Pagseguro Digital (PAGS)
NYSE:PAGS
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Pagseguro Digital
(NYSE:PAGS)
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Rating:60Neutral
Price Target:
$10.50
▲(6.49% Upside)
Action:DowngradedDate:03/06/26
The score is anchored by attractive valuation (low P/E) and solid profitability/client and banking-segment growth, but is held back by elevated leverage and inconsistent cash flow, with weak technical momentum and a downward revision to profit guidance adding caution.
Positive Factors
Banking revenue and deposit growth
Rapid banking revenue growth and a larger deposit base materially diversify PagSeguro’s economics away from pure acquiring. Higher-yield banking income and deposits can lower funding costs, support higher-margin cross-sell of credit and payment services, and create a more stable funding runway over months to years.
Negative Factors
Elevated leverage
Significantly higher leverage reduces financial flexibility and heightens sensitivity to interest-rate moves. With debt-to-equity well above prior years, incremental rate increases or funding shocks could raise financial costs, constrain strategic investment, and pressure margins and credit capacity over ensuing quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Banking revenue and deposit growth
Rapid banking revenue growth and a larger deposit base materially diversify PagSeguro’s economics away from pure acquiring. Higher-yield banking income and deposits can lower funding costs, support higher-margin cross-sell of credit and payment services, and create a more stable funding runway over months to years.
Read all positive factors
Pagseguro Digital (PAGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.81B
Dividend Yield1.4%
Average Volume (3M)4.12M
Price to Earnings (P/E)7.5
Beta (1Y)1.03
Revenue Growth0.58%
EPS Growth5.76%
CountryUS
Employees6,751
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.44
Shares Outstanding170,522,030
10 Day Avg. Volume3,261,144
30 Day Avg. Volume4,121,997
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)1.07
Price to Sales (P/S)0.81
P/FCF Ratio10.03
Enterprise Value/Market Cap20.45
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit5.70
Enterprise Value/Ebitda6.16
Forecast
1Y Price Target
$12.12Price Target Upside22.92% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)8.62
Revenue Forecast (FY)$20.23B
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'...
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, th...
Pagseguro Digital Key Performance Indicators (KPIs)
Any
Total Payment Volume
Measures the total value of transactions processed, indicating the scale of operations and market penetration. A higher volume suggests strong customer engagement and potential for revenue growth.
Measures the total value of transactions processed, indicating the scale of operations and market penetration. A higher volume suggests strong customer engagement and potential for revenue growth.
Data provided by:
The Fly
The FlyPagseguro Digital Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Neutral
PagSeguro demonstrated strong client and revenue growth, especially in the banking segment, while also maintaining a disciplined approach to costs and capital return. However, challenges remain with stable payment volumes and the impact of high interest rates, leading to a downward revision of profit guidance.Positive Updates
Client Growth
PagSeguro ended the quarter with 33.7 million clients, adding 1.6 million clients year over year.
Negative Updates
Flat Payment Volume
Total payment volume remained stable sequentially at BRL 130 billion, with acquiring TPV falling around 5% year over year.
Read all updates
Q3-2025 Updates
Positive
Negative
Client Growth
PagSeguro ended the quarter with 33.7 million clients, adding 1.6 million clients year over year.
Read all positive updates
Company Guidance
During the PagSeguro Digital Ltd. earnings call for Q3 2025, the company reported several key metrics reflecting its performance and strategic direction. The client base expanded to 33.7 million, adding 1.6 million clients year over year. Total payment volume remained stable at BRL 130 billion, while the credit portfolio grew 30% year over year, with a focus on working capital loans. Total net revenue, excluding interchange and card scheme fees, increased by 14% to BRL 3.4 billion, and non-GAAP net income remained flat year over year, with diluted EPS up by 1.814%. The company also returned BRL 2 billion to shareholders through dividends and share repurchases, and its banking business now contributes significantly to gross profit. Despite economic challenges, PagSeguro adjusted its gross profit growth guidance for 2025 to 5%-7%, while maintaining a focus on capital efficiency and long-term value creation.Pagseguro Digital Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
39
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.36B | 18.33B | 15.68B | 15.16B | 10.30B |
| Gross Profit | 9.79B | 8.79B | 7.55B | 7.69B | 4.52B |
| EBITDA | 9.04B | 7.54B | 6.64B | 6.19B | 2.89B |
| Net Income | 2.08B | 2.12B | 1.65B | 1.50B | 1.17B |
Balance Sheet | |||||
| Total Assets | 74.37B | 72.90B | 55.11B | 45.33B | 5.58B |
| Cash, Cash Equivalents and Short-Term Investments | 6.72B | 1.42B | 6.21B | 2.93B | 462.66M |
| Total Debt | 44.34B | 40.64B | 16.38B | 12.00B | 755.30M |
| Total Liabilities | 59.74B | 58.23B | 41.87B | 33.49B | 3.69B |
| Stockholders Equity | 14.63B | 14.67B | 13.24B | 11.84B | 1.89B |
Cash Flow | |||||
| Free Cash Flow | 1.55B | -5.74B | 2.01B | 1.41B | -853.82M |
| Operating Cash Flow | 2.57B | -3.42B | 4.00B | 3.55B | 898.01M |
| Investing Cash Flow | -2.25B | -1.83B | -2.70B | -2.18B | -1.47B |
| Financing Cash Flow | -443.29M | 3.27B | -225.99M | -1.33B | 727.24M |
Pagseguro Digital Technical Analysis
Negative
9.86
Price Trends
10.51
Negative
10.11
Negative
9.49
Positive
Market Momentum
-0.18
Negative
46.76
Neutral
77.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAGS, the sentiment is Negative. The current price of 9.86 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 10.51, and above the 200-day MA of 9.49, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAGS.
Pagseguro Digital Risk Analysis
Pagseguro Digital disclosed 66 risk factors in its most recent earnings report. Pagseguro Digital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pagseguro Digital Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.62B | 18.77 | 38.09% | ― | 22.02% | 12.42% | |
71 Outperform | $1.65B | 27.73 | 9.84% | ― | 10.58% | -45.52% | |
68 Neutral | $2.56B | 11.26 | 23.78% | ― | 7.25% | -1.12% | |
62 Neutral | $1.70B | -393.70 | -1.62% | ― | 20.11% | -391.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.81B | 7.50 | 14.40% | 1.40% | 0.58% | 5.76% | |
50 Neutral | $3.65B | 9.51 | 19.67% | ― | -25.51% | -139.31% |
* Technology Sector Average
PAGS
Pagseguro Digital
9.65
2.13
28.34%
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Pagseguro Digital Corporate Events
PagSeguro Digital posts higher Q4 2025 revenue and non-GAAP ROE as PagBank leans on banking and efficiency
Mar 4, 2026
PagBank reported its fourth-quarter and full-year 2025 results on March 4, 2026, showing it continues to expand in Brazil’s competitive fintech and acquiring market despite a challenging macro backdrop. The company grew total clients to 34 m...
PagSeguro Digital Gains Clean Audit and Confirms Effective 2025 Internal Controls
Mar 4, 2026
PagSeguro Digital reported that its management has assessed the company’s internal control over financial reporting and concluded that these controls were effective as of December 31, 2025, in line with the COSO 2013 framework. The report, s...
PagSeguro Digital Announces Special Cash Dividend of US$0.12 per Share
Dec 30, 2025
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 ...
PagSeguro Digital Shareholders Approve New Board Appointments Effective January 1, 2026
Dec 22, 2025
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 J...
PagSeguro Digital Returns R$509 Million to Shareholders in November 2025
Dec 11, 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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.