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PagSeguro Digital (PagSeguro Digital) Operating Margin % : -15.03% (As of Dec. 2023)


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What is PagSeguro Digital Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. PagSeguro Digital's Operating Income for the three months ended in Dec. 2023 was $-75 Mil. PagSeguro Digital's Revenue for the three months ended in Dec. 2023 was $498 Mil. Therefore, PagSeguro Digital's Operating Margin % for the quarter that ended in Dec. 2023 was -15.03%.

Warning Sign:

PagSeguro Digital Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7.2%.

The historical rank and industry rank for PagSeguro Digital's Operating Margin % or its related term are showing as below:

PAGS' s Operating Margin % Range Over the Past 10 Years
Min: -36.32   Med: -15.28   Max: -1.6
Current: -14.06


PAGS's Operating Margin % is ranked worse than
72.44% of 2758 companies
in the Software industry
Industry Median: 3.12 vs PAGS: -14.06

PagSeguro Digital's 5-Year Average Operating Margin % Growth Rate was -7.20% per year.

PagSeguro Digital's Operating Income for the three months ended in Dec. 2023 was $-75 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-256 Mil.


PagSeguro Digital Operating Margin % Historical Data

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.

* Premium members only.

PagSeguro Digital Operating Margin % Chart

PagSeguro Digital Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.76 -9.87 -20.52 -13.24 -14.04

PagSeguro Digital Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.31 -12.44 -13.15 -15.36 -15.03

Competitive Comparison of PagSeguro Digital's Operating Margin %

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's Operating Margin % Distribution in the 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.



PagSeguro Digital Operating Margin % Calculation

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. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-258.754 / 1842.369
=-14.04 %

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

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-74.862 / 498.169
=-15.03 %

* 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  (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 Nokia’s 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

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PagSeguro Digital (PagSeguro Digital) Business Description

Traded in Other Exchanges
Address
Avenue Brigadeiro Faria Lima, 1384, 4th Floor, Parte A, Sao Paulo, SP, BRA, 01451-001
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.

PagSeguro Digital (PagSeguro Digital) Headlines