# PagSeguro Digital (PAGS.US)

Canonical: https://gigainvestors.com/s/PAGS

Analysis as of: 2026-10-16T07:31:01.516Z. Financial observations: FY2014–FY2025.

Listing currency: USD. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $11.12 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.20×

- FY2017: 0.31×

- FY2018: 0.24×

- FY2019: 0.33×

- FY2020: 0.26×

- FY2021: 0.21×

- FY2022: 0.33×

- FY2023: 0.34×

- FY2024: 0.33×

- FY2025: 0.38×

### moat: pass

- ROIC, median of available years: 19.5%

- ROIC, second-lowest year: 11.6%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 47.6%

- Recent gross margin (lower of latest and 3-year median): 48.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 12.7%

- ROIC including acquisitions, ten-year median: 5.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 29.8%

- FY2017: 89.2%

- FY2018: 19.5%

- FY2022: 21.0%

- FY2023: 19.0%

- FY2024: 9.9%

- FY2025: 11.6%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.81×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 6.9B

- Net income, five-year total: BRL 8.5B

- Return on incremental invested capital: 11.6%

- Working capital / revenue, annual change: 29.0 pp

- Working capital / revenue, change between three-year averages: 207.1 pp

- Working capital / revenue, final three-year average: 270.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.19×

- FY2022: 0.62×

- FY2023: 0.67×

- FY2024: 0.85×

- FY2025: 1.36×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.8% vs 11.6%

- Per-share earnings: 0.48 to 6.62 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -2.0%

- Market cap gain: BRL -17B

- Cumulative retained earnings: BRL 10B

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -2.0%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 38.7%

- Per-share value change: BRL 6.14

- Per-share value, starting three-year median: BRL 0.48

- Per-share value, ending three-year median: BRL 6.62

- Buybacks concentrated in cheaper years (correlation): 0.93

- Average buyback yield: 2.7%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: BRL 365M

- Cumulative net income, 10 years: BRL 13B

- ROIC, first three-year median: 29.8%

- ROIC, last three-year median: 11.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.48

- FY2017: BRL 1.60

- FY2018: BRL 2.78

- FY2019: BRL 4.16

- FY2020: BRL 3.92

- FY2021: BRL 3.51

- FY2022: BRL 4.57

- FY2023: BRL 5.10

- FY2024: BRL 6.62

- FY2025: BRL 6.97

### accounting: pass

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.24×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.3%

- FY2017: 0.2%

- FY2018: 24.3%

- FY2022: -4.5%

- FY2023: -4.3%

- FY2024: 7.6%

- FY2025: -0.7%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 69% since Oct 2021 · "PagSeguro (PAGS) Drops 8.86% as Analysts Expect Q2 Earnings Fall" (finance.yahoo.com, Jul 2025) · sales +5.6%

Story as of 2026-10-16T09:59:21.554Z; price observation 2026-10-15.

- 2025-06-17: PagSeguro (PAGS) Flies 12.68% Higher on Dividend Declaration ([finance.yahoo.com](https://finance.yahoo.com/news/pagseguro-pags-flies-12-68-180239874.html))

- 2025-07-21: PagSeguro (PAGS) Drops 8.86% as Analysts Expect Q2 Earnings Fall ([finance.yahoo.com](https://finance.yahoo.com/news/pagseguro-pags-drops-8-86-155415697.html))

### Sales · FY2024–2025

sales +5.6%; source https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm; observed 2026-04-29.

- FY2016: BRL 1.1B 

- FY2017: BRL 2.5B 

- FY2018: BRL 4.1B 

- FY2019: BRL 5.6B 

- FY2020: BRL 6.7B 

- FY2021: BRL 10B 

- FY2022: BRL 15B 

- FY2023: BRL 16B 

- FY2024: BRL 18B 

- FY2025: BRL 19B 

### Gross margin · FY2025

gross margin 50.6%; source https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm; observed 2026-04-29.

- FY2016: 45.0% 

- FY2017: 47.3% 

- FY2018: 47.1% 

- FY2019: 50.5% 

- FY2020: 43.6% 

- FY2021: 43.9% 

- FY2022: 50.7% 

- FY2023: 48.1% 

- FY2024: 47.9% 

- FY2025: 50.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are BRL 19.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm (filed 2026-04-29); FY2025: revenue 19355439000; grossProfit 9790683000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PAGS.US: PagSeguro Digital Ltd., together with its subsidiaries, provides financial and payment solutions for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company provides digital banking solutions, including bill payments, deposits, top-ups, debt management, direct deposits, pix, tax collections, tax collections, wire transfer, and ATM withdrawal; cards, such as debit, credit, cash, and prepaid cards; and credit products comprising FGTS withdrawals, payroll loans, working capital loans, and overdraft accounts. It offers insurance services, including account, card, home, business, health assistance, life, and credit life insurance; investment services, such as recommendation from our distribution team, financial education, stocks and REITs, investment, PagBank CD, Third-party fixed income, treasury, automatic savings and money boxes; and operates cashback and Shopping PagBank, a marketplace for various brands. In addition, it provides software solutions comprising PagVendas, a POS software app; ClubPag, a marketing tool that allows merchants to advertise across client base, available for POS devices; PlugPag, a wireless solution that connects the machine to the commercial automation system, via Bluetooth technology; and Envio Fácil, a logistics solution for online sales. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

### Why customers stay

Margins ranged from 47.9% to 50.6% during 2023–25; it earns 19.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: grossProfit / revenue = 48.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: grossProfit / revenue = 47.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm (filed 2026-04-29); FY2025: grossProfit / revenue = 50.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,0.2980440730677194],[2017,0.891543791802542],[2018,0.19524522929629576],[2022,0.20968382748087638],[2023,0.19043213649920882],[2024,0.0987325784325369],[2025,0.11605382925130578]]; median 0.19524522929629576. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 3 of 10 years; bought back BRL 1.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2016: growth capex 2468892.3302788436; upkeep 65121707.66972116; owner earnings 93310292.33027884. Growth capex / owner earnings = 0.02645894968949419.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2017: growth capex 6952589.771069795; upkeep 104787469.2289302; owner earnings 425564530.77106977. Growth capex / owner earnings = 0.01633733374929666.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2018: growth capex 11304943.867453754; upkeep 257526439.13254625; owner earnings 747103560.8674538. Growth capex / owner earnings = 0.015131695871356451.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2019: growth capex 11691335.49778521; upkeep 695403532.5022148; owner earnings 798541467.4977852. Growth capex / owner earnings = 0.014640862088752626.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2021: growth capex 37709243.199560165; upkeep 1714119756.8004398; owner earnings 220575243.19956017. Growth capex / owner earnings = 0.17095863820693435.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2022: growth capex 439898440.81137323; upkeep 1696497559.1886268; cash acquisitions 0; owner earnings 938960440.8113732. Growth capex plus acquisitions / owner earnings = 0.4684951800858072.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: growth capex 83624185.4003334; upkeep 1904739814.5996666; cash acquisitions 31313000; owner earnings 1104597185.4003334. Growth capex plus acquisitions / owner earnings = 0.10405348385771716.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: growth capex 407945754.13459444; upkeep 1912695245.8654056; cash acquisitions 0; owner earnings 1804604754.1345944. Growth capex plus acquisitions / owner earnings = 0.22605822865086406.

- Source: https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm (filed 2026-04-29); FY2025: growth capex 0; upkeep 1019610000; cash acquisitions 0; owner earnings 2829150000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,370.09],[2017,56389528],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,604934000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm (filed 2026-04-29); FY2025: cash repurchases 1304054000 BRL.

### Are managers owners

Insiders own 4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PAGS.US SharesStats.PercentInsiders = 3.998 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Closing price 11.12 USD; reporting-to-trading FX 0.19614; FY2025 annual sales per share 64.97995161330901; price multiple 0.8724875382980309. FY2025 cash earnings/share 9.49800364160137. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-01: $27.94 per share

- 2018-02: $32.24 per share

- 2018-03: $38.32 per share

- 2018-04: $33.23 per share

- 2018-05: $33.27 per share

- 2018-06: $27.75 per share

- 2018-07: $26.92 per share

- 2018-08: $28.89 per share

- 2018-09: $27.67 per share

- 2018-10: $26.99 per share

- 2018-11: $24.00 per share

- 2018-12: $18.73 per share

- 2019-01: $21.57 per share

- 2019-02: $28.13 per share

- 2019-03: $29.85 per share

- 2019-04: $26.06 per share

- 2019-05: $32.02 per share

- 2019-06: $38.97 per share

- 2019-07: $43.48 per share

- 2019-08: $49.96 per share

- 2019-09: $46.31 per share

- 2019-10: $37.08 per share

- 2019-11: $33.94 per share

- 2019-12: $34.16 per share

- 2020-01: $32.49 per share

- 2020-02: $31.37 per share

- 2020-03: $19.33 per share

- 2020-04: $25.33 per share

- 2020-05: $31.73 per share

- 2020-06: $35.34 per share

- 2020-07: $38.23 per share

- 2020-08: $42.14 per share

- 2020-09: $37.71 per share

- 2020-10: $36.61 per share

- 2020-11: $47.36 per share

- 2020-12: $56.88 per share

- 2021-01: $48.95 per share

- 2021-02: $58.06 per share

- 2021-03: $46.30 per share

- 2021-04: $45.74 per share

- 2021-05: $49.11 per share

- 2021-06: $55.92 per share

- 2021-07: $55.44 per share

- 2021-08: $59.47 per share

- 2021-09: $51.72 per share

- 2021-10: $36.20 per share

- 2021-11: $25.56 per share

- 2021-12: $26.22 per share

- 2022-01: $22.62 per share

- 2022-02: $15.94 per share

- 2022-03: $20.05 per share

- 2022-04: $14.71 per share

- 2022-05: $15.36 per share

- 2022-06: $10.24 per share

- 2022-07: $10.85 per share

- 2022-08: $15.54 per share

- 2022-09: $13.23 per share

- 2022-10: $13.68 per share

- 2022-11: $10.53 per share

- 2022-12: $8.74 per share

- 2023-01: $10.09 per share

- 2023-02: $8.67 per share

- 2023-03: $8.57 per share

- 2023-04: $9.84 per share

- 2023-05: $9.95 per share

- 2023-06: $9.44 per share

- 2023-07: $11.36 per share

- 2023-08: $8.98 per share

- 2023-09: $8.61 per share

- 2023-10: $7.06 per share

- 2023-11: $10.08 per share

- 2023-12: $12.47 per share

- 2024-01: $12.87 per share

- 2024-02: $13.92 per share

- 2024-03: $14.28 per share

- 2024-04: $12.45 per share

- 2024-05: $12.25 per share

- 2024-06: $11.69 per share

- 2024-07: $12.78 per share

- 2024-08: $11.07 per share

- 2024-09: $8.61 per share

- 2024-10: $8.04 per share

- 2024-11: $7.34 per share

- 2024-12: $6.26 per share

- 2025-01: $7.45 per share

- 2025-02: $7.36 per share

- 2025-03: $7.63 per share

- 2025-04: $10.03 per share

- 2025-05: $8.91 per share

- 2025-06: $9.64 per share

- 2025-07: $7.83 per share

- 2025-08: $8.96 per share

- 2025-09: $10.00 per share

- 2025-10: $9.59 per share

- 2025-11: $10.48 per share

- 2025-12: $9.64 per share

- 2026-01: $11.25 per share

- 2026-02: $10.61 per share

- 2026-03: $10.02 per share

- 2026-04: $10.02 per share

- 2026-05: $9.35 per share

- 2026-06: $9.05 per share

- 2026-07: $9.64 per share

- 2026-08: $9.02 per share

- 2026-09: $8.90 per share

- 2026-10: $11.12 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1712807/000155485526000826/pags-20251231.htm); period 2025-12-31, filed 2026-04-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.