PagSeguro Digital

PAGS

Specialty Business Services · Industrials

Price

$8.62

+0.18 (+2.13%)

Market Cap

$2.49B

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Good

Cash Flow

Weak

Stability

Weak

Valuation

Strong

Dividends

Good

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Share count falling — buybacks

−10.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 332.2M (2021) → 297.9M (2025)

Winston Score History

The full picture

PagSeguro Digital is a Brazilian financial technology company that helps small businesses and individual sellers accept payments. Its main products include card readers, digital wallets, and a full banking app called PagBank, which lets customers send money, pay bills, and earn interest on deposits. It operates almost entirely in Brazil and competes in the fast-growing market for digital financial services.

The company makes money by charging fees on each payment processed, earning interest on loans it makes to customers, and collecting fees on banking services through PagBank. With tens of millions of active users and a large base of small merchants, PagSeguro has built a sticky ecosystem where customers use multiple products at once, making it harder for them to switch. The key growth driver is expanding its banking and credit products to capture more revenue per customer, but rising competition from rivals like Nubank and Mercado Pago, along with Brazil's economic volatility, remain meaningful risks.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-58.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+10.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

R$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

R$1.4B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

PagSeguro Digital's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

-15.0%

Thin — -15.0% gross margin

Profit after running costs

Operating Margin

-51.4%

Losing money on operations — -51.4%

Return on the money invested

ROCE

7.6%

Weak — 7.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

-12.1%

Shrinking sales (-12.1% YoY)

Profit growth

EPS YoY

+5.8%

Modest earnings growth (+5.8% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

30%

Weak — only 30% of profit becomes cash

Spare cash per sale

FCF Margin

-3.3%

Burning cash (-3.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

3.10

Heavy debt load (3.10)

Covers its interest

Interest Cover

0.87x

Dangerous — barely covers interest (0.9x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

5.9x

Attractive valuation — P/E 5.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+0.8

GROWING

Earnings roughly flat

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Dividends

Dividend

Dividend Yield

6.43%

Healthy income — 6.43% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

N/A

Data not available

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