PagSeguro Digital Ltd. — Earnings Quality Grade F
PAGS · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 602 days (1688 → 2291)
AR outpaced revenue for 2 consecutive years
Revenue 1.7%, CFFO -185.4%. Cash follows revenue
Expense Quality
Inventory -95.1% vs COGS 17.3%. Normal
CapEx growth 16.7% vs revenue 1.7%. Normal
SG&A/Gross Profit = -786.6%, excellent (<30%)
Gross margin swung -13.8pp (9.9% → -3.9%)
Cash Flow Quality
CFFO/NI = -1.61. Only -161% of profit backed by cash
FCF is negative ($-5.7B)
Accruals ratio = 7.6%. Elevated
Cash $1.4B covers only 3% of debt $40.6B
Balance Sheet Health
Goodwill+Intangibles $2.9B = 20% of equity. Manageable
Debt/EBITDA = 5.3x (>4x). Interest coverage = -0.9x (<2x). Financial stress
Other assets grew 56.1% vs revenue 1.7%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 14% YoY. Normal
Manipulation Score
M-Score = -3.68 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25