6

PAGS Overview

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.

PagSeguro Digital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PagSeguro Digital
Historical stock prices
Current Share PriceUS$54.92
52 Week HighUS$35.50
52 Week LowUS$62.83
Beta1.55
1 Month Change-2.03%
3 Month Change-0.33%
1 Year Change46.49%
3 Year Change89.05%
5 Year Changen/a
Change since IPO88.08%

Recent News & Updates

Sep 15
Some Investors May Be Worried About PagSeguro Digital's (NYSE:PAGS) Returns On Capital

Some Investors May Be Worried About PagSeguro Digital's (NYSE:PAGS) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Aug 24
PagSeguro Digital Ltd. (NYSE:PAGS) Shares Could Be 26% Above Their Intrinsic Value Estimate

PagSeguro Digital Ltd. (NYSE:PAGS) Shares Could Be 26% Above Their Intrinsic Value Estimate

Does the August share price for PagSeguro Digital Ltd. ( NYSE:PAGS ) reflect what it's really worth? Today, we will...

Aug 04

PagSeguro - The Next Super App Of Brazil

Founded in 2006, PagSeguro began its operations as a merchant acquirer providing payment processing services. Today, the company is a hybrid of a bank and a tech company. Located in Brazil, a country with very high cash usage and a population of 210 million, PagSeguro is a disruptive player operating in a highly penetrable market. PagSeguro has grown its revenue from R$1.1 billion in 2016 to R$6.8 billion in 2020, and the number of merchants using its payment processing services has grown from 1.4 million. Traditional incumbent players have poorly serviced 60 million people, resulting in a massive penetration opportunity for PagBank. PagBank is still being relatively overlooked by the market when you take a 10-year view of the business.

Jun 28
Why PagSeguro Digital Ltd. (NYSE:PAGS) Could Be Worth Watching

Why PagSeguro Digital Ltd. (NYSE:PAGS) Could Be Worth Watching

Let's talk about the popular PagSeguro Digital Ltd. ( NYSE:PAGS ). The company's shares led the NYSE gainers with a...

Shareholder Returns

PAGSUS ITUS Market
7D-2.6%-1.1%-0.6%
1Y46.5%26.1%33.7%

Return vs Industry: PAGS exceeded the US IT industry which returned 21.7% over the past year.

Return vs Market: PAGS exceeded the US Market which returned 30.7% over the past year.

Price Volatility

Is PAGS's price volatile compared to industry and market?
PAGS volatility
PAGS Beta1.55
Industry Beta1.18
Market Beta1

Stable Share Price: PAGS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PAGS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aLuiz Friashttps://www.pagseguro.uol.com.br

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. The company’s products and services include PagSeguro Ecosystem, a 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; PagBank digital account, which offers banking services through the PagBank mobile app; 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.

Valuation

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

80.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PAGS ($54.92) is trading above our estimate of fair value ($46.64)

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 (80.4x) compared to the US IT industry average (32.8x).

PE vs Market: PAGS is poor value based on its PE Ratio (80.4x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: PAGS is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: PAGS is overvalued based on its PB Ratio (9.5x) compared to the US IT industry average (5.4x).


Future Growth

How is PagSeguro Digital forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAGS's forecast earnings growth (27.9% per year) is above the savings rate (2%).

Earnings vs Market: PAGS's earnings (27.9% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: PAGS's revenue (20.4% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: PAGS's revenue (20.4% 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 (20.2%)


Past Performance

How has PagSeguro Digital performed over the past 5 years?

33.3%

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 (14.4%) are lower than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: PAGS's earnings have grown significantly by 33.3% 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 (-14.7%) over the past year, making it difficult to compare to the IT industry average (28%).


Return on Equity

High ROE: PAGS's Return on Equity (11.8%) is considered low.


Financial Health

How is PagSeguro Digital's financial position?


Financial Position Analysis

Short Term Liabilities: PAGS's short term assets (R$20.6B) exceed its short term liabilities (R$12.6B).

Long Term Liabilities: PAGS's short term assets (R$20.6B) exceed its long term liabilities (R$1.6B).


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 19.5%.

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?

0.003%

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?

2.2yrs

Average management tenure


CEO

Luiz Frias (58 yo)

3.75yrs

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 considered experienced (2.2 years average tenure).


Board Members

Experienced Board: PAGS's board of directors are considered experienced (3.7 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 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$18.069b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 04:54
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
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.