PagSeguro DigitalPAGS +0.11%90 Operating Margin % is 40.13% as of Mar. 2026, which is 22% above its 10-year median of 32.96. 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 2,818 Software companies, PagSeguro Digital ranks better than 97.84% on this metric.
PagSeguro Digital (NYSE:PAGS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
PagSeguro Digital Operating Margin % Related Terms
PagSeguro Digital Operating Margin % Historical Data
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The historical data trend for PagSeguro Digital's Operating 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: Operating Margin % Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
PagSeguro Digital's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
PagSeguro Digital (PAGS) has a Operating Margin % of 40.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PagSeguro Digital and its competitors. This is 22% above median its historical median of 32.96. Over the past decade, PagSeguro Digital's Operating Margin % has ranged from 20.23 to 40.19. According to the industry distribution chart, PagSeguro Digital ranks #61 out of 2818 companies in the Software industry, placing it in the top 2.2%.
Is PagSeguro Digital's Operating Margin % too high?
PagSeguro Digital's current Operating Margin % of 40.13% is 22% above median its 10-year median of 32.96. Over the past 10 years, this metric has ranged from a low of 20.23 to a high of 40.19. The Software industry median Operating Margin % is 3.88. PagSeguro Digital's value of 40.13% is 935.6% above this industry median. Based on the distribution chart, PagSeguro Digital ranks #61 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to CALX and EEFT?
According to the Software industry distribution chart, PagSeguro Digital ranks #61 out of 2818 companies for Operating Margin %. This places PagSeguro Digital in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. PagSeguro Digital's value of 40.13% is 935.6% above this benchmark. Historically, PagSeguro Digital's own Operating Margin % has ranged from 20.23 to 40.19 over the past decade. While the company's 10-year median is 32.96 vs. the industry median of 3.88, 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PagSeguro Digital's current Operating Margin % of 40.13% is 935.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on PagSeguro Digital and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagSeguro Digital's current Operating Margin % is 40.13%, which is 22% above median its own 10-year median of 32.96. 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 Operating Margin % is 40.13%, which is 22% above median its 10-year median of 32.96 and 935.6% above the Software industry median of 3.88. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For PagSeguro Digital (PAGS), the current Operating Margin % is 40.13% 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:
Operating Margin %: 40.13% (22% above median its 10-year median of 32.96)
GF Value™: $11.93 vs. price of $8.77 (26.5% below fair value)
Industry Position: 935.6% above the Software median (#61 of 2818)
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.
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