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

Laureate Education, Inc.

CBIZ, Inc.

PagSeguro Digital Ltd.

Huron Consulting Group, Inc.

ABM Industries, Inc.

Payoneer Global, Inc.

ICF International, Inc.

Fortrea Holdings, Inc.

First Advantage Corp.

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.

19.01%

-0.28

51.20%

S&P 500

14.9%

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)

21.92%

EBIT Growth (5y)

29.89%

EBIT to Interest (avg)

4.31

Debt to EBITDA (avg)

1.68

Net Debt to Equity (avg)

2.26

Sales to Capital Employed (avg)

0.45

Tax Ratio

9.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

78.60%

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

1.05

EV to EBIT

7.96

EV to EBITDA

6.36

EV to Capital Employed

1.01

EV to Sales

2.88

PEG Ratio

7.54

Dividend Yield

ROCE (Latest)

12.74%

ROE (Latest)

13.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,060.64 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 609.67 times

OPERATING PROFIT(Q)

Highest at USD 430.25 MM

OPERATING PROFIT MARGIN(Q)

Highest at 47.69 %

RAW MATERIAL COST(Y)

Fallen by -7.35% (YoY

CASH AND EQV(HY)

Highest at USD 2,221.53 MM

NET SALES(Q)

Highest at USD 902.19 MM

PRE-TAX PROFIT(Q)

Highest at USD 116.8 MM

EPS(Q)

Highest at USD 0.35

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 168.05

DEBT-EQUITY RATIO (HY)

Highest at 249.08 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.33 times

INTEREST(Q)

Highest at USD 256.02 MM

Here's what is working for PagSeguro Digital Ltd.

Operating Profit

Highest at USD 430.25 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 47.69 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 609.67 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

Operating Cash Flow

Highest at USD 1,060.64 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 902.19 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 116.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 2,221.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -7.35% (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 84.04 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 168.05 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 256.02 MM has Grown at 13.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 249.08 % 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

Debtors Turnover Ratio

Lowest at 0.33 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at USD 256.02 MM

in the last five periods and Increased by 13.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Non Operating Income

Highest at USD 0.23 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income