PAGSEGURO DIGITAL LTD-CL A (PAGS)
KYG687071012 - Common Stock
Taking everything into account, PAGS scores 7 out of 10 in our fundamental rating. PAGS was compared to 102 industry peers in the Financial Services industry. PAGS has an excellent profitability rating, but there are some minor concerns on its financial health. PAGS is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make PAGS a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year PAGS was profitable.
PAGS had a positive operating cash flow in the past year.
Each year in the past 5 years PAGS has been profitable.
PAGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.00%, PAGS is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
PAGS's Return On Equity of 12.49% is fine compared to the rest of the industry. PAGS outperforms 60.78% of its industry peers.
PAGS has a Return On Invested Capital of 22.69%. This is amongst the best in the industry. PAGS outperforms 95.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAGS is significantly above the industry average of 7.92%.
The 3 year average ROIC (21.81%) for PAGS is below the current ROIC(22.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 12.49% | ||
| ROIC | 22.69% |
ROA(3y)3.36%
ROA(5y)5.05%
ROE(3y)12.1%
ROE(5y)13.45%
ROIC(3y)21.81%
ROIC(5y)19.75%
1.3 Margins
Looking at the Profit Margin, with a value of 10.37%, PAGS is in line with its industry, outperforming 57.84% of the companies in the same industry.
PAGS's Profit Margin has declined in the last couple of years.
PAGS has a better Operating Margin (35.45%) than 81.37% of its industry peers.
PAGS's Operating Margin has improved in the last couple of years.
PAGS's Gross Margin of 49.01% is fine compared to the rest of the industry. PAGS outperforms 69.61% of its industry peers.
PAGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.45% | ||
| PM (TTM) | 10.37% | ||
| GM | 49.01% |
OM growth 3Y9.09%
OM growth 5Y4.1%
PM growth 3Y-18.22%
PM growth 5Y-13.14%
GM growth 3Y3.16%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PAGS is creating value.
PAGS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PAGS has been increased compared to 5 years ago.
PAGS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that PAGS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, PAGS is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
PAGS has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
The Debt to FCF ratio of PAGS (0.09) is better than 91.18% of its industry peers.
PAGS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.01, PAGS belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 1.58 |
ROIC/WACC2.45
WACC9.27%
2.3 Liquidity
PAGS has a Current Ratio of 1.42. This is a normal value and indicates that PAGS is financially healthy and should not expect problems in meeting its short term obligations.
PAGS has a Current ratio of 1.42. This is in the better half of the industry: PAGS outperforms 63.73% of its industry peers.
A Quick Ratio of 1.41 indicates that PAGS should not have too much problems paying its short term obligations.
PAGS has a Quick ratio of 1.41. This is in the better half of the industry: PAGS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.63% over the past year.
The Earnings Per Share has been growing by 9.58% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.00% in the past year.
PAGS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.76% yearly.
EPS 1Y (TTM)13.63%
EPS 3Y7.95%
EPS 5Y9.58%
EPS growth Q2Q31.45%
Revenue 1Y (TTM)4%
Revenue growth 3Y32.77%
Revenue growth 5Y29.76%
Revenue growth Q2Q9.71%
3.2 Future
Based on estimates for the next years, PAGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.73% on average per year.
PAGS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.53% yearly.
EPS Next Y21.34%
EPS Next 2Y18.57%
EPS Next 3Y14.73%
EPS Next 5YN/A
Revenue Next Year9.14%
Revenue Next 2Y9.24%
Revenue Next 3Y8.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PAGS is valuated reasonably with a Price/Earnings ratio of 11.96.
Compared to the rest of the industry, the Price/Earnings ratio of PAGS indicates a somewhat cheap valuation: PAGS is cheaper than 71.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PAGS to the average of the S&P500 Index (25.20), we can say PAGS is valued rather cheaply.
PAGS is valuated reasonably with a Price/Forward Earnings ratio of 9.83.
Based on the Price/Forward Earnings ratio, PAGS is valued a bit cheaper than 75.49% of the companies in the same industry.
PAGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAGS is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
PAGS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAGS is cheaper than 77.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 1.5 |
4.3 Compensation for Growth
PAGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of PAGS may justify a higher PE ratio.
A more expensive valuation may be justified as PAGS's earnings are expected to grow with 14.73% in the coming years.
PEG (NY)0.56
PEG (5Y)1.25
EPS Next 2Y18.57%
EPS Next 3Y14.73%
5. Dividend
5.1 Amount
PAGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAGSEGURO DIGITAL LTD-CL A
NYSE:PAGS (4/26/2024, 3:10:03 PM)
After market: 12.68 0 (0%)12.68
+0.86 (+7.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 9.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.56
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 12.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.45% | ||
| PM (TTM) | 10.37% | ||
| GM | 49.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.63%
EPS 3Y7.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4%
Revenue growth 3Y32.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
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