PagSeguro Digital (PagSeguro Digital) Gross Margin % : 8.07% (As of Dec. 2023)

View and export this data going back to 2018. Start your Free Trial

What is PagSeguro Digital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PagSeguro Digital's Gross Profit for the three months ended in Dec. 2023 was $40 Mil. PagSeguro Digital's Revenue for the three months ended in Dec. 2023 was $498 Mil. Therefore, PagSeguro Digital's Gross Margin % for the quarter that ended in Dec. 2023 was 8.07%.

Warning Sign:

PagSeguro Digital Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.5%.

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: 9.91 Med: 16.23 Max: 31.59
Current: 9.91

During the past 10 years, the highest Gross Margin % of PagSeguro Digital was 31.59%. The lowest was 9.91%. And the median was 16.23%.

PAGS's Gross Margin % is ranked worse than
92.43% of 2628 companies
in the Software industry
Industry Median: 41.685 vs PAGS: 9.91

PagSeguro Digital had a gross margin of 8.07% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PagSeguro Digital was -11.50% per year.

PagSeguro Digital Gross Margin % Historical Data

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.

* Premium members only.

PagSeguro Digital Gross Margin % Chart

PagSeguro Digital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

22.20

16.33

14.87

16.12

9.91

PagSeguro Digital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															14.54	10.31	11.08	10.40	8.07

Competitive Comparison of PagSeguro Digital's Gross Margin %

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's Gross Margin % Distribution in the 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.

PagSeguro Digital Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

PagSeguro Digital's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	182.6	/	1842.369
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1842.369 - 1659.777)	/	1842.369
	=	9.91 %

PagSeguro Digital's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	40.2	/	498.169
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(498.169 - 457.958)	/	498.169
	=	8.07 %

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 (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 8.07% for the quarter that ended in Dec. 2023 => No sustainable 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

Thank you for viewing the detailed overview of PagSeguro Digital's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

PagSeguro Digital (PagSeguro Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » PagSeguro Digital Ltd (NYSE:PAGS) » Definitions » Gross Margin %

Comparable Companies

ACIW EVTC PAYO FOUR MQ DOCN RAMP PAY RPD EVCM MSFT ORCL ADBE PANW SNPS VMW FTNT CRWD PLTR SPLK

Traded in Other Exchanges

PAGS34:Brazil

Address

Avenue Brigadeiro Faria Lima, 1384, 4th Floor, Parte A, Sao Paulo, SP, BRA, 01451-001

Website

https://www.pagseguro.uol.com.br

PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused primarily 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.