PagSeguro Digital Ltd. (PAGS) AI Stock Analysis

PagSeguro Digital Ltd. and its subsidiaries deliver financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small to medium-sized enterprises in Brazil and globally. Its core offering is the PagSeguro Ecosystem, a digital closed-loop platform that lets clients manage fund reception, expenditures, and business growth. The PagBank digital account, accessible via mobile app, centralizes banking services for cash-in and cash-out operations. For medium and larger merchants, its PlugPag solution connects point-of-sale devices with enterprise resource planning systems via Bluetooth. The company also provides online and offline payment tools, cross-border digital solutions, online gaming support, and prepaid, credit, and cash cards.

Annual revenue grew from $10.30B in FY2021 to $19.36B in FY2025, reflecting a 5-year revenue CAGR of 23.7%. Operating margin expanded from 20.6% in FY2021 to 37.5% in FY2025, while gross margin was 50.6% in FY2025. Annual net income reached $2.08B in FY2025, up from $1.17B in FY2021, with diluted EPS rising to $7.96. For the trailing twelve months ended June 30, 2026, revenue stood at $19.80B with a profit margin of 10.9%. In the latest quarter, quarterly revenue fell 0.2% year-over-year, while quarterly earnings grew 10.1% year-over-year.

As of June 30, 2026, the company held $1.39B in cash and short-term investments against total debt of $46.61B, resulting in net debt of $45.22B. Shareholders' equity was $15.02B, and total assets reached $75.70B, with a debt-to-equity ratio of 3.10 and a current ratio of 1.55. Operating cash flow was $2.57B in FY2025, supporting free cash flow of $1.55B. Capital allocation in FY2025 included capital expenditures of $1.02B, share buybacks of $1.30B, and dividends paid of $604.9M.

PAGS trades at a trailing P/E of 7.7x and a forward P/E of 6.2x, below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value stands at $10.46B compared to a market cap of $3.03B, yielding an EV/EBITDA of 5.9x versus the peer median of 16.6x. The price-to-sales ratio is 0.2x against 2.8x for peers. Over the past year, the stock returned 33.6%, outperforming the S&P 500 return of 16.8%, but its 5-year return fell 67.2% compared to an 83.0% gain for the index.

PagSeguro pays a quarterly dividend with an annual forward dividend of $1.12 per share, representing a dividend yield of 10.18%. The dividend payout ratio is 13.1%, and the company has paid dividends for 2 consecutive years. The last ex-dividend date was September 16, 2026, following $604.9M in dividends paid during FY2025.

Wall Street analysts covering PAGS include 6 Strong Buy, 9 Hold, and 1 Strong Sell ratings. The mean price target is $11.59, representing an upside of 5.3% over the last close of $11.00 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate EPS of $8.55 on revenue of $21.03B. For the following fiscal year, 8 analysts project EPS of $9.61 and revenue of $22.28B. PAGS has beaten EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for November 11, 2026.

This page is an AI-written research summary of PagSeguro Digital Ltd. (PAGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PAGS income statement, PAGS balance sheet, PAGS key metrics, PAGS analyst forecast, PAGS chart. See the PAGS stock overview for the latest quote and news.