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STONECO LTD-A (STNE) Stock Fundamental Analysis

NASDAQ:STNE - Nasdaq - KYG851581069 - Common Stock - Currency: USD

13.915  +1 (+7.78%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to STNE. STNE was compared to 101 industry peers in the Financial Services industry. STNE has an average financial health and profitability rating. STNE is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year STNE was profitable.
In the past year STNE has reported a negative cash flow from operations.
In multiple years STNE reported negative net income over the last 5 years.
STNE had a positive operating cash flow in 4 of the past 5 years.
STNE Yearly Net Income VS EBIT VS OCF VS FCFSTNE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B

1.2 Ratios

Looking at the Return On Assets, with a value of -2.76%, STNE is doing worse than 85.15% of the companies in the same industry.
STNE's Return On Equity of -12.87% is on the low side compared to the rest of the industry. STNE is outperformed by 84.16% of its industry peers.
STNE has a Return On Invested Capital of 23.79%. This is amongst the best in the industry. STNE outperforms 96.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STNE is significantly above the industry average of 11.69%.
The 3 year average ROIC (23.17%) for STNE is below the current ROIC(23.79%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -2.76%
ROE -12.87%
ROIC 23.79%
ROA(3y)-0.24%
ROA(5y)-0.25%
ROE(3y)-2%
ROE(5y)-2.06%
ROIC(3y)23.17%
ROIC(5y)17.28%
STNE Yearly ROA, ROE, ROICSTNE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

1.3 Margins

STNE's Operating Margin of 47.02% is amongst the best of the industry. STNE outperforms 88.12% of its industry peers.
STNE's Operating Margin has declined in the last couple of years.
The Gross Margin of STNE (74.44%) is better than 84.16% of its industry peers.
In the last couple of years the Gross Margin of STNE has declined.
Industry RankSector Rank
OM 47.02%
PM (TTM) N/A
GM 74.44%
OM growth 3Y5.11%
OM growth 5Y-3.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.1%
GM growth 5Y-2.25%
STNE Yearly Profit, Operating, Gross MarginsSTNE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STNE is creating value.
Compared to 1 year ago, STNE has less shares outstanding
Compared to 5 years ago, STNE has more shares outstanding
The debt/assets ratio for STNE is higher compared to a year ago.
STNE Yearly Shares OutstandingSTNE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
STNE Yearly Total Debt VS Total AssetsSTNE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

STNE has an Altman-Z score of 1.52. This is a bad value and indicates that STNE is not financially healthy and even has some risk of bankruptcy.
STNE has a Altman-Z score of 1.52. This is in the better half of the industry: STNE outperforms 72.28% of its industry peers.
STNE has a Debt/Equity ratio of 0.67. This is a neutral value indicating STNE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, STNE perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z 1.52
ROIC/WACC2.7
WACC8.81%
STNE Yearly LT Debt VS Equity VS FCFSTNE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

2.3 Liquidity

A Current Ratio of 1.37 indicates that STNE should not have too much problems paying its short term obligations.
STNE has a better Current ratio (1.37) than 67.33% of its industry peers.
STNE has a Quick Ratio of 1.37. This is a normal value and indicates that STNE is financially healthy and should not expect problems in meeting its short term obligations.
STNE has a better Quick ratio (1.37) than 68.32% of its industry peers.
Industry RankSector Rank
Current Ratio 1.37
Quick Ratio 1.37
STNE Yearly Current Assets VS Current LiabilitesSTNE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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8

3. Growth

3.1 Past

STNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.83%, which is quite impressive.
Measured over the past years, STNE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.81% on average per year.
Looking at the last year, STNE shows a quite strong growth in Revenue. The Revenue has grown by 8.83% in the last year.
STNE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.77% yearly.
EPS 1Y (TTM)42.83%
EPS 3Y115.64%
EPS 5Y18.81%
EPS Q2Q%38.73%
Revenue 1Y (TTM)8.83%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%18.96%

3.2 Future

The Earnings Per Share is expected to grow by 17.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.01% on average over the next years. This is quite good.
EPS Next Y16.51%
EPS Next 2Y19.83%
EPS Next 3Y17.12%
EPS Next 5YN/A
Revenue Next Year16.36%
Revenue Next 2Y12.16%
Revenue Next 3Y10.01%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
STNE Yearly Revenue VS EstimatesSTNE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
STNE Yearly EPS VS EstimatesSTNE Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.16 indicates a reasonable valuation of STNE.
Compared to the rest of the industry, the Price/Earnings ratio of STNE indicates a somewhat cheap valuation: STNE is cheaper than 67.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STNE to the average of the S&P500 Index (26.03), we can say STNE is valued rather cheaply.
STNE is valuated cheaply with a Price/Forward Earnings ratio of 7.61.
Based on the Price/Forward Earnings ratio, STNE is valued a bit cheaper than the industry average as 71.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STNE to the average of the S&P500 Index (21.94), we can say STNE is valued rather cheaply.
Industry RankSector Rank
PE 10.16
Fwd PE 7.61
STNE Price Earnings VS Forward Price EarningsSTNE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

STNE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STNE is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 1.24
STNE Per share dataSTNE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

STNE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STNE's earnings are expected to grow with 17.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)0.54
EPS Next 2Y19.83%
EPS Next 3Y17.12%

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0

5. Dividend

5.1 Amount

STNE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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STONECO LTD-A

NASDAQ:STNE (5/22/2025, 12:10:01 PM)

13.915

+1 (+7.78%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-12 2025-08-12/amc
Inst Owners75.14%
Inst Owner Change-1.78%
Ins Owners3.1%
Ins Owner ChangeN/A
Market Cap3.78B
Analysts80
Price Target15.08 (8.37%)
Short Float %12.06%
Short Ratio4.61
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.2%
Min EPS beat(2)7.13%
Max EPS beat(2)13.26%
EPS beat(4)3
Avg EPS beat(4)5.32%
Min EPS beat(4)-2.91%
Max EPS beat(4)13.26%
EPS beat(8)7
Avg EPS beat(8)8.19%
EPS beat(12)11
Avg EPS beat(12)32.47%
EPS beat(16)12
Avg EPS beat(16)20.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-2.75%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-1.46%
Revenue beat(8)0
Avg Revenue beat(8)-2.11%
Revenue beat(12)3
Avg Revenue beat(12)0.76%
Revenue beat(16)5
Avg Revenue beat(16)2.06%
PT rev (1m)13.16%
PT rev (3m)6.35%
EPS NQ rev (1m)9.66%
EPS NQ rev (3m)14.9%
EPS NY rev (1m)0.26%
EPS NY rev (3m)18.07%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)2.44%
Valuation
Industry RankSector Rank
PE 10.16
Fwd PE 7.61
P/S 1.62
P/FCF N/A
P/OCF N/A
P/B 1.82
P/tB 3.39
EV/EBITDA 1.24
EPS(TTM)1.37
EY9.85%
EPS(NY)1.83
Fwd EY13.14%
FCF(TTM)-3.18
FCFYN/A
OCF(TTM)-2.35
OCFYN/A
SpS8.61
BVpS7.65
TBVpS4.1
PEG (NY)0.62
PEG (5Y)0.54
Profitability
Industry RankSector Rank
ROA -2.76%
ROE -12.87%
ROCE 29.29%
ROIC 23.79%
ROICexc 75.24%
ROICexgc 398.56%
OM 47.02%
PM (TTM) N/A
GM 74.44%
FCFM N/A
ROA(3y)-0.24%
ROA(5y)-0.25%
ROE(3y)-2%
ROE(5y)-2.06%
ROIC(3y)23.17%
ROIC(5y)17.28%
ROICexc(3y)56.64%
ROICexc(5y)40.18%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)28.53%
ROCE(5y)21.28%
ROICexcg growth 3Y107.85%
ROICexcg growth 5Y63.64%
ROICexc growth 3Y68.5%
ROICexc growth 5Y19.67%
OM growth 3Y5.11%
OM growth 5Y-3.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.1%
GM growth 5Y-2.25%
F-Score2
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Debt/EBITDA 1.1
Cap/Depr 133.96%
Cap/Sales 9.59%
Interest Coverage 7.97
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.37
Quick Ratio 1.37
Altman-Z 1.52
F-Score2
WACC8.81%
ROIC/WACC2.7
Cap/Depr(3y)120.71%
Cap/Depr(5y)159.13%
Cap/Sales(3y)8.94%
Cap/Sales(5y)12.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.83%
EPS 3Y115.64%
EPS 5Y18.81%
EPS Q2Q%38.73%
EPS Next Y16.51%
EPS Next 2Y19.83%
EPS Next 3Y17.12%
EPS Next 5YN/A
Revenue 1Y (TTM)8.83%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%18.96%
Revenue Next Year16.36%
Revenue Next 2Y12.16%
Revenue Next 3Y10.01%
Revenue Next 5YN/A
EBIT growth 1Y2.68%
EBIT growth 3Y35.93%
EBIT growth 5Y33.96%
EBIT Next Year35.1%
EBIT Next 3Y12.8%
EBIT Next 5YN/A
FCF growth 1Y-1218.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-319.78%
OCF growth 3YN/A
OCF growth 5YN/A