By analyzing existing technical and fundamental indicators between PagSeguro Digital and Adobe, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Adobe with a short position in PagSeguro Digital. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. PagSeguro Digital has an asset utilization ratio of 268.07 percent. This connotes that the company is making $2.68 for each dollar of assets. An increasing asset utilization means that PagSeguro Digital is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as PagSeguro or Marqeta is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is PagSeguro Digital's Liquidity
PagSeguro Digital
financial leverage refers to using borrowed capital as a funding source to finance PagSeguro Digital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PagSeguro Digital financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to PagSeguro Digital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of PagSeguro Digital's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between PagSeguro Digital's total debt and its cash.
Correlation Between PagSeguro and Marqeta
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding PagSeguro Digital together with similar or unrelated positions with a negative correlation. For example, you can also add Marqeta to your portfolio. If Marqeta is not perfectly correlated to PagSeguro Digital it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When PagSeguro Digital, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both PagSeguro Digital and Marqeta in your portfolio? Please note if you are using this as a pair-trade strategy between PagSeguro Digital and Marqeta, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between PAGS and MQ for more information.
What is driving PagSeguro Digital Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check PagSeguro Digital revenue. Based on the latest financial disclosure, PagSeguro Digital reported 13.17
B of revenue. This is 223.14% higher than that of the Technology sector and significantly higher than that of the
Software—Infrastructure industry. The revenue for all United States stocks is 39.59% lower than that of the stock. As for Adobe Systems we see revenue of 17.19
B, which is much higher than that of the Software—Infrastructure
| PagSeguro | 13.17 Billion |
| Sector | 0.0 |
| Adobe | 17.19 Billion |
Will PagSeguro retail investors exit after the fall?
Standard deviation is down to 5.01. It may connote a possible volatility fall. PagSeguro Digital exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate PagSeguro Digital individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about PagSeguro Digital future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PagSeguro Digital's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact PagSeguro Digital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on PagSeguro Digital
While some other firms in the software—infrastructure industry are either recovering or due for a correction, PagSeguro may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current PagSeguro valuation and our trade advice on PagSeguro Digital is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to PagSeguro Digital.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of PagSeguro Digital. Please refer to our
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