PagSeguro Digital Ltd. (PAGS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Constellium SE

First Advantage Corp.

CBIZ, Inc.

ABM Industries, Inc.

PagSeguro Digital Ltd.

Payoneer Global, Inc.

Huron Consulting Group, Inc.

Fortrea Holdings, Inc.

ICF International, Inc.

Laureate Education, Inc.

LegalZoom.com, Inc.

Why is PagSeguro Digital Ltd. ?

High Management Efficiency with a high ROCE of 19.19%

Healthy long term growth as Net Sales has grown by an annual rate of 20.75% and Operating profit at 24.38%

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 176.08
DEBT-EQUITY RATIO (HY) Highest at 246.42 %
DEBTORS TURNOVER RATIO(HY) Lowest at 0.34 times

With ROCE of 13.13%, it has a attractive valuation with a 1.03 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.94%, its profits have risen by 7.5% ; the PEG ratio of the company is 1.6

Market Beating Performance

The stock has generated a return of 43.94% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PagSeguro Digital Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PagSeguro Digital Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PagSeguro Digital Ltd.

-4.65%

-0.28

51.20%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.18%

EBIT Growth (5y)

31.35%

EBIT to Interest (avg)

4.31

Debt to EBITDA (avg)

1.68

Net Debt to Equity (avg)

2.26

Sales to Capital Employed (avg)

0.42

Tax Ratio

9.68%

Dividend Payout Ratio

0.01%

Pledged Shares

Institutional Holding

99.52%

ROCE (avg)

19.19%

ROE (avg)

12.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.10

EV to EBIT

7.37

EV to EBITDA

5.93

EV to Capital Employed

1.03

EV to Sales

2.77

PEG Ratio

Dividend Yield

ROCE (Latest)

13.96%

ROE (Latest)

14.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 23,539.49 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 0.07%

RAW MATERIAL COST(Y)

Fallen by -3.42% (YoY

NET PROFIT(Q)

Highest at USD 103.79 MM

EPS(Q)

Highest at USD 0.37

-10What is not working for the Company

INTEREST(HY)

At USD 510.09 MM has Grown at 31.32%

DEBT-EQUITY RATIO (HY)

Highest at 272.05 %

INTEREST COVERAGE RATIO(Q)

Lowest at 167.68

Here's what is working for PagSeguro Digital Ltd.

Inventory Turnover Ratio

Highest at 23,539.49 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Highest at USD 103.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend Payout Ratio

Highest at 0.07%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 87.87 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for PagSeguro Digital Ltd.

Interest Coverage Ratio

Lowest at 167.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 510.09 MM has Grown at 31.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 272.05 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at USD 0.28 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income