PAGSEGURO DIGITAL Shares Plunge 14% After Q1 Revenue Miss
May 27, 2023
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PAGSEGURO ($NYSE:PAGS): PagSeguro Digital, one of the leading Brazilian payment gateway companies, experienced a 14% drop in its stock prices after its Q1 revenue failed to meet expectations. The company provides digital payment solutions for businesses of all sizes, allowing them to accept payments online, in-store and through mobile devices. It also offers solutions for issuing and accepting credit cards, bank transfers and digital wallets.
PagSeguro Digital has become a key player in the Brazilian payments market, especially in the past few years as digital payments have become more prominent. As a result, the stock dropped sharply to close 14% lower on the day.
Analysis
At GoodWhale, we’ve conducted an analysis of PAGSEGURO DIGITAL‘s financials and determined that it’s a medium risk investment in terms of financial and business aspects. We were able to detect two risk warnings in PAGSEGURO DIGITAL’s income sheet and balance sheet. If you’re interested in learning more about the risk warnings we’ve found, register on GoodWhale.com and check it out. Our team is dedicated to providing investors with the best insights possible in order to make informed decisions about their investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pagseguro Digital. More…
| Total Revenues | Net Income | Net Margin |
| 8.91k | 1.5k | 16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pagseguro Digital. More…
| Operations | Investing | Financing |
| 3.55k | -2.18k | -1.33k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pagseguro Digital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 45.33k | 33.49k | 35.93 |
Key Ratios Snapshot
Some of the financial key ratios for Pagseguro Digital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.9% | – | 55.1% |
| FCF Margin | ROE | ROA |
| 15.9% | 26.3% | 6.8% |
Peers
PagSeguro Digital Ltd, One97 Communications Ltd, Getnet Adquirencia E Servicos Para Meios De Pagamento SA, and AGS Transact Technologies Ltd are all competing in the online payment processing industry. All four companies offer similar services, but PagSeguro Digital Ltd has a distinct advantage because it is the only Brazilian company in the group. This gives PagSeguro Digital Ltd a first mover advantage in the Brazilian market and allows the company to better understand the needs of Brazilian customers.
– One97 Communications Ltd ($BSE:543396)
One97 Communications Ltd is a holding company that engages in the provision of digital entertainment services. It operates through the following segments: Digital Entertainment and Others. The Digital Entertainment segment offers online content and services such as music, videos, games, and news. The Others segment includes sale of mobile handsets and accessories, and other value-added services. The company was founded by Vijay Shekhar Sharma in 2000 and is headquartered in Noida, India.
– Getnet Adquirencia E Servicos Para Meios De Pagamento SA ($NASDAQ:GET)
Getnet Adquirencia e Servicos para Meios de Pagamento SA is a Brazil-based company engaged in the provision of payment solutions. The Company offers services in the areas of electronic commerce, m-commerce, point of sale (POS) and others. It also provides solutions for the management and control of expenses, such as virtual cards, corporate cards and prepaid cards. The Company operates through three segments: Merchant Acquiring, which includes the activities of contracting and providing technological solutions that enable acceptance of electronic payments in physical stores; e-Commerce, which includes the contracting and providing of technological solutions that enable the acceptance of electronic payments in online stores; and Financial Institution, which includes the contracting and providing of technological solutions that enable the acceptance of electronic payments by financial institutions.
– AGS Transact Technologies Ltd ($BSE:543451)
Transact Technologies Ltd is a global provider of integrated payment solutions. The company’s products and services include point-of-sale systems, payment processing services, and software solutions. Transact Technologies Ltd has a market cap of 9.88B as of 2022 and a Return on Equity of 20.68%. The company’s products and services are used by merchants of all sizes, from small businesses to large enterprises. Transact Technologies Ltd is headquartered in New York, New York.
Summary
PagSeguro Digital, a Brazilian payments processing company, recently experienced a 14% decline in its stock price due to disappointing Q1 revenue results. This serves as a reminder to investors of the importance of conducting thorough research before investing in a company. Despite PagSeguro Digital’s strong performance in recent years, investing in a high-growth company can be risky, as recent events have shown. Investors should thoroughly examine the company’s financials, competitive landscape, and prospects for the future before investing in any stock.
Furthermore, industry-specific risks, such as changes in consumer behavior or government regulations, should also be taken into account. Although Q1 revenue was lower than expected, PagSeguro Digital remains an attractive investment opportunity for investors looking to capitalize on its long-term growth potential.
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