PAGSEGURO DIGITAL LTD-CL A (PAGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PAGS - KYG687071012 - Common Stock
10.48 USD
+0.48 (+4.8%)
10.45 USD
-0.03 (-0.29%)
Overall PAGS gets a fundamental rating of 6 out of 10. We evaluated PAGS against 98 industry peers in the Financial Services industry. Both the profitability and the financial health of PAGS get a neutral evaluation. Nothing too spectacular is happening here. PAGS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, PAGS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
PAGS had positive earnings in the past year.
PAGS had a positive operating cash flow in the past year.
Each year in the past 5 years PAGS has been profitable.
Of the past 5 years PAGS 4 years had a positive operating cash flow.
1.2 Ratios
PAGS's Return On Assets of 3.06% is fine compared to the rest of the industry. PAGS outperforms 68.37% of its industry peers.
PAGS has a Return On Equity of 14.88%. This is in the better half of the industry: PAGS outperforms 76.53% of its industry peers.
PAGS has a Return On Invested Capital of 21.73%. This is amongst the best in the industry. PAGS outperforms 94.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAGS is significantly above the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 14.88% | ||
| ROIC | 21.73% |
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 of 11.01%. This is comparable to the rest of the industry: PAGS outperforms 54.08% of its industry peers.
In the last couple of years the Profit Margin of PAGS has declined.
Looking at the Operating Margin, with a value of 38.12%, PAGS is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
PAGS's Operating Margin has been stable in the last couple of years.
PAGS has a Gross Margin of 51.55%. This is in the better half of the industry: PAGS outperforms 70.41% 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 | 38.12% | ||
| PM (TTM) | 11.01% | ||
| GM | 51.55% |
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.
PAGS has about the same amout of shares outstanding than it did 1 year ago.
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 1.42. 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 1.42, PAGS is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
PAGS has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
The Debt to FCF ratio of PAGS (0.88) is better than 82.65% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that PAGS is not too dependend on debt financing.
PAGS's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. PAGS outperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 1.42 |
ROIC/WACC3.21
WACC6.76%
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 better Current ratio (1.42) than 66.33% of its industry peers.
PAGS has a Quick 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.
With a decent Quick ratio value of 1.42, PAGS is doing good in the industry, outperforming 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
PAGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.69%, which is quite good.
The Earnings Per Share has been growing by 9.65% on average over the past years. This is quite good.
The Revenue has grown by 11.57% in the past year. This is quite good.
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)13.69%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%8.99%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%5.67%
3.2 Future
The Earnings Per Share is expected to grow by 10.73% 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 7.08% on average per year.
EPS Next Y10.91%
EPS Next 2Y9.81%
EPS Next 3Y9.11%
EPS Next 5Y10.73%
Revenue Next Year12.6%
Revenue Next 2Y9.65%
Revenue Next 3Y7.66%
Revenue Next 5Y7.08%
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.
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
The Price/Earnings ratio is 7.33, which indicates a rather cheap valuation of PAGS.
Based on the Price/Earnings ratio, PAGS is valued cheaply inside the industry as 84.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PAGS to the average of the S&P500 Index (26.31), we can say PAGS is valued rather cheaply.
PAGS is valuated cheaply with a Price/Forward Earnings ratio of 6.54.
PAGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PAGS is cheaper than 80.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, PAGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAGS indicates a rather cheap valuation: PAGS is cheaper than 97.96% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PAGS is valued cheaper than 88.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.1 | ||
| 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 decent profitability rating of PAGS may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)0.76
EPS Next 2Y9.81%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
PAGS has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
PAGS's Dividend Yield is comparable with the industry average which is at 4.97.
PAGS's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
DPN/A
EPS Next 2Y9.81%
EPS Next 3Y9.11%
10.48
+0.48 (+4.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70%
Inst Owner Change2%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.20B
Revenue(TTM)20.13B
Net Income(TTM)2.22B
Analysts76.84
Price Target11.72 (11.83%)
Short Float %8.29%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.54%
Min EPS beat(2)-0.91%
Max EPS beat(2)3.98%
EPS beat(4)3
Avg EPS beat(4)3.86%
Min EPS beat(4)-0.91%
Max EPS beat(4)11.5%
EPS beat(8)7
Avg EPS beat(8)4.83%
EPS beat(12)9
Avg EPS beat(12)3.32%
EPS beat(16)10
Avg EPS beat(16)1.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-6.36%
Max Revenue beat(2)-2.24%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)-0.16%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)4
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.47%
PT rev (1m)-0.47%
PT rev (3m)3.61%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)1.61%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.85 | ||
| P/FCF | 6.1 | ||
| P/OCF | 3.4 | ||
| P/B | 1.15 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 1.5 |
EPS(TTM)1.43
EY13.65%
EPS(NY)1.6
Fwd EY15.3%
FCF(TTM)1.72
FCFY16.39%
OCF(TTM)3.08
OCFY29.43%
SpS12.33
BVpS9.12
TBVpS7.24
PEG (NY)0.67
PEG (5Y)0.76
Graham Number17.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 14.88% | ||
| ROCE | 27.62% | ||
| ROIC | 21.73% | ||
| ROICexc | 23.17% | ||
| ROICexgc | 25.99% | ||
| OM | 38.12% | ||
| PM (TTM) | 11.01% | ||
| GM | 51.55% | ||
| FCFM | 13.93% |
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%
ROICexgc growth 3Y-6.67%
ROICexgc 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-Score8
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.88 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 125.73% | ||
| Cap/Sales | 11.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.28% | ||
| Profit Quality | 126.54% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.42 |
F-Score8
WACC6.76%
ROIC/WACC3.21
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)13.69%
EPS 3Y15.77%
EPS 5Y9.65%
EPS Q2Q%8.99%
EPS Next Y10.91%
EPS Next 2Y9.81%
EPS Next 3Y9.11%
EPS Next 5Y10.73%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y21.65%
Revenue growth 5Y26.94%
Sales Q2Q%5.67%
Revenue Next Year12.6%
Revenue Next 2Y9.65%
Revenue Next 3Y7.66%
Revenue Next 5Y7.08%
EBIT growth 1Y24.4%
EBIT growth 3Y41.5%
EBIT growth 5Y26.93%
EBIT Next Year24.39%
EBIT Next 3Y17.74%
EBIT Next 5YN/A
FCF growth 1Y43.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.66%
OCF growth 3YN/A
OCF growth 5YN/A
PAGSEGURO DIGITAL LTD-CL A / PAGS FAQ
What is the ChartMill fundamental rating of PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PAGS.
What is the valuation status for PAGS stock?
ChartMill assigns a valuation rating of 9 / 10 to PAGSEGURO DIGITAL LTD-CL A (PAGS). This can be considered as Undervalued.
How profitable is PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
PAGSEGURO DIGITAL LTD-CL A (PAGS) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
The Price/Earnings (PE) ratio for PAGSEGURO DIGITAL LTD-CL A (PAGS) is 7.33 and the Price/Book (PB) ratio is 1.15.
What is the expected EPS growth for PAGSEGURO DIGITAL LTD-CL A (PAGS) stock?
The Earnings per Share (EPS) of PAGSEGURO DIGITAL LTD-CL A (PAGS) is expected to grow by 10.91% in the next year.