PagSeguro Digital Ltd. (PAGS): one to watch?

Cheap and still profitable, but Brazil's high interest rates and fierce Pix/Nubank competition cap growth — no fresh disaster, but no clear catalyst either.

👀 WATCH Fundamentals58/100

Down 84% from its all-time high of $61.82 — now $9.73

Why PAGS dropped

The 2021 collapse from $61 was driven by Brazil's central bank hiking rates and new competitors (Pix, Nubank) commoditizing payments and crushing take rates — a multi-year structural repricing, not a one-time event. Recent quarters (Q1-Q2 2026) show the business has stabilized rather than deteriorated further: revenue and EPS are still growing modestly and management reaffirmed 2026 guidance, though at the low end.

Fwd P/E 5.2Op margin 36.2%Rev growth -0.2%Debt/equity 11.8%Analyst upside 21.5%

How this scored 58/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.9%

✅ Generates cash Free cash flow $-1.9B

✅ Not drowning in debt Debt/equity 11.8% (limit 200%)

✅ Can pay its bills Current ratio 1.6 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 17/25

Operating margin 36.2% 9/9

Net profit margin 10.9% 4/8

Return on equity 14.5% 4/8

Growth Is it getting bigger, or dying? 13/25

Revenue growth -0.2% 1/9

Earnings growth 10.1% 4/8

Expected profit change 27.3% 7/8

Value Is it cheap right now? 15/25

Forward P/E 5.2 10/10

PEG ratio unknown 2/8

Analyst target upside 21.5% 3/7

Balance sheet Will it survive? 13/25

Debt / equity 11.8% 10/10

Current ratio 1.6 3/8

Free cash flow $-1.9B 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-08. Research only — not financial advice.