Last Updated: 16 Sep 2024
Executive Summary
PagSeguro Digital Ltd. (PAGS) is a leading provider of financial technology solutions in Brazil. The company has a strong track record of growth, with revenue increasing by 17.7% year-over-year in the latest quarter. PAGS is also profitable, with a net income margin of 11.2%. The company's stock is currently trading at a forward P/E ratio of 6.66, which is below the industry average. Analysts are bullish on PAGS, with a consensus rating of "Buy."
Company Overview
PagSeguro Digital Ltd. was founded in 2006 and is headquartered in São Paulo, Brazil. The company provides a range of financial services, including payment processing, lending, and insurance. PAGS has a large customer base of over 10 million active merchants and consumers. The company's platform is used to process over $100 billion in transactions annually.
Fundamental Analysis
PagSeguro Digital Ltd. has a strong financial profile. The company has a healthy balance sheet, with total assets of $2.9 billion and total liabilities of $1.3 billion. PAGS also has a strong cash flow, with operating cash flow of $703 million in the latest quarter.
The company's revenue is growing rapidly. In the latest quarter, revenue increased by 17.7% year-over-year to $1.69 billion. This growth was driven by an increase in the number of active merchants and consumers using the company's platform.
PAGS is also profitable. In the latest quarter, the company reported net income of $191 million, up 32.1% year-over-year. The company's net income margin was 11.2%.
Technical Analysis
The technical analysis of PAGS is mixed. The stock is currently trading below its 50-day and 200-day moving averages. However, the stock has been forming a bullish pattern in recent weeks. The stock is currently trading above its 50-day moving average and is approaching its 200-day moving average.
Short Term Outlook
The short-term outlook for PAGS is positive. The stock is trading above its 50-day moving average and is approaching its 200-day moving average. This indicates that the stock is in a bullish trend. The stock is also trading at a discount to its fair value, which makes it a good value play.
Long Term Outlook
The long-term outlook for PAGS is also positive. The company is a leader in the Brazilian financial technology market. The company's platform is used to process over $100 billion in transactions annually. PAGS is also growing rapidly, with revenue increasing by 17.7% year-over-year in the latest quarter. The company's strong financial profile and growth prospects make it a good long-term investment.
Analyst Recommendations
Analysts are bullish on PAGS. The consensus rating for the stock is "Buy." The average analyst target price for the stock is $16.27, which represents a potential upside of 78.4% from the current price.
