PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - NYSE:PAGS - KYG687071012 - Common Stock
10.22 USD
-0.33 (-3.13%)
10.32 USD
+0.1 (+0.98%)
Taking everything into account, PAGS scores 5 out of 10 in our fundamental rating. PAGS was compared to 101 industry peers in the Financial Services industry. PAGS has only an average score on both its financial health and profitability. PAGS is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year PAGS was profitable.
In the past year PAGS had a positive cash flow from operations.
In the past 5 years PAGS has always been profitable.
PAGS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.08%, PAGS is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
PAGS's Return On Equity of 15.03% is fine compared to the rest of the industry. PAGS outperforms 74.26% of its industry peers.
The Return On Invested Capital of PAGS (19.95%) is better than 94.06% of its industry peers.
PAGS had an Average Return On Invested Capital over the past 3 years of 22.59%. This is significantly above the industry average of 7.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 15.03% | ||
| ROIC | 19.95% |
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
PAGS has a Profit Margin (11.04%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PAGS has declined.
PAGS's Operating Margin of 36.35% is fine compared to the rest of the industry. PAGS outperforms 75.25% of its industry peers.
PAGS's Operating Margin has been stable in the last couple of years.
PAGS's Gross Margin of 50.58% is fine compared to the rest of the industry. PAGS outperforms 66.34% of its industry peers.
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 | 36.35% | ||
| PM (TTM) | 11.04% | ||
| GM | 50.58% |
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.
The number of shares outstanding for PAGS remains at a similar level compared to 1 year ago.
The number of shares outstanding for PAGS remains at a similar level compared to 5 years ago.
The debt/assets ratio for PAGS is higher compared to a year ago.
2.2 Solvency
PAGS has an Altman-Z score of 1.41. This is a bad value and indicates that PAGS is not financially healthy and even has some risk of bankruptcy.
PAGS has a better Altman-Z score (1.41) than 67.33% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that PAGS is not too dependend on debt financing.
PAGS has a better Debt to Equity ratio (0.24) than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC2.54
WACC7.86%
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's Current ratio of 1.42 is fine compared to the rest of the industry. PAGS outperforms 65.35% of its industry peers.
A Quick Ratio of 1.42 indicates that PAGS should not have too much problems paying its short term obligations.
PAGS's Quick ratio of 1.42 is fine compared to the rest of the industry. PAGS outperforms 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.73% over the past year.
PAGS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.65% yearly.
PAGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.19%.
Measured over the past years, PAGS shows a very strong growth in Revenue. The Revenue has been growing by 26.94% on average per year.
EPS 1Y (TTM)18.73%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.9%
Revenue 1Y (TTM)15.19%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%11%
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 8.49% on average per year.
PAGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y10.37%
EPS Next 2Y10.69%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue Next Year13.91%
Revenue Next 2Y9.91%
Revenue Next 3Y5.55%
Revenue Next 5Y2.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 7.30, the valuation of PAGS can be described as very cheap.
PAGS's Price/Earnings ratio is rather cheap when compared to the industry. PAGS is cheaper than 87.13% of the companies in the same industry.
PAGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 6.28, the valuation of PAGS can be described as very cheap.
PAGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PAGS is cheaper than 84.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. PAGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAGS is valued cheaply inside the industry as 99.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.57 |
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 decent profitability rating of PAGS may justify a higher PE ratio.
PEG (NY)0.7
PEG (5Y)0.76
EPS Next 2Y10.69%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
PAGS has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
PAGS's Dividend Yield is comparable with the industry average which is at 5.03.
Compared to an average S&P500 Dividend Yield of 2.38, PAGS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
PAGS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.69%
EPS Next 3Y8.49%
10.22
-0.33 (-3.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners66.64%
Inst Owner Change-8.4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.12B
Analysts75.79
Price Target11.17 (9.3%)
Short Float %13.5%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.43%
Min EPS beat(2)0.87%
Max EPS beat(2)3.98%
EPS beat(4)4
Avg EPS beat(4)5.11%
Min EPS beat(4)0.87%
Max EPS beat(4)11.5%
EPS beat(8)8
Avg EPS beat(8)4.99%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)11
Avg EPS beat(16)2.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-2.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)1.52%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)4
Avg Revenue beat(12)-1%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)-0.41%
PT rev (3m)3.92%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.28 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 7.72 | ||
| P/B | 1.14 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 1.57 |
EPS(TTM)1.4
EY13.7%
EPS(NY)1.63
Fwd EY15.93%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)1.32
OCFY12.95%
SpS12.16
BVpS8.93
TBVpS7.06
PEG (NY)0.7
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 15.03% | ||
| ROCE | 26.27% | ||
| ROIC | 19.95% | ||
| ROICexc | 21.02% | ||
| ROICexgc | 23.46% | ||
| OM | 36.35% | ||
| PM (TTM) | 11.04% | ||
| GM | 50.58% | ||
| 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 | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 133.2% | ||
| Cap/Sales | 11.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.41 |
F-Score7
WACC7.86%
ROIC/WACC2.54
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)18.73%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%11.9%
EPS Next Y10.37%
EPS Next 2Y10.69%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue 1Y (TTM)15.19%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%11%
Revenue Next Year13.91%
Revenue Next 2Y9.91%
Revenue Next 3Y5.55%
Revenue Next 5Y2.57%
EBIT growth 1Y21.19%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year23.86%
EBIT Next 3Y19.65%
EBIT Next 5YN/A
FCF growth 1Y-106.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-44.47%
OCF growth 3YN/A
OCF growth 5YN/A