PicS N.V. Class A Common Shares (PICS)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and turn accounting profits into cash. PicS N.V., as described, runs a digital wallet and payment application in Brazil, including instant payment services. That kind of transactional hub can benefit from network effects and switching costs, but the supplied figures do not yet prove a durable moat. The good news: at the 2026-10-13 close of $13.36, FairStock calculations show a P/E of 6.85, P/B of 1.39, ROE of 30.72%, and a Graham Number of $46.22, giving a 71.09% margin of safety on that calculation. The latest quarter shown, 2026-Q2, had revenue of $2.7B and net income of $269.0M, a 10.09% margin. Supplied growth figures are 62.15% for revenue and 123.70% for profit. But I cannot ignore the cash. Trailing free cash flow is -$1.3B, and FCF yield is -77.3% of the $1.6B market cap. That is not a small working-capital swing; it is a business consuming enormous cash relative to its size. Debt/equity is 0.55, ROCE is 6.96%, Piotroski is 6/9, and Altman Z-Score is 0.12—distress territory in that calculation. PEG is 0.06, which looks almost absurdly cheap if growth persists and cash burn turns positive. The lack of filed annual history, shown as 0 years, means I cannot assign a Lynch category. Mr. Graham would demand a margin of safety; here the earnings multiple and Graham Number suggest one, but the negative cash flow and faint balance sheet make that safety questionable. I would want cash generation to confirm the profits.

In plain English: PicS N.V. runs a digital wallet and payment app in Brazil. The business is growing fast and made a profit in the latest shown quarter, but it is using up a lot of cash. The stock looks cheap compared with its profits, but the cash use and debt make it risky.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer