Pagseguro Digital (PAGS) AI Stock Analysis

• Market Cap: $3.39B
• Dividend Yield: 1.4%
• Average Volume (3M): 3.54M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.02
• Revenue Growth: 0.58%
• EPS Growth: 5.76%
• Country: US
• Employees: 6,751
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.36
• Shares Outstanding: 209,148,910
• 10 Day Avg. Volume: 2,799,855
• 30 Day Avg. Volume: 3,540,732
• PEG Ratio: 0.19
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -2.73
• Enterprise Value/Market Cap: 16.49
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $10.80
• Price Target Upside: 3.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $12.50 ▲(19.85% Upside)

Pagseguro Digital's strong financial performance and bullish technical indicators are the primary drivers of its high score. The company's attractive valuation further supports its investment appeal. However, economic challenges reflected in the earnings call, such as stable payment volumes and high interest rates, slightly temper the overall score.

Positive Factors

Revenue Growth

The 14% revenue growth indicates strong demand for Pagseguro's services, reinforcing its market position and supporting long-term expansion.

Banking Segment Expansion

Significant growth in the banking segment diversifies revenue streams and enhances profitability, contributing to sustainable business growth.

Leadership Changes

Leadership changes can bring fresh strategic perspectives, potentially enhancing operational efficiency and market positioning in the long term.

Negative Factors

High Debt Levels

High leverage can constrain financial flexibility and increase risk, potentially impacting long-term financial stability and growth opportunities.

Interest Rate Impact

Rising financial costs from high interest rates can pressure margins and profitability, challenging the company's ability to maintain growth.

Stable Payment Volume

Stable payment volumes suggest limited growth in core transaction processing, potentially hindering revenue expansion in the near term.

Pagseguro Digital Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Pagseguro generates revenue through multiple streams, primarily by charging transaction fees on payment processing services provided to merchants. When businesses use Pagseguro's platform to process credit card, debit card, and online payments, the company takes a percentage of each transaction as a fee. Additionally, Pagseguro earns revenue from providing financial services, such as loans and credit products to small and medium-sized enterprises (SMEs) and consumers. The company may also generate income through its subscription services, which offer enhanced features and tools for merchants. Key partnerships with banks, financial institutions, and e-commerce platforms further bolster its revenue, while the growing adoption of digital payments in Brazil and the region contributes significantly to its earnings growth.

Pagseguro Digital Financial Statement Overview

Summary

Pagseguro Digital exhibits strong revenue growth and profitability with a solid gross profit margin of 50.04% and an EBIT margin of 36.49%. However, the high debt-to-equity ratio of 2.81 poses a risk, and the slight decline in net profit margin suggests potential cost pressures.

Income Statement

Pagseguro Digital shows strong revenue growth with a TTM increase of 9.4% and consistent profitability, evidenced by a solid gross profit margin of 50.04% and an EBIT margin of 36.49%. The net profit margin is stable at 11.35%, indicating efficient cost management. However, the slight decline in net profit margin compared to previous years suggests potential cost pressures.

Balance Sheet

The company has a high debt-to-equity ratio of 2.81, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is strong at 14.99%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Pagseguro Digital demonstrates impressive free cash flow growth of 1607.20% TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.11, indicating potential challenges in converting income to cash. However, the free cash flow to net income ratio is healthy at 0.62, suggesting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.52B	18.33B	15.68B	15.16B	10.30B	6.69B
Gross Profit	9.77B	8.79B	7.55B	7.69B	4.52B	2.91B
EBITDA	8.89B	7.54B	6.64B	6.19B	2.89B	2.11B
Net Income	2.22B	2.12B	1.65B	1.50B	1.17B	1.29B
Balance Sheet
Total Assets	72.29B	72.90B	55.11B	45.33B	5.58B	4.30B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.42B	6.21B	2.93B	462.66M	504.39M
Total Debt	41.85B	40.64B	16.38B	12.00B	755.30M	161.36M
Total Liabilities	57.40B	58.23B	41.87B	33.49B	3.69B	2.50B
Stockholders Equity	14.89B	14.67B	13.24B	11.84B	1.89B	1.79B
Cash Flow
Free Cash Flow	3.13B	-5.74B	2.01B	1.41B	-853.82M	106.11M
Operating Cash Flow	5.03B	-3.42B	4.00B	3.55B	898.01M	2.15B
Investing Cash Flow	-1.88B	-1.83B	-2.70B	-2.18B	-1.47B	-1.86B
Financing Cash Flow	-2.44B	3.27B	-225.99M	-1.33B	727.24M	-55.06M

Pagseguro Digital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAGS, the sentiment is Positive. The current price of 10.43 is above the 20-day moving average (MA) of 9.82, above the 50-day MA of 9.80, and above the 200-day MA of 9.06, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 76.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAGS.

Pagseguro Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAGS	80 Outperform	$3.39B	7.97	14.28%	1.40%	0.58%	5.76%
DLO	73 Outperform	$4.22B	24.25	―	―	22.02%	12.42%
PAYO	69 Neutral	$1.94B	28.62	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$3.17B	10.81	23.10%	―	7.25%	-1.12%
MQ	66 Neutral	$2.08B	-58.32	-4.10%	―	20.11%	-391.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STNE	51 Neutral	$4.04B	-29.14	-7.53%	―	-25.51%	-139.31%

Pagseguro Digital Corporate Events

PagSeguro Digital Announces Special Cash Dividend of US$0.12 per Share

On December 30, 2025, PagSeguro Digital Ltd. announced that its Board of Directors has approved a special cash dividend of US$0.12 per common share. The dividend is scheduled to be paid on February 27, 2026 to shareholders of record as of January 28, 2026, with the payout still subject to market conditions and the company’s financial position, underscoring the board’s discretionary control over future dividend decisions and signaling a distribution of capital that may be viewed as a return of value to shareholders.

The most recent analyst rating on (PAGS) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.

PagSeguro Digital Shareholders Approve New Board Appointments Effective January 1, 2026

At an extraordinary general meeting held on December 19, 2025, in São Paulo, PagSeguro Digital’s shareholders approved the appointment of Alexandre Magnani and Artur Schunck as directors of the company, with their mandates to begin on January 1, 2026 and extend until the next annual general meeting or until successors are chosen. The meeting, chaired by director Maria Judith de Brito in the absence of the chairman and vice-chairman, confirmed that quorum requirements were met through shareholders represented by proxy, and authorized Conyers Trust Company (Cayman) Limited to update the official register of directors and officers and notify the Cayman Registrar of Companies, signaling an upcoming refresh of the company’s board composition that may influence its governance and strategic direction.

The most recent analyst rating on (PAGS) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.

PagSeguro Digital Returns R$509 Million to Shareholders in November 2025

In November 2025, PagSeguro Digital Ltd. returned R$509 million to its shareholders through cash dividends and share repurchases, as part of a program approved by its Board of Directors. The company also announced plans to distribute an additional R$1.4 billion in cash dividends in 2026, underscoring its commitment to sustainable shareholder returns through disciplined capital allocation and prudent financial management.

The most recent analyst rating on (PAGS) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.

PagSeguro Digital Announces Executive Leadership Changes

On November 12, 2025, PagSeguro Digital Ltd. announced changes in its senior management, with Carlos Mauad appointed as the new Chief Executive Officer and Gustavo Bahia Gama Sechin as the Chief Financial Officer and Chief Accounting Officer, effective January 1, 2026. These appointments follow the stepping down of current executives Alexandre Magnani and Artur Schunck, who will be proposed for positions on the company’s Board of Directors. This leadership transition is expected to influence PagSeguro’s strategic direction and potentially impact its market positioning within the Brazilian financial technology sector.

The most recent analyst rating on (PAGS) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.

PagSeguro Digital Announces Extraordinary General Meeting for Director Elections

PagSeguro Digital Ltd. has announced an Extraordinary General Meeting scheduled for December 19, 2025, in São Paulo, Brazil. The meeting will address the election of Mr. Alexandre Magnani and Mr. Artur Schunck as directors, effective January 1, 2026, until the next Annual General Meeting. This meeting is significant as it will influence the company’s leadership structure, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (PAGS) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.

PagSeguro Digital Reports Q3 2025 Financial Results

PagSeguro Digital Ltd. released its unaudited condensed consolidated interim financial statements for the period ending September 30, 2025. The financial report highlights a decrease in total assets from December 31, 2024, to September 30, 2025, alongside a reduction in liabilities, indicating a shift in the company’s financial structure. The report provides insights into the company’s financial health, which could impact its market positioning and stakeholder confidence.

The most recent analyst rating on (PAGS) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.

PagSeguro Digital Announces Strong Q3 2025 Results and Strategic Goals

PagSeguro Digital Ltd. reported its third-quarter results for 2025, highlighting a 14% year-over-year increase in consolidated revenues, driven by its banking segment and strategic repricing. Despite challenges from high interest rates and low economic activity, the company managed to maintain profitability through financial discipline and operational efficiency. The company also announced long-term goals, including a target credit portfolio of R$25 billion by 2029, and plans to return over R$5.5 billion to shareholders by the end of 2026, reinforcing its commitment to sustainable growth and shareholder value.

The most recent analyst rating on (PAGS) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Pagseguro Digital stock, see the PAGS Stock Forecast page.