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PagSeguro Digital Ltd. (NYSE:PAGS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of PAGS, it is a company with strong financial health as well as an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on PagSeguro Digital here.
Exceptional growth potential with flawless balance sheet
One reason why investors are attracted to PAGS is its notable earnings growth potential in the near future of 25%. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. PAGS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PAGS has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PAGS currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$14b market cap company. PAGS has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For PagSeguro Digital, there are three relevant aspects you should further research:
- Historical Performance: What has PAGS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is PAGS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PAGS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PAGS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.