PAGS

PagSeguro Digital

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NYSE

County of HQ

Brazil

Next Earnings Date

05/13/26

Business Summary

PagSeguro Digital operates a digital payments and financial services ecosystem, monetizing transaction volume through merchant acquiring, payment processing, and related financial tools. Its cash generation is driven by scale in transaction flows, where incremental volume drops through a largely fixed-cost infrastructure base, supporting its 14.90% operating margin. The moat, when functioning properly, comes from merchant integration, embedded financial services, and switching costs tied to payment hardware and software ecosystems. If it maintains scale and customer stickiness while earning a 12.60% ROIC, the platform can compound value—provided balance sheet risk does not erode that advantage.

VALUATION

P/E

7.7

Market Cap ($M USD)

$2,982

Forward P/E

1.1

PEG

0.1

PRICE TO SALES

2

PRICE TO BOOK

1

EV / EBITDA

5.9

5-Year Average P/E

DIVIDEND

Yield

1.30%

Annual Payout

$1.04

Payout Ratio

10.80%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.43

Next Year EPS Growth Estimate

$9.73

Next Year Revenue Growth Estimate

4.50%

Return on Equity (ROE)

14.90%

Operating Margin

-51.20%

Debt-to-Equity

2.8

Piotroski F-Score

5

Altman Z-Score

0.6

Return on Invested Capital (ROIC)

12.60%%

Current Ratio

1.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 7.7x earnings and an absurdly compressed 1.1 forward P/E, the market is pricing PagSeguro Digital as if earnings are about to collapse or the balance sheet is impaired. A PEG Forward of 0.1 typically signals extreme undervaluation relative to growth expectations, yet the Altman Z-Score of 0.6 is deep in distress territory, which explains the discount. This is a classic high-risk deep value setup: statistically cheap on earnings and sales (2x sales, 1x book), but carrying material balance sheet and stability concerns that the market clearly does not trust.

AI Exposure / Tech Reliance

As a Software - Infrastructure company, PagSeguro operates in a segment directly exposed to automation, payments digitization, and AI-driven financial analytics. Infrastructure software firms that integrate AI into fraud detection, underwriting, and transaction optimization can materially enhance margins over time. The key question is whether its current 14.90% operating margin can expand through automation efficiencies or whether competitive pressure will compress it.

The Bull Case

From a pure value and GARP perspective, there is tangible appeal here. A 12.60% ROIC comfortably above many capital costs suggests the core business is still generating real economic returns, while a 14.90% operating margin indicates a scalable platform rather than a commoditized processor. The Piotroski F-Score of 5 is neutral but not distressed, reinforcing that this is not a collapsing enterprise. Add in a 2.8 TTM yield with a 1.30% dividend per share and a modest payout ratio of 1.04, and you have a company returning capital while trading at just 7.7x earnings and 1x book—levels that often precede multiple expansion if stability improves.

The Bear Case

Now the problems. The Altman Z-Score of 0.6 is a flashing red light for financial distress risk, and the Debt/Equity of -51.20% signals a highly unconventional capital structure that demands scrutiny. EPS is 5.9, yet EPS Next Year is estimated at $1.43, implying a dramatic earnings contraction that may justify the low 1.1 forward P/E if forecasts are unstable. Institutional ownership at $11.44 and a Consensus Rating of 14.60% suggest weak conviction from professional capital, and a Current Ratio of 1.4 is adequate but hardly fortress-like given the distress signal.

Market Sentiment & Smart Money

Short Interest %

14.60%

Analyst Consensus

2.4

Average Analyst Price Target

$11.44

Institutional Ownership %

66.20%

1-Year Beta

1.7

Insider Buying % (6 Mo)

1.00%%

Distance to 52-Week High

86.60%%

Distance to 52-Week Low

137.90%%