UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2024 Commission File Number 1-38353 PAGSEGURO DIGITAL LTD. (Exact name of registrant as specified in its charter) The Cayman Islands (Jurisdiction of incorporation or organization) Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands ...

Core Insights - The article compares two stocks in the Financial Transaction Services sector: PagSeguro Digital Ltd. (PAGS) and Shift4 Payments (FOUR) to determine which is more attractive to value investors [1] Valuation Metrics - PAGS has a forward P/E ratio of 6.85, while FOUR has a forward P/E of 16.18 [5] - PAGS has a PEG ratio of 0.61, and FOUR has a PEG ratio of 0.62, indicating similar expected earnings growth rates [5] - PAGS has a P/B ratio of 1.03, compared to FOUR's P/B ratio of 6.72, suggesting PAGS is more undervalued relative to its book value [6] Analyst Outlook - PAGS currently holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to FOUR, which has a Zacks Rank of 3 (Hold) [3] - PAGS has a Value grade of B, while FOUR has a Value grade of C, further supporting PAGS as the superior value option [6]

Investors interested in stocks from the Financial Transaction Services sector have probably already heard of PagSeguro Digital Ltd. (PAGS) and Shift4 Payments (FOUR) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emph ...

Investors interested in Financial Transaction Services stocks are likely familiar with PagSeguro Digital Ltd. (PAGS) and RB Global (RBA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate ...

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Core Insights - The article emphasizes the importance of in-depth research and insights for informed investment decisions in the Latin American equity market [1] Group 1 - The company has over 5 years of experience in equity analysis specifically focused on Latin America [1] - The research provided aims to assist clients in making informed investment decisions [1]

Core Viewpoint - PagSeguro Digital Ltd. (PAGS) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive outlook for the company's stock price [1][2]. Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.29 per share, reflecting a decrease of 12.12% compared to the previous year [4]. - Over the last 30 days, the Zacks Consensus Estimate for PagSeguro Digital has increased by 14.71%, with two estimates moving higher and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, the company is expected to earn $1.23 per share, which is an increase of 1.65% from the prior year [5]. - The consensus estimate has risen by 6.41% over the past month, with two estimates moving up and no negative revisions [5]. Favorable Zacks Rank - PagSeguro Digital currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts regarding positive earnings estimate revisions [6]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [6]. Bottom Line - The stock has gained 12.2% over the past four weeks, driven by solid estimate revisions, suggesting potential for further growth [7].

Core Viewpoint - The analysis compares PagSeguro Digital Ltd. (PAGS) and DLocal (DLO) to determine which stock is a better undervalued investment option for investors interested in Financial Transaction Services [1]. Valuation Metrics - Both PAGS and DLO currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - PAGS has a forward P/E ratio of 6.43, significantly lower than DLO's forward P/E of 23.86, suggesting PAGS is more undervalued [5]. - The PEG ratio for PAGS is 0.47, while DLO's PEG ratio is 3.26, further indicating PAGS's superior valuation based on expected EPS growth [5]. - PAGS has a P/B ratio of 0.96, compared to DLO's P/B of 9.07, reinforcing the notion that PAGS is undervalued relative to its book value [6]. - Based on these valuation metrics, PAGS holds a Value grade of A, while DLO has a Value grade of C, suggesting PAGS is the superior value option at this time [6].

Core Viewpoint - PagSeguro Digital Ltd. (PAGS) has seen a 12.2% increase in share price over the past four weeks, closing at $7.92, with a potential upside of 34% based on Wall Street analysts' mean price target of $10.61 [1] Price Targets and Analyst Estimates - The mean estimate consists of 11 short-term price targets with a standard deviation of $3.45, indicating variability among analysts; the lowest estimate is $5 (36.9% decline), while the highest is $16 (102% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Optimism - Analysts are optimistic about PAGS's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has historically correlated with stock price movements [9] - Over the last 30 days, two earnings estimates for PAGS have increased, leading to a 6.4% rise in the Zacks Consensus Estimate [10] Zacks Rank and Investment Potential - PAGS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside in the near term [11] Conclusion on Price Targets - While the consensus price target may not reliably indicate the extent of PAGS's potential gains, it does provide a useful guide for the direction of price movement [12]

Financial Data and Key Metrics Changes - PagSeguro Digital achieved a record total payment volume (TPV) of BRL 518 billion, representing a 32% year-over-year growth [6] - Net revenues increased by 18% year-over-year, reaching BRL 18.8 billion, while net income reached an all-time high of BRL 2.3 billion, a 28% growth compared to 2023 [7] - Diluted earnings per share (EPS) on a GAAP basis reached BRL 6.62, growing 30% versus the previous year [7] - Return on average equity (ROE) improved to 15.2%, a 198 basis points increase year-over-year [8] Business Line Data and Key Metrics Changes - The banking business segment saw a record revenue of BRL 513 million, growing 58% year-over-year, primarily driven by interest income from the expanding credit portfolio [31] - The merchant acquiring business recorded a TPV of BRL 146 billion in Q4 2024, growing 28% year-over-year, with TPV per merchant increasing by 33% [18] - The credit portfolio reached BRL 3.4 billion, a 36% year-over-year increase, with secured products making up 85% of the loan book [27] Market Data and Key Metrics Changes - The overall client base grew to 33.2 million, adding 2.1 million clients year-over-year, with 17.8 million active clients [16] - Cash-in per active client grew 35% year-over-year, reaching BRL 5,400 per client [23] - Total deposits increased by 31%, reaching BRL 36.1 billion, despite ongoing initiatives to reduce funding costs [24] Company Strategy and Development Direction - The company aims to explore new growth verticals and improve shareholder value through a buyback program, having executed over 50% of a $200 million buyback program launched in August 2024 [11] - PagSeguro is focused on integrating payments and banking services to enhance customer engagement and transactionality [22] - The strategy includes a dynamic repricing approach to mitigate the impact of rising interest rates while maintaining client relationships [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges, having outperformed guidance despite a higher-than-expected SELIC rate [10] - For 2025, the company expects gross profit growth between 7% and 11% and EPS growth in the range of 11% to 15% [43] - The management highlighted the increasing relevance of the banking segment, which achieved a remarkable year-over-year revenue growth of 34% [47] Other Important Information - The company has maintained a conservative capital structure while achieving consistent results, with a focus on creating shareholder value [48] - The total credit portfolio has been growing steadily, with a significant reduction in non-performing loans (NPL) from 3.2% to 2.3% [28] Q&A Session Summary Question: Inquiry about the credit portfolio and collateralized loans - Management confirmed a healthy credit portfolio growing at 36% year-over-year and plans to continue growing secured loans faster than the market [54] Question: Clarification on transaction activities revenue decrease - Management explained that while transaction activities revenue decreased by 8% year-over-year, financial income increased by 51%, leading to an overall revenue growth of 18% [58] Question: Guidance on EPS growth and net income expectations - Management clarified that the EPS guidance does not factor in buybacks and expects net income to grow at a similar rate [62] Question: Details on TPV growth expectations - Management indicated that they expect to continue growing TPV faster than the industry, with ABECS projecting a 9% to 11% growth in cards for 2025 [68] Question: Breakdown of TPV expansion in the LMEC segment - Management noted that LMEC grew 45% year-over-year, with e-commerce and cross-border transactions being significant contributors [76] Question: Insights on repricing strategy - Management stated that repricing is a dynamic process and they have already begun repricing in 2025, with plans to continue as necessary [74] Question: Capital allocation and excess capital investment - Management emphasized a cautious approach to capital allocation, preferring buybacks over dividends in the current market environment [92] Question: Impact of new regulations on PAGS business - Management reported no material changes since the new regulations were implemented, maintaining a focus on growing the card-not-present transaction segment [125]