Financial Performance - Total revenue for the three-month period ended June 30, 2025, was R$5,058,170, an increase of 11% compared to R$4,556,707 in the same period of 2024[12] - Net income for the six-month period ended June 30, 2025, reached R$1,061,851, representing a 7.6% increase from R$986,192 in the same period of 2024[12] - Basic earnings per common share for the three-month period ended June 30, 2025, was R$1.8031, up from R$1.5785 in the same period of 2024, reflecting a growth of 14.2%[12] - Net income for the six-month period ended June 30, 2025, was R$1,196,154, compared to R$1,150,094 for the same period in 2024, reflecting an increase of 4.0%[18] - The Group's net profit before taxes for the six-month period ended June 30, 2025, was R$1,196,154, compared to R$1,150,094 for the same period in 2024, indicating an increase of approximately 4%[97] - Basic earnings per share for the six-month period ended June 30, 2025, was R$3.5320, compared to R$3.1012 in 2024, indicating an increase of 13.9%[118] Cash and Liquidity - Cash and cash equivalents increased to R$1,128,207 as of June 30, 2025, compared to R$927,668 at the end of 2024, marking a growth of 21.6%[7] - Cash and cash equivalents at the end of the period were R$1,128,207, compared to R$1,374,218 at the end of June 2024, reflecting a decrease of 17.9%[18] - PagSeguro's liquidity risk management includes maintaining reserves and credit lines, with cash and cash equivalents held at R$1,128,207 as of June 30, 2025[148] Assets and Liabilities - Total assets decreased to R$71,193,206 as of June 30, 2025, down from R$72,900,617 at the end of 2024, a decline of 2.3%[10] - Total liabilities decreased to R$56,609,506 as of June 30, 2025, compared to R$58,232,245 at the end of 2024, a reduction of 2.8%[10] - Total financial liabilities decreased to R$54,261,962 as of June 30, 2025, from R$55,643,518 at the end of 2024, showing a reduction of 2.5%[137] - The total amount of taxes and contributions decreased to R$684,991 as of June 30, 2025, from R$706,076 on December 31, 2024, reflecting a decline of approximately 3%[83] Equity and Shareholder Returns - Total equity as of June 30, 2025, was R$14,583,700, slightly down from R$14,668,372 at the end of 2024, a decrease of 0.6%[10] - The company paid dividends totaling R$236,037 during the six-month period ended June 30, 2025, marking its commitment to returning value to shareholders[18] - The company declared a dividend of US$0.14 per common share on May 13, 2025, totaling R$236,037, with R$141,117 allocated to third-party shareholders[116] Borrowings and Financial Costs - Borrowings for the six-month period ended June 30, 2025, were R$4,748,000, compared to R$2,398,160 in 2024, showing an increase of 97.9%[18] - The total borrowings as of June 30, 2025, were R$1,016,353 thousand due within 30 days, compared to R$2,540,481 thousand on December 31, 2024, indicating a significant reduction[159] - Financial costs for the six-month period ended June 30, 2025, were R$2,457,346, up from R$1,690,554 in 2024, representing an increase of 45.3%[124] Accounts Receivable and Credit Management - The company reported a decrease in accounts receivable to R$55,643,579 as of June 30, 2025, from R$57,628,538 at the end of 2024, a decline of 3.4%[7] - The total accounts receivable as of June 30, 2025, amounted to R$57,994,169, a decrease from R$59,803,273 as of December 31, 2024[43] - The expected credit losses (ECL) for accounts receivable increased to R$294,345 as of June 30, 2025, compared to R$284,620 at the end of 2024, reflecting a rise of 3.0%[45] - Past due accounts receivable rose to R$304,101 as of June 30, 2025, up from R$272,294 on December 31, 2024, indicating an increase of 11.7%[46] Operational Expenses - The total expenses for the six-month period ended June 30, 2025, were R$8,712,172, compared to R$7,713,038 in 2024, reflecting an increase of 12.9%[124] - The company incurred shared service costs of R$54,951 for the six-month period ended June 30, 2025, compared to R$55,691 for the same period in 2024, showing a marginal decrease[56] Strategic Initiatives - The company authorized a share repurchase program of up to US$200 million in August 2024, which was completed in May 2025, totaling US$200 million in Class A common shares repurchased[112] - PagSeguro Group operates in a single segment as financial service agents, with all strategic decisions made on a consolidated basis[36] Risk Management - The company has established a Credit Committee to assess the risk levels of card issuers, classifying them into three risk categories[146] - PagSeguro's exposure to foreign exchange risk is primarily related to POS purchases in various countries, with hedging strategies in place for revenues in foreign currencies[141] - The Group's strategy includes managing risks through derivative financial instruments to hedge against fluctuations in foreign currency and interest rates[165]

The market expects PagSeguro Digital Ltd. (PAGS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if t ...

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities for growth at a discount, especially when combined with strong fundamentals and positive business momentum [3][10] - Companies such as Janus Henderson Group plc (JHG), The Greenbrier Companies, Inc. (GBX), Precision Drilling (PDS), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Janus Henderson Group plc (JHG)**: A global asset management firm with a strong balance sheet and positive net inflows, positioned for long-term value creation [13] - **The Greenbrier Companies, Inc. (GBX)**: A leading supplier in freight transportation markets, benefiting from strong market demand and a profitable leasing business [15] - **Precision Drilling (PDS)**: An oilfield services company with a positive outlook supported by U.S. drilling activity and strategic expansions [17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, experiencing strong demand and improving cost structures [20] - **PagSeguro Digital (PAGS)**: A financial services provider in Brazil, enhancing its digital banking platform and focusing on sustainable growth [22]

Company Performance - PagSeguro Digital Ltd. ended the recent trading session at $8.16, showing a +1.75% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.4% [1] - The company experienced a loss of 14.41% over the previous month, underperforming the Business Services sector, which saw a loss of 0.55%, and the S&P 500, which gained 4.61% [1] Upcoming Earnings - PagSeguro Digital Ltd. is expected to report an EPS of $0.31, reflecting a 3.13% decline compared to the same quarter last year [2] - The consensus estimate for revenue is projected at $898.63 million, indicating a 2.77% increase compared to the same quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.29 per share and revenue at $3.66 billion, representing changes of +6.61% and +4.8% respectively from the prior year [3] - Recent changes to analyst estimates indicate optimism regarding the business and profitability [3] Valuation Metrics - PagSeguro Digital Ltd. is currently traded at a Forward P/E ratio of 6.22, which is a discount compared to the industry average Forward P/E of 15.81 [6] - The company has a PEG ratio of 0.55, which is lower than the average PEG ratio of 1.38 for Financial Transaction Services stocks [7] Industry Context - The Financial Transaction Services industry, part of the Business Services sector, has a Zacks Industry Rank of 159, placing it in the bottom 36% of all industries [8] - The Zacks Industry Rank assesses the strength of industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Company Overview - PagSeguro Digital Ltd. is part of the Business Services group, which consists of 258 companies and currently ranks 4 in the Zacks Sector Rank [2] - The company operates within the Financial Transaction Services industry, which includes 35 companies and is ranked 161 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, PagSeguro Digital Ltd. has returned approximately 27%, significantly outperforming the average gain of 1.6% in the Business Services group [4] - The Zacks Consensus Estimate for PagSeguro's full-year earnings has increased by 1.9% over the past quarter, indicating improved analyst sentiment [4] Comparative Analysis - Another company in the Business Services sector, QXO, Inc., has shown a year-to-date increase of 39.9% and has a consensus EPS estimate that has risen by 411.1% over the last three months [5] - The Financial Transaction Services industry, where PagSeguro operates, has gained an average of 4.3% this year, indicating that PagSeguro is performing better than its industry peers [6]

Core Insights - Investors are comparing PagSeguro Digital Ltd. (PAGS) and Corpay (CPAY) to determine which stock offers better value opportunities [1] Valuation Metrics - PAGS has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while CPAY has a Zacks Rank of 3 (Hold) [3] - PAGS has a forward P/E ratio of 6.47, significantly lower than CPAY's forward P/E of 15.72 [5] - The PEG ratio for PAGS is 0.57, while CPAY's PEG ratio is 1.19, suggesting PAGS is more favorably valued in terms of expected earnings growth [5] - PAGS has a P/B ratio of 1.03, compared to CPAY's P/B of 6.65, indicating PAGS is undervalued relative to its book value [6] - Overall, PAGS has a Value grade of A, while CPAY has a Value grade of C, highlighting PAGS as the superior value option [6]

Core Insights - PagSeguro Digital Ltd. has consistently surpassed earnings estimates, averaging a 12.07% beat over the last two quarters [1][5] - The company reported earnings of $0.29 per share for the most recent quarter, missing the expectation of $0.31 per share, but still achieving a surprise of 6.90% [2] - In the previous quarter, PagSeguro exceeded the consensus estimate of $0.29 per share by reporting $0.34 per share, resulting in a surprise of 17.24% [2] Earnings Estimates and Predictions - Recent changes in earnings estimates for PagSeguro Digital have been favorable, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8] - The current Earnings ESP for PagSeguro is +9.09%, suggesting that analysts are optimistic about the company's earnings prospects [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6][8] Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A positive Earnings ESP combined with a strong Zacks Rank indicates a higher probability of an earnings beat, while a negative Earnings ESP may reduce predictive power but does not necessarily indicate a miss [8][10]

Core Viewpoint - The article highlights three stocks with a buy rank and strong value characteristics, focusing on PagSeguro Digital as a notable investment opportunity [1] Company Summary - PagSeguro Digital (PAGS) provides financial technology solutions and services primarily for micro-merchants and small to medium-sized businesses in Brazil and internationally [1] - The company holds a Zacks Rank 1 (Strong Buy), indicating strong investor confidence [1] - Over the last 60 days, the Zacks Consensus Estimate for PagSeguro's current year earnings has increased by 1.6% [1]

Company Performance - PagSeguro Digital Ltd. closed at $8.43, reflecting a -1.86% change from the previous day, underperforming the S&P 500 which gained 0.32% [1] - Over the past month, shares of PagSeguro Digital Ltd. have decreased by 7.24%, compared to a loss of 1.01% in the Business Services sector and a gain of 4.51% in the S&P 500 [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.3, which represents a 6.25% decline from the same quarter last year [2] - Revenue is projected to be $913.21 million, indicating a 4.44% increase from the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of $1.22 per share and revenue of $3.7 billion, reflecting changes of +0.83% and +5.98% respectively from last year [3] - Recent revisions in analyst estimates suggest a positive outlook for the business [3] Valuation Metrics - PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 7.06, significantly lower than the industry average of 16.08, indicating a discount [6] - The company has a PEG ratio of 0.63, compared to the Financial Transaction Services industry's average PEG ratio of 1.27 [7] Industry Context - The Financial Transaction Services industry is part of the Business Services sector, which holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

In the latest trading session, PagSeguro Digital Ltd. (PAGS) closed at $9.37, marking a -2.8% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%. The stock of company has risen by 11.06% in the past month, leading the Business Services sector's loss of 0.89% and the S&P 500's gain of 5.12%.Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. ...