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PicS N.V. Class A
(NASDAQ:PICS)
Select Model
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Rating:57Neutral
Price Target:
$11.00
▲(3.68% Upside)
Action:Reiterated
Date:08/27/26
The score is primarily constrained by elevated balance-sheet risk and uneven cash-flow history despite improved TTM profitability. Technical indicators also point to weak near-term momentum (below key moving averages with negative MACD). These are partially offset by a low P/E valuation and a generally positive earnings call emphasizing growth, operating leverage, and reaffirmed guidance despite credit-quality headwinds.
Positive Factors
Revenue and Profit Growth
Rapid multi-year revenue expansion and materially improved TTM profitability indicate stronger operating scale. If sustained, this provides a broader earnings base and supports continued investment in products, distribution and growth initiatives.
Negative Factors
High Balance-Sheet Leverage
The sharp increase in leverage materially reduces financial flexibility and raises sensitivity to funding costs, credit losses and operating weakness. High debt relative to equity could constrain future growth or require greater capital retention.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Growth
Rapid multi-year revenue expansion and materially improved TTM profitability indicate stronger operating scale. If sustained, this provides a broader earnings base and supports continued investment in products, distribution and growth initiatives.
Read all positive factors
PicS N.V. Class A (PICS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)4.7
Beta (1Y)3.20
Revenue Growth88.54%
EPS Growth-100.00%
CountryUS
Employees4,644
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)11.70
Shares Outstanding43,135,918
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.87
Price to Sales (P/S)1.77
P/FCF Ratio-2.51
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
$18.50Price Target Upside74.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.49
Revenue Forecast (FY)$2.69B
PicS N.V. Class A Business Overview & Revenue Model
Company Description
PicS N.V., a subsidiary of Jf International B.v. and formerly known as Picpay Holdings Netherlands B.V., is a prominent digital financial services provider based in São Paulo, Brazil. Established in 2012, the company offers a comprehensive digital...
PicS N.V. Class A Earnings Call Summary
Earnings Call Date:Aug 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 04, 2026
Earnings Call Sentiment Positive
The call presented materially positive operational and financial execution: strong revenue and profitability beats, significant monetization gains (ARPAC +52% YoY), operating leverage and AI-driven productivity, rapid growth in secured credit and noncredit revenue streams, and strategic completion of Kovr (KEV). The main headwinds are credit metrics driven by portfolio aging and deliberate incremental risk-taking in private payroll loans (higher NPL >90 days and Stage 3, modestly higher cost of risk and provisions), a temporary compression in Stage 3 coverage due to renegotiation mix, and a slight uptick in funding cost. Management provided reassuring context (provisioning coverage, Desenrola impact, capital headroom, guidance) and expects continued revenue and pretax earnings growth, with some Q3 net income normalization due to tax timing. On balance the positives around growth, profitability and diversification outweigh the portfolio-aging and intentional risk-taking challenges.Positive Updates
Top-line outperformance and strong revenue growth
Total revenues BRL 4.1 billion, up 67% year-over-year and 17% quarter-over-quarter; managerial revenues (ex-derivatives/hedge accounting) BRL 3.7 billion, up 59% year-over-year and 17% sequentially; revenues beat guidance (~3.6% above guidance).
Negative Updates
Higher late-stage delinquency metrics
NPL >90 days increased to 9.8% in the quarter and Stage 3 rose to 12.9%; management attributes this mainly to portfolio aging and deliberate incremental risk in private payroll loans, but levels remain elevated vs earlier vintages.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line outperformance and strong revenue growth
Total revenues BRL 4.1 billion, up 67% year-over-year and 17% quarter-over-quarter; managerial revenues (ex-derivatives/hedge accounting) BRL 3.7 billion, up 59% year-over-year and 17% sequentially; revenues beat guidance (~3.6% above guidance).
Read all positive updates
Company Guidance
PicPay's Q3 2026 stand‑alone guidance (ex‑Kovr) calls for a total credit portfolio of ~BRL 34.7 billion; quarterly cost of risk of 3.9%–4.1%; managerial revenues of ~BRL 4.0 billion and net interest income of ~BRL 2.1 billion; gross profit of ~BRL 1.3 billion; IFRS earnings before taxes of ~BRL 360 million (≈+34% sequential) and adjusted EBT of ~BRL 378 million (≈+30% q/q); IFRS net income of ~BRL 255 million (≈‑5% q/q) and adjusted net income of ~BRL 265 million (≈‑6% q/q), with the sequential net income decline reflecting normalization after a concentrated Lei do Bem tax benefit in Q2. Management also reiterated funding and capital context (funding cost expected around ~95% of CDI and year‑end total capital ratio ≈14% with CET1 ≈12.0%–12.5%) and noted Kovr (KEV) is excluded from Q3 guidance but is expected to contribute roughly BRL 80–100 million of net income from August–December 2026.PicS N.V. Class A Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
38
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.30B | 6.28B | 5.19B | 3.07B | 3.02B | 1.22B |
| Gross Profit | 8.18B | 6.28B | 2.89B | 1.85B | 1.76B | 778.36M |
| EBITDA | 2.16B | 0.00 | 638.88M | 171.12M | -624.50M | -1.85B |
| Net Income | 1.34B | 1.09B | 217.57M | 34.52M | -45.69M | -1.56B |
Balance Sheet | ||||||
| Total Assets | 52.09B | 41.99B | 27.32B | 15.78B | 12.16B | 9.70B |
| Cash, Cash Equivalents and Short-Term Investments | 5.42B | 6.68B | 5.88B | 7.10B | 964.32M | 2.01B |
| Total Debt | 35.82B | 860.73M | 757.89M | 58.65M | 52.95M | 2.25B |
| Total Liabilities | 45.79B | 38.10B | 25.55B | 14.58B | 11.00B | 9.32B |
| Stockholders Equity | 6.30B | 3.87B | 1.61B | 1.31B | 1.27B | 239.88M |
Cash Flow | ||||||
| Free Cash Flow | 2.68B | -4.42B | 1.71B | 1.06B | 7.12B | -2.75B |
| Operating Cash Flow | 3.19B | -3.74B | 2.29B | 1.57B | 7.34B | -2.51B |
| Investing Cash Flow | -4.45B | -684.34M | -2.53B | -537.08M | -63.23M | -298.68M |
| Financing Cash Flow | 2.35B | 815.41M | 327.15M | -12.24M | -1.06B | 2.84B |
PicS N.V. Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.64B | 14.05 | 660.95% | ― | 7.50% | 18.20% | |
70 Outperform | $7.56B | 19.12 | -23.53% | ― | -0.05% | 9.77% | |
64 Neutral | $3.60B | -23.24 | 28.08% | ― | 14.18% | -218.58% | |
64 Neutral | $945.83M | -44.06 | -24.09% | ― | 13.85% | 61.09% | |
57 Neutral | $1.41B | 4.67 | 31.23% | ― | 88.54% | -100.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $233.40M | -17.19 | -164.67% | ― | -0.23% | 33.15% |
* General Sector Average
PICS
PicS N.V. Class A
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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.