Stock analysis · Bull Rankings model

PAGS analysis

PagSeguro Digital Ltd.Software - Infrastructure. Scored on the same transparent 7-signal model behind the daily rankings.

PAGS
PagSeguro Digital Ltd. · Software - Infrastructure
FCF$993mC+
Rev+17.9%B+
D/E0.18B+
P/E6.6xA
PEG0.75A-
72Score
$9.29$2.6B
1Y Target$12.01Analyst consensus · 14 analysts
5Y Target$15.17Compound horizon
10Y Target$19.45Long-dated conviction
FCF$993mTTM · 03/26
C+
FCF $993m — respectable but not differentiating · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+17.9%TTM YoY
B+
Revenue +17.9% — above sector median, healthy trajectory
D/E0.18
B+
D/E 0.18 — below the Technology debt median (≈40th pctile)
P/E6.6x
A
P/E 6.6 — cheapest decile in Technology (≈10th pctile)
PEG0.75proxy
A-
PEG 0.75 — strong; Lynch's preferred zone · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 72
Quality0.79
Growth0.97
Value0.83
Why this score
  • Short track record
  • Foreign reporter (BRL)
Entry · Margin of safety
52-week rangeMid-range
25% off the 12-month high
vs DCF fair value82% belowest. fair value ~$52
Quality signals · context only
Gross profitability15% · C+gross profit ÷ total assets (Novy-Marx)
Why now
Software - Infrastructure · market cap $2.6b. Down 25% from 52-week high of $12.32 — deep drawdown territory. Revenue growing +18%, comfortably above the S&P median. PEG 0.75 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $12.01 (implying +29% upside).
Moat
ROE 14% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $12.01 (14-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $15.17 at ~10% CAGR — dividend + buyback compounding. 10 yr $19.45 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
0.0 over 14 daily scores
From 72.0 (Jun 22) → 72.0 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
215
Position size
$1,998
4.0% of portfolio
Stop price
$6.97
25% below $9.29
$ at risk if stopped
$499.61
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

PagSeguro Digital Ltd. (PAGS): score, valuation & FAQ

PagSeguro Digital Ltd. (PAGS) is a Software - Infrastructure company that scores 72 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A), PEG (A-) and Rev (B+). On valuation, PAGS sits about 82% below our discounted-cash-flow fair value (a margin of safety).

Is PAGS a good stock to buy?

Bull Rankings scores PAGS 72 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A), PEG (A-) and Rev (B+). A score is a quantitative screen of PagSeguro Digital Ltd.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does PAGS score 72 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PAGS earns its highest marks on P/E (A), PEG (A-) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is PAGS overvalued or undervalued?

Based on $9.29, PAGS sits about 82% below our discounted-cash-flow fair value (a margin of safety). It trades at a 6.6x× P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in PAGS?

Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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