Financial Services Provider with Comeback Potential from Brazil!
A high level of receivables raises concerns for investors about potentially increasing defaults. However, if these worries dissipate as receivables are settled, there is potential for surprises in profitability development!
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Pagseguro Digital Ltd. (PAGS) is a rapidly growing payment services provider from Brazil. Collaborations with companies like Uber, iFood, and MercadoLivre have made PagSeguro Digital a preferred payment service provider in Brazil. The company now boasts 33.2 million customers and this number is on the rise. However, investors have long been concerned about the significant increase in receivables, as this has led to a negative net cash flow from operational activities. Nevertheless, investors should consider that a large portion of these receivables...
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