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Empreendimentos Pague Menos S.A (PGMN3) Fair Value & Analysis

Healthcare · BR · Market cap R$2.5B

EP Empreendimentos Pague Menos S.A PGMN3 · SA
PriceR$3.47
Fair ValueR$7.31
Upside+110.7%
Quality43/100
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Expensive Growth
Thin margins · 2.0% net margin
Moderate debt · negative free cash flow
6.88% dividend yield
Ranks above peers (11/13)
Narrow moat 38/100
Evidence: High Range R$3.58 – R$9.49 Share as image

Fair value as of: Jul 16, 2026

From 17 valuation models · updated 24 days ago

Fair value updated Jul 16, 2026, revised from R$7.30 to R$7.31 (+0.1%) since Jun 25, 2026. Share price −3.6% over the past month.

Below-average quality, screening 111% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (R$3.58). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (R$3.58 to R$9.49). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

R$10.10 R$1.94 Fair Value R$7.31 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range R$1.94 – R$10.10 · fair‑value band R$3.58 – R$9.49 · the R$3.47 price screens below the R$7.31 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Empreendimentos Pague Menos S.A (PGMN3) currently trades at R$3.47, while our model-based Fair Value estimate is R$7.31, implying the stock looks roughly 110.7% undervalued today. The Quality Score stands at 43/100 (below-average quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Trailing-twelve-month revenue stands at R$14.9B. Revenue grew 19.1% year over year. It earns a return on equity of 9.0%. Net debt stands at R$3.5B. Fundamentals as of Jul 16, 2026

Our scenario range runs from R$3.58 (bear case) to R$9.49 (bull case); at R$3.47, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 54% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -14% fair-value upside, at 111%, PGMN3 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income R$3.58 R$3.86 R$4.36 76
ROIC Compounder R$9.06 R$12.97 R$18.16 72
Gordon GGM R$2.15 R$4.29 R$6.49 70
All 17 models by family
DCF Models
Owner Earnings R$8.17 R$16.63 R$31.27 31
Earnings-Based
Graham-Dodd R$2.46 R$12.42 R$17.15 54
Lynch FV R$3.37 R$4.81 R$6.26 50
PEG = 1.0 R$3.37 R$4.81 R$6.26 46
EPV R$7.76 R$9.29 R$10.60 59
Dividend Discount
Gordon GGM R$2.15 R$4.29 R$6.49 70
DDM Multi-Stage R$2.15 R$3.70 R$4.53 61
Multiples
P/E Multiple R$5.69 R$7.59 R$9.49 63
P/S Multiple R$4.61 R$6.14 R$7.68 58
P/B Multiple R$4.61 R$6.14 R$7.68 55
EV/EBIT R$13.15 R$18.16 R$23.18 53
EV/EBITDA R$16.74 R$22.95 R$29.16 54
EV/Revenue R$8.85 R$13.45 R$18.05 43
Asset-Based
NCAV (Graham) R$2.14 R$2.87 R$4.28 50
Economic Profit
Residual Income R$3.58 R$3.86 R$4.36 76
ROIC Compounder R$9.06 R$12.97 R$18.16 72
Growth Earnings
Growth-Adj P/E R$5.12 R$7.31 R$9.50 68

Widest divergence: DCF Models (R$16.63) versus Asset-Based (R$2.87). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) R$15.3B
Revenue growth (YoY) +13.0%
Net margin 2.0%
Return on equity 10.1%
Free cash flow −R$13.9M FY2025
P/E ratio 7.2
More key figures
Operating margin 5.0%
EPS (TTM) R$0.4900
Dividend yield 6.9%
EPS growth (YoY) +840%
Net debt R$3.5B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 43 · Market factors (momentum, volatility) 31

Profitability 55
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 22
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Empreendimentos Pague Menos S.A. engages in the retail sale of medicines, perfumeries, and personal hygiene and beauty products in Brazil.

Full company description

Empreendimentos Pague Menos S.A. engages in the retail sale of medicines, perfumeries, and personal hygiene and beauty products in Brazil. The company offers medicines and health care products; personal hygiene products, including deodorant, intimate care, and oral hygiene; foot, hair, face, and hand care products; dermo and beauty products; and repellent, diaper, cloth, and food products, as well as other accessories for moms and babies. The company also offers vaccines, clinical analysis tests, and basic health services; clothing and accessories, supplements, first aid, food and drinks, chocolates, ice creams, popsicles, toys, pet and home products, laptop accessories, utilities, and others; and cereals, fibers, vitamins and minerals, first aid, and herbal medicines and natural products. It sells its products through retail stores and online. Empreendimentos Pague Menos S.A. was incorporated in 1981 and is based in Fortaleza, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Empreendimentos Pague Menos S.A reported revenue of R$14.9B in FY2025 versus R$7.5B in FY2021, a compound +18.6%/yr. Reported net income was R$260M in FY2025, compounding +12.2%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
R$14.9B
Latest YoY
+17.9%
Avg. growth/yr (3Y)
+17.5%
Avg. growth/yr (5Y)
+16.8%
Avg. growth/yr (16Y)
+14.1%
Revenue +18.6%/yr
FY21 R$7.5B
FY22 R$9.2B
FY23 R$11.2B
FY24 R$12.6B
FY25 R$14.9B
Net income +12.2%/yr
FY21 R$164M
FY22 R$264M
FY23 R$219K
FY24 R$103M
FY25 R$260M

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Cite: Fair Value Calculator (2026). "Empreendimentos Pague Menos S.A Fair Value". https://www.fairvalue-calculator.com/stock/PGMN3

Peer Group

Pharmaceutical Retailers · 61 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Bottom 25%
Fair Value upside +111% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 2% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 13% · Above median
Dividend yield (TTM) 6.9% · Top 25%
Debt / equity 0.50× · Higher than 75% of peers

Valuation Multiples vs Pharmaceutical Retailers median · lower = cheaper

P/E (TTM) 7.2× · Cheaper than 75% of peers
P/B 0.16× · Cheaper than 75% of peers
P/S (TTM) 0.03× · Cheaper than 75% of peers
EV/EBITDA 1.9× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 21
FUTURE 65 · sector 19
PAST 40 · sector 19
HEALTH 75 · sector 97
DIVIDEND 100 · sector 66

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Pharmaceutical Retailers stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
JD Health International Inc 6618 HK$39.20 HK$33.28 -15%
Raia Drogasil S.A RADL3 R$18.20 R$15.58 -14%
Yifeng Pharmacy Chain Co 603939 ¥20.24 ¥29.07 +44%
DaShenLin Pharmaceutical Group 603233 ¥17.81 ¥23.86 +34%
Corporativo Fragua, S.A. FRAGUAB 463.00 MXN 821.18 MXN +77%
LBX Pharmacy Chain Joint Stock Company 603883 ¥11.51 ¥10.57 -8%
MedPlus Health Services Limited MEDPLUS ₹690.20 ₹379.25 -45%
Yixintang Pharmaceutical Group 002727 ¥11.46 ¥9.45 -18%
Anhui Huaren Health Pharmaceutical Co 301408 ¥14.40 ¥10.05 -30%
Apotea AB APOTEA kr 74.75 kr 43.95 -41%

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Frequently asked questions

Is Empreendimentos Pague Menos S.A (PGMN3) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of R$7.31 versus a price of R$3.47, about +111% (undervalued).
What is the fair value of PGMN3?
Our model-based fair value for Empreendimentos Pague Menos S.A is R$7.31 (as of Jul 16, 2026), built from audited fundamentals. The current price is R$3.47.
What is the quality score of PGMN3?
Empreendimentos Pague Menos S.A has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Empreendimentos Pague Menos S.A (PGMN3)?
Empreendimentos Pague Menos S.A reported trailing-twelve-month revenue of about R$14.9B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of PGMN3?
The net profit margin of Empreendimentos Pague Menos S.A is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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