PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
NYSE:PAGS - New York Stock Exchange, Inc. - KYG687071012 - Common Stock - Currency: USD
PAGS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While PAGS has a great profitability rating, there are some minor concerns on its financial health. PAGS may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year PAGS was profitable.
PAGS had a negative operating cash flow in the past year.
PAGS had positive earnings in each of the past 5 years.
Of the past 5 years PAGS 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.12%, PAGS is doing good in the industry, outperforming 65.00% of the companies in the same industry.
PAGS has a better Return On Equity (14.45%) than 70.00% of its industry peers.
The Return On Invested Capital of PAGS (17.14%) is better than 93.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAGS is significantly above the industry average of 11.84%.
The last Return On Invested Capital (17.14%) for PAGS is well below the 3 year average (22.59%), which needs to be investigated, but indicates that PAGS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 14.45% | ||
| ROIC | 17.14% |
ROA(3y)3.07%
ROA(5y)3.75%
ROE(3y)13.21%
ROE(5y)12.92%
ROIC(3y)22.59%
ROIC(5y)19.48%
1.3 Margins
The Profit Margin of PAGS (11.16%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PAGS has declined.
With a decent Operating Margin value of 35.09%, PAGS is doing good in the industry, outperforming 76.00% of the companies in the same industry.
PAGS's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 49.71%, PAGS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Gross Margin of PAGS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.09% | ||
| PM (TTM) | 11.16% | ||
| GM | 49.71% |
OM growth 3Y16.32%
OM growth 5Y-0.01%
PM growth 3Y0.28%
PM growth 5Y-14.01%
GM growth 3Y3.28%
GM growth 5Y-0.92%
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.
Compared to 1 year ago, PAGS has about the same amount of shares outstanding.
Compared to 5 years ago, PAGS has about the same amount of shares outstanding.
PAGS has a worse debt/assets ratio than last year.
2.2 Solvency
PAGS has an Altman-Z score of 1.48. This is a bad value and indicates that PAGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, PAGS is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
PAGS has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
PAGS has a Debt to Equity ratio of 0.30. This is in the better half of the industry: PAGS outperforms 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC2.13
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.52 indicates that PAGS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, PAGS is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that PAGS should not have too much problems paying its short term obligations.
The Quick ratio of PAGS (1.52) is better than 69.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.39% over the past year.
Measured over the past years, PAGS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.65% on average per year.
The Revenue has grown by 17.26% in the past year. This is quite good.
The Revenue has been growing by 26.94% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.39%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.04%
Revenue 1Y (TTM)17.26%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%12.63%
3.2 Future
The Earnings Per Share is expected to grow by 9.10% on average over the next years. This is quite good.
Based on estimates for the next years, PAGS will show a small growth in Revenue. The Revenue will grow by 2.57% on average per year.
EPS Next Y10.32%
EPS Next 2Y10.74%
EPS Next 3Y9.1%
EPS Next 5YN/A
Revenue Next Year15.31%
Revenue Next 2Y11.29%
Revenue Next 3Y7.59%
Revenue Next 5Y2.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PAGS is valuated cheaply with a Price/Earnings ratio of 6.63.
87.00% of the companies in the same industry are more expensive than PAGS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, PAGS is valued rather cheaply.
A Price/Forward Earnings ratio of 5.55 indicates a rather cheap valuation of PAGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 86.00% of the companies listed in the same industry.
PAGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 5.55 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than PAGS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PAGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)0.69
EPS Next 2Y10.74%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
PAGS has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 4.86, PAGS pays a bit more dividend than its industry peers.
PAGS's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
PAGS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y10.74%
EPS Next 3Y9.1%
8.69
-0.36 (-3.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners69.44%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.86B
Analysts74.74
Price Target10.75 (23.71%)
Short Float %8.22%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.65%
Min EPS beat(2)0.87%
Max EPS beat(2)10.43%
EPS beat(4)4
Avg EPS beat(4)4.24%
Min EPS beat(4)0.87%
Max EPS beat(4)10.43%
EPS beat(8)7
Avg EPS beat(8)3.99%
EPS beat(12)9
Avg EPS beat(12)2.94%
EPS beat(16)10
Avg EPS beat(16)1.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)1.04%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)5.33%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)-1.05%
PT rev (3m)1.89%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)2.76%
EPS NY rev (3m)5.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 5.55 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.07 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 1.58 |
EPS(TTM)1.31
EY15.07%
EPS(NY)1.56
Fwd EY18%
FCF(TTM)-3.84
FCFYN/A
OCF(TTM)-2.52
OCFYN/A
SpS10.55
BVpS8.15
TBVpS6.51
PEG (NY)0.64
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 14.45% | ||
| ROCE | 23.03% | ||
| ROIC | 17.14% | ||
| ROICexc | 17.99% | ||
| ROICexgc | 19.84% | ||
| OM | 35.09% | ||
| PM (TTM) | 11.16% | ||
| GM | 49.71% | ||
| FCFM | N/A |
ROA(3y)3.07%
ROA(5y)3.75%
ROE(3y)13.21%
ROE(5y)12.92%
ROIC(3y)22.59%
ROIC(5y)19.48%
ROICexc(3y)30.91%
ROICexc(5y)26.15%
ROICexgc(3y)37.53%
ROICexgc(5y)31.44%
ROCE(3y)27.45%
ROCE(5y)23.69%
ROICexcg growth 3Y-6.67%
ROICexcg growth 5Y-10.61%
ROICexc growth 3Y-4.13%
ROICexc growth 5Y-10.35%
OM growth 3Y16.32%
OM growth 5Y-0.01%
PM growth 3Y0.28%
PM growth 5Y-14.01%
GM growth 3Y3.28%
GM growth 5Y-0.92%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 144.5% | ||
| Cap/Sales | 12.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.48 |
F-Score7
WACC8.06%
ROIC/WACC2.13
Cap/Depr(3y)160.19%
Cap/Depr(5y)250.47%
Cap/Sales(3y)12.91%
Cap/Sales(5y)17.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.39%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.04%
EPS Next Y10.32%
EPS Next 2Y10.74%
EPS Next 3Y9.1%
EPS Next 5YN/A
Revenue 1Y (TTM)17.26%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%12.63%
Revenue Next Year15.31%
Revenue Next 2Y11.29%
Revenue Next 3Y7.59%
Revenue Next 5Y2.57%
EBIT growth 1Y17.29%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year25.15%
EBIT Next 3Y19.66%
EBIT Next 5YN/A
FCF growth 1Y-491.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-226.45%
OCF growth 3YN/A
OCF growth 5YN/A