PagSeguro DigitalPAGS +0.11%90 Gross Margin % is 53.66% as of Mar. 2026, which is 9% above its 10-year median of 49.14. GuruFocus rates PAGS with a GF Score™ of 90/100 and a GF Value™ of $11.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,683 Software companies, PagSeguro Digital ranks better than 64% on this metric.
The historical rank and industry rank for PagSeguro Digital's Gross Margin % or its related term are showing as below:
PAGS'
s Gross Margin % Range Over the Past 10 Years
Min: 44.64 Med: 49.14 Max: 53.06
Current: 53.06
During the past 12 years, the highestGross Margin % of PagSeguro Digital was 53.06%. The lowest was 44.64%. And the median was 49.14%.
PAGS's Gross Margin % is ranked better than 64% of 2683
companies
in the Software industry
Industry Median: 40.45
vs PAGS: 53.06
PagSeguro Digital had a gross margin of 53.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PagSeguro Digital was 3.10% per year.
PagSeguro Digital (NYSE:PAGS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PagSeguro Digital had a gross margin of 53.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PagSeguro Digital Gross Margin % Related Terms
PagSeguro Digital Gross Margin % Historical Data
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The historical data trend for PagSeguro Digital's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PAGS vs CALX, EEFT, STNE: Gross Margin % Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PagSeguro Digital Gross Margin % vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PagSeguro Digital (PAGS) has a Gross Margin % of 53.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PagSeguro Digital and its competitors. This is near median its historical median of 49.14. Over the past decade, PagSeguro Digital's Gross Margin % has ranged from 44.64 to 53.06. According to the industry distribution chart, PagSeguro Digital ranks #966 out of 2683 companies in the Software industry, placing it in the top 36%.
Is PagSeguro Digital's Gross Margin % too high?
PagSeguro Digital's current Gross Margin % of 53.66% is near median its 10-year median of 49.14. Over the past 10 years, this metric has ranged from a low of 44.64 to a high of 53.06. The Software industry median Gross Margin % is 40.45. PagSeguro Digital's value of 53.66% is 32.7% above this industry median. Based on the distribution chart, PagSeguro Digital ranks #966 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, PagSeguro Digital has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PagSeguro Digital's Gross Margin % compare to CALX and EEFT?
According to the Software industry distribution chart, PagSeguro Digital ranks #966 out of 2683 companies for Gross Margin %. This puts PagSeguro Digital in the upper half of its industry. The industry median Gross Margin % is 40.45. PagSeguro Digital's value of 53.66% is 32.7% above this benchmark. Historically, PagSeguro Digital's own Gross Margin % has ranged from 44.64 to 53.06 over the past decade. While the company's 10-year median is 49.14 vs. the industry median of 40.45, PagSeguro Digital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PagSeguro Digital's current Gross Margin % of 53.66% is 32.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PagSeguro Digital and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagSeguro Digital's current Gross Margin % is 53.66%, which is near median its own 10-year median of 49.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagSeguro Digital stock overvalued right now?
Based on GuruFocus' analysis, PagSeguro Digital (PAGS) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.93, compared to a current price of $8.77 — trading 26.5% below its estimated fair value. The current Gross Margin % is 53.66%, which is near median its 10-year median of 49.14 and 32.7% above the Software industry median of 40.45. PagSeguro Digital's overall GF Score™ is 90/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PagSeguro Digital (PAGS), the current Gross Margin % is 53.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PagSeguro Digital (PAGS) Overvalued in 2026?
Based on GuruFocus' analysis, PagSeguro Digital stock appears to be undervalued.
The current stock price of $8.77 is trading 26.5% below its estimated GF Value™ of $11.93.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Gross Margin %: 53.66% (near median its 10-year median of 49.14)
GF Value™: $11.93 vs. price of $8.77 (26.5% below fair value)
Industry Position: 32.7% above the Software median (#966 of 2683)
No single metric tells the full story. See the PAGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
90GF Score
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