This firm conducts business under
Technology sector and is part of
Software—Infrastructure industry.
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.
Investing in PagSeguro Digital, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding PagSeguro Digital along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of PagSeguro Digital's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as PagSeguro Digital. Your research has to be compared to or analyzed against PagSeguro Digital's peers to derive any actionable benefits. When done correctly, PagSeguro Digital's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in PagSeguro Digital.
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.
PagSeguro Digital Gross Profit
PagSeguro Digital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing PagSeguro Digital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show PagSeguro Digital Gross Profit growth over the last 10 years. Please check PagSeguro Digital's
gross profit and other
fundamental indicators for more details.
PagSeguro Digital Correlation with Peers
Investors in PagSeguro can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PagSeguro Digital. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PagSeguro Digital and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PagSeguro is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of PagSeguro for more details
What is driving PagSeguro Digital Investor Appetite?
PagSeguro Digital maintains Sharpe Ratio (i.e., Efficiency) of -0.11, which implies the firm had -0.11% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. PagSeguro Digital exposes twenty-seven different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to check PagSeguro Digital
risk adjusted performance of
(0.09), and Coefficient Of Variation of
(1,523) to confirm the risk estimate we provide.
Will PagSeguro Digital continue to go crazy?
Latest jensen alpha indicator falls down to -0.41. Possible price gain? PagSeguro Digital exhibits very low volatility with skewness of 0.02 and kurtosis of 0.07. However, we advise investors to further study PagSeguro Digital technical indicators to ensure that all market info is available and is reliable. 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 firms in the software—infrastructure industry are either recovering or due for a correction, PagSeguro Digital may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of PagSeguro as the current risk-reward utility is not appealing enough. 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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