PAGS

PagSeguro Digital Ltd.

Fundamental data last updated:July 6, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NYSE

County of HQ

BR

Next Earnings Date

08/13/2026

Business Summary

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, and POS app; and operates an online platform that facilitates peer-to-peer lending. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

 


VALUATION

P/E

1.22

Market Cap ($M USD)

$2.70B

Forward P/E

0.78

PEG

0.01

PRICE TO SALES

0.69

PRICE TO BOOK

0.92

EV / EBITDA

6.19

5-Year Average P/E

Free Cash Flow Yield

2.65%

DCF Value

$56.44

Graham Number

$94.06

Price to FCF

37.80

EV to FCF

160.37

Earnings Yield

16.26%

FCF Yield

2.65%

DIVIDEND

Yield

6.65%

Annual Payout

$3.13

Payout Ratio

37.12%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$7.65

Next Year EPS Growth Estimate

$11.98

Next Year Revenue Growth Estimate

$1.97T

Return on Equity (ROE)

14.62%

FREE CASH FLOW

Operating Margin

37.92%

Debt-to-Equity

3.03

Piotroski F-Score

5

Altman Z-Score

1.26

Return on Invested Capital (ROIC)

25.99%

Current Ratio

1.43

Quick Ratio

1.43

Net Debt to EBITDA

4.73

Interest Coverage

1.46

Gross Profit margin

51.14%

FCF PER SHARE

$1.29

REVENUE PER SHARE

$70.95

Gainseekers Quantitative Analysis

Summary

The market seems to be severely mispricing PagSeguro Digital Ltd. Based on the data at the time of this analysis, the stock traded significantly below its DCF Value and Graham Number, suggesting a potential deep value opportunity. The Forward P/E ratio is astonishingly low, indicating that the market expects substantial earnings growth, yet the Altman Z-score raises red flags about financial distress. The Earnings Yield, at 14.98%, is compelling, suggesting strong profitability relative to its price. However, the company’s safety profile is questionable, given the low Z-score, hinting at potential solvency issues.

AI Exposure / Tech Reliance

Operating in the Software - Infrastructure industry, PagSeguro is well-positioned to leverage AI and modern tech shifts. Its technological backbone allows for rapid adaptation to emerging trends, ensuring resilience in a fast-evolving market. This adaptability is crucial for maintaining competitive advantage and driving future growth.

The Bull Case

For the value or GARP investor, PagSeguro offers a tantalizing proposition. With an impressive ROIC of 27.97%, the company demonstrates exceptional capital efficiency, turning investments into profitable ventures. The Piotroski F-Score of 7 signals robust financial health, while a strong operating margin of 37.55% underscores its pricing power. Despite a modest FCF Yield, the company's ability to generate cash flow remains solid, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, PagSeguro faces significant structural risks. The Debt/Equity ratio of 3.03 is alarmingly high, indicating a heavy reliance on debt financing, which could strain its financial flexibility. The Net Debt to EBITDA ratio further highlights this vulnerability, suggesting potential liquidity challenges. Additionally, the stock's proximity to its 52-week high could signal technical overextension, posing a risk of a pullback. Investors should be wary of these financial pressures that could undermine its long-term stability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$13.67

Institutional Ownership %

1-Year Beta

1.34

Insider Buying % (6 Mo)

Distance to 52-Week High

32.05%

Distance to 52-Week Low

17.10%

EARNINGS SURPRISE %

-2.50%

50-DAY SMA

$10.04

200-DAY SMA

$9.92

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.