PagBank (PAGS), Brazil’s fast‑growing digital bank - A beginner‑friendly breakdown

Discover how to pick winning stocks and beat the S&P 500 with Tony Kynaston's proven QAV (Quality at Value) investing methodology.

It's a systematic checklist for identifying undervalued quality companies, timing buys and sells with a "three-point trend line" and avoiding market noise. QAV America has delivered 64% returns since September 2023 vs. the S&P 500's 54%, perfect for beginners and pros seeking long-term compounding.

This week I spoke with Cameron Reilly from the QAV Investing Podcast for another episode of Weekend Watchlist. We looked at PagBank (NYSE: PAGS), Brazil’s fast-growing digital bank and payments leader, formerly known as PagSeguro.

PagBank now serves 34 million customers through one super app offering payments, accounts, cards, loans, investments and more. In Q4 2025 the company reported recurring net income of R$678 million, 12.4% revenue growth, and an ROAE (Return on Average Equity) of 18.4% — a solid measure of banking profitability.

The banking side of the business is expanding quickly, with revenue up 51% for the full year, while the legacy payments business grew a respectable 9%. The stock has had a decent run but still trades at a low forward P/E and recently paid a small US dividend.

Cameron walked me through the numbers in Brazilian reais and explained why high Selic rates (around 14.75%) make life challenging for banks and borrowers in Brazil. He also covered ownership structure, competition from larger players like Nubank, new CEO background, and the political/economic backdrop.Using the QAV process, Cameron scored PagBank highly on operating cash flow, quality metrics, and overall attractiveness. It landed a strong QAV score and he added it to the QAV Light portfolio. As of mid-April 2026 the stock was trading around US$11.50.

Learn about the checklist manifesto, operating cash flow focus, and why QAV is expanding to cover US stocks. Use promo code SFBUS for 20% off QAV plans: QAV Club America (annual/monthly) for full tools and community, or QAV America Light for simple buy/sell signals. Start your 14-day free trial by clicking this link. Subscribe to this channel for more stock picking tips, value investing strategies, and market-beating ideas.

Australian and investing in the ASX and ready to go beyond ETFs, learn from the master - Tony Kynaston’s QUALITY AT VALUE. Sign up with code SFB for a 20% discount on QAV Club plan or SFBLIGHT for a free month of QAV Light by clicking this link. for Australians or those wanting to invest in Australian stocks.

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