Want to see PAGS full AI Analyst Report?
Top Page
Pagseguro Digital
(NYSE:PAGS)
Select Model
Select Model
Rating:62Neutral
Price Target:
$9.00
▼(-2.17% Downside)
Action:Reiterated
Date:08/18/26
The score is mainly supported by very attractive valuation (low P/E and high dividend yield) and a constructive earnings-call outlook with maintained guidance and solid operating KPIs. Offsetting these positives are mixed financial quality—especially weak and volatile cash flow with negative TTM free cash flow—and bearish technicals with the stock trading below key moving averages and negative momentum indicators.
Positive Factors
Deposit Franchise Growth
Rapid deposit growth strengthens PagBank’s low-cost, platform-linked funding base and supports continued lending expansion. High on-platform generation also deepens customer relationships, improving cross-selling and ecosystem economics.
Negative Factors
Weakening Revenue Trajectory
The contrast between payment activity and revenue growth suggests take-rate dilution, mix pressure, or tougher comparisons. Persistent monetization weakness could limit operating leverage and make future earnings growth more dependent on credit and cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit Franchise Growth
Rapid deposit growth strengthens PagBank’s low-cost, platform-linked funding base and supports continued lending expansion. High on-platform generation also deepens customer relationships, improving cross-selling and ecosystem economics.
Read all positive factors
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 (PAGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.38B
Dividend Yield7.35%
Average Volume (3M)3.12M
Price to Earnings (P/E)5.8
Beta (1Y)0.84
Revenue Growth11.04%
EPS Growth15.45%
CountryUS
Employees7,044
SectorTechnology
Sector Strength88
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)7.54
Shares Outstanding157,057,270
10 Day Avg. Volume2,891,645
30 Day Avg. Volume3,119,027
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)1.07
Price to Sales (P/S)0.81
P/FCF Ratio10.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.12Price Target Upside10.00% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)8.45
Revenue Forecast (FY)$21.06B
Pagseguro Digital Business Overview & Revenue Model
Company Description
PagSeguro Digital Ltd., together with its subsidiaries, engages in the provision of financial and payment solutions for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. It pr...
How the Company Makes Money
PagSeguro makes money mainly by monetizing payment flows and related financial services within its ecosystem. (1) Payment acquiring and processing fees: The company earns revenue when merchants process card and other payments through PagSeguro’s a...
Pagseguro Digital Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial strengths: continued TPV expansion, rapid on‑balance credit growth (+31% YoY), strong deposit inflows (+15% YoY), high product penetration gains, resilient profitability (EPS +10% YoY) and low NPLs (3.4%). Headwinds include a higher‑than‑expected interest‑rate environment pressuring financial costs, modest revenue growth relative to activity, an increase in credit losses as the portfolio scales, and near‑term expense items (World Cup, collective bargaining). Management emphasized disciplined execution, funding optimization and product rollout momentum, and expects to meet full‑year guidance (likely toward the lower end). On balance, operational momentum, asset quality and shareholder returns outweigh the macro and mix‑related headwinds.Positive Updates
Total Payment Volume (TPV) Growth
TPV reached BRL 133 billion, up 3% year‑over‑year, indicating continued reacceleration in payment activity.
Negative Updates
High Interest Rate Headwind
Selic remains higher than previously expected (management referenced market closer to 13.75%–14% vs. guidance assumption ~12.5%), creating pressure on financial results and uncertainty for the outlook.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Payment Volume (TPV) Growth
TPV reached BRL 133 billion, up 3% year‑over‑year, indicating continued reacceleration in payment activity.
Read all positive updates
Company Guidance
Management maintained 2026 guidance and reiterated delivery expectations while flagging macro uncertainty (they had assumed year‑end Selic ~12.5% but noted rates nearer 13.75–14%): key metrics include TPV BRL 133bn (+3% YoY), net revenue ex‑interchange BRL 3.4bn (+2% YoY), gross profit ~BRL 2.0bn (+3% YoY) with management saying it expects to reach the bottom of the full‑year gross‑profit guidance, total credit portfolio BRL 5.1bn (+31% YoY) and expanded credit BRL 52.4bn (+9% YoY), total deposits ~BRL 43bn (+15% YoY) and total funding BRL 47bn (+10% YoY), NPL90 at 3.4% (vs. industry 6.2%), recurring non‑GAAP net income BRL 576m (+2% YoY) and diluted non‑GAAP EPS BRL 2.06 (+10% YoY) with EPS guidance +9%–13% for 2026 (not assuming further buybacks), annualized non‑GAAP ROE 15.6%, adjusted Basel ratio 22.5% toward a 18–22% target, CapEx H1 BRL 1.1bn, dividends expected ~BRL 1.4bn in 2026 (third tranche BRL 0.28/share on Sept 30), ~BRL 2bn returned to shareholders last 12 months (≈13.4% yield) and ongoing funding‑cost improvements (nine consecutive quarters of reduction as a % of CDI).Pagseguro Digital Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.97B | 19.36B | 18.33B | 15.68B | 15.16B | 10.30B |
| Gross Profit | 7.34B | 9.79B | 8.79B | 7.55B | 7.69B | 4.52B |
| EBITDA | 9.83B | 9.40B | 7.71B | 6.64B | 6.02B | 3.05B |
| Net Income | 2.15B | 2.08B | 2.12B | 1.65B | 1.50B | 1.17B |
Balance Sheet | ||||||
| Total Assets | 75.70B | 74.37B | 72.90B | 55.11B | 45.33B | 5.58B |
| Cash, Cash Equivalents and Short-Term Investments | 1.39B | 6.72B | 1.42B | 6.21B | 2.93B | 462.66M |
| Total Debt | 46.61B | 44.34B | 40.64B | 16.38B | 12.00B | 755.30M |
| Total Liabilities | 60.68B | 59.74B | 58.23B | 41.87B | 33.49B | 3.69B |
| Stockholders Equity | 15.02B | 14.63B | 14.67B | 13.24B | 11.84B | 1.89B |
Cash Flow | ||||||
| Free Cash Flow | -565.50M | 1.55B | -5.74B | 2.01B | 1.41B | -853.82M |
| Operating Cash Flow | 653.83M | 2.57B | -3.42B | 4.00B | 3.55B | 898.01M |
| Investing Cash Flow | -2.43B | -2.25B | -1.83B | -2.70B | -2.18B | -1.47B |
| Financing Cash Flow | 347.43M | -443.29M | 3.27B | -225.99M | -1.33B | 727.24M |
Pagseguro Digital Technical Analysis
Negative
9.20
Price Trends
9.08
Negative
9.44
Negative
9.66
Negative
Market Momentum
-0.20
Positive
40.11
Neutral
15.43
Positive
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 9.2 is above the 20-day moving average (MA) of 9.10, above the 50-day MA of 9.08, and below the 200-day MA of 9.66, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.43 is Positive, 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 2 New Risks
1.
If we do not effectively and accurately meet our reporting obligations regarding nonfinancial information, including any climate-related information and ESG reporting that we provide publicly, our results of operations and our business may be adversely affected. Q4, 2023
2.
Man-made or natural disasters, including extreme weather conditions due to climate change (high temperatures, floods, thunderstorms) or other unexpected events could adversely affect networks, systems, infrastructure and service continuity. Q4, 2023
Pagseguro Digital Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $779.18M | 48.47 | 30.13% | ― | 46.84% | 125.24% | |
79 Outperform | $726.11M | 20.03 | 15.09% | 2.34% | 2.06% | 49.36% | |
72 Outperform | $2.98B | 25.12 | 7.08% | ― | 14.32% | 22.61% | |
71 Outperform | $2.29B | 69.37 | 4.08% | ― | 32.21% | 441.25% | |
71 Outperform | $15.01B | 24.85 | 27.43% | ― | 12.24% | -7.61% | |
62 Neutral | $2.38B | 5.81 | 14.60% | 6.61% | 11.04% | 15.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PAGS
Pagseguro Digital
8.62
0.29
3.48%
CASS
Cass Information Systems
56.40
14.17
33.56%
CBZ
CBIZ
54.66
-11.90
-17.88%
PAYS
Paysign
14.09
8.69
160.93%
FLYW
Flywire
19.54
6.72
52.42%
WSE
Wise PLC Class A
13.02
-1.83
-12.32%
Pagseguro Digital Corporate Events
PagSeguro Digital Reports Q2 2026 Unaudited Interim Financials
Aug 11, 2026
PagSeguro Digital has reported unaudited condensed consolidated interim financial statements for June 30, 2026, covering the three- and six-month periods ended June 30, 2026 and 2025. The filing shows total assets rising to R$75.7 billion from R$7...
PagSeguro Digital Posts Strong Q2 2026 Profit on Banking and Credit Growth
Aug 11, 2026
On August 11, 2026, PagBank reported second-quarter 2026 results showing modest top-line growth but stronger profitability, as non-GAAP net income rose to R$576 million and non-GAAP diluted EPS climbed nearly 10% year-on-year. The quarter was mark...
PagSeguro Digital Declares US$0.28 Cash Dividend for September 2026
Aug 11, 2026
On August 11, 2026, PagSeguro Digital announced that its board of directors approved a cash dividend of US$0.28 per common share. The payout is scheduled for September 30, 2026, to shareholders on record as of September 16, 2026, signaling a move ...
PagSeguro Digital Shareholders Approve 2025 Results, Incentive Plan and Board at May 27 AGM
May 29, 2026
At its annual general meeting held in São Paulo on May 27, 2026, PagSeguro Digital’s shareholders approved the audited consolidated financial statements for the year ended December 31, 2025 and ratified all actions taken by directors an...
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.