PagSeguro Digital Ltd.
PagSeguro Digital Ltd. Fundamental Analysis
PagSeguro Digital Ltd. (PAGS) shows strong financial fundamentals with a PE ratio of 6.74, profit margin of 10.73%, and ROE of 14.40%. The company generates $20.4B in annual revenue with strong year-over-year growth of 16.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PAGS's fundamental strength across five key dimensions:
Efficiency Score
WeakPAGS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPAGS trades at attractive valuation levels.
Growth Score
ExcellentPAGS delivers strong and consistent growth momentum.
Financial Health Score
ModeratePAGS shows balanced financial health with some risks.
Profitability Score
WeakPAGS struggles to sustain strong margins.
Key Financial Metrics
Is PAGS Expensive or Cheap?
P/E Ratio
PAGS trades at 6.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PAGS's PEG of -0.52 indicates potential undervaluation.
Price to Book
The market values PagSeguro Digital Ltd. at 0.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.98 times EBITDA. This is generally considered low.
How Well Does PAGS Make Money?
Net Profit Margin
For every $100 in sales, PagSeguro Digital Ltd. keeps $10.73 as profit after all expenses.
Operating Margin
Core operations generate 37.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.40 in profit for every $100 of shareholder equity.
ROA
PagSeguro Digital Ltd. generates $2.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PagSeguro Digital Ltd. produces operating cash flow of $2.71B, showing steady but balanced cash generation.
Free Cash Flow
PagSeguro Digital Ltd. produces free cash flow of $726.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.46 in free cash annually.
FCF Yield
PAGS converts 4.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How PAGS Stacks Against Its Sector Peers
| Metric | PAGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.74 | 34.43 | Better (Cheaper) |
| ROE | 14.40% | 1135.00% | Weak |
| Net Margin | 10.73% | -134808.00% (disorted) | Strong |
| Debt/Equity | 3.03 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1.36 | 5.77 | Neutral |
| ROA | 2.86% | -310795.00% (disorted) | Weak |
PAGS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PagSeguro Digital Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
237.42%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
59.18%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-817.44%
Industry Style: Growth, Innovation, High Beta
Declining