STONECO LTD-A (STNE) Stock Fundamental Analysis
NASDAQ:STNE - Nasdaq - KYG851581069 - Common Stock - Currency: USD
Overall STNE gets a fundamental rating of 5 out of 10. We evaluated STNE against 101 industry peers in the Financial Services industry. STNE has only an average score on both its financial health and profitability. STNE is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
STNE had positive earnings in the past year.
STNE had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: STNE reported negative net income in multiple years.
STNE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STNE's Return On Assets of -2.76% is on the low side compared to the rest of the industry. STNE is outperformed by 84.16% of its industry peers.
The Return On Equity of STNE (-12.87%) is worse than 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 11.84%.
The 3 year average ROIC (23.17%) for STNE is below the current ROIC(23.79%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
STNE has a better Operating Margin (47.02%) than 88.12% of its industry peers.
In the last couple of years the Operating Margin of STNE has declined.
STNE has a Gross Margin of 74.44%. This is amongst the best in the industry. STNE outperforms 84.16% of its industry peers.
In the last couple of years the Gross Margin of STNE has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STNE is creating value.
STNE has less shares outstanding than it did 1 year ago.
STNE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STNE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that STNE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, STNE is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
STNE has a Debt/Equity ratio of 0.67. This is a neutral value indicating STNE is somewhat dependend on debt financing.
STNE has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACC1.81
WACC13.12%
2.3 Liquidity
A Current Ratio of 1.37 indicates that STNE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, STNE is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.37, STNE is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
STNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.00%, 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.
The Revenue has grown by 8.83% in the past year. This is quite good.
The Revenue has been growing by 38.77% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)52%
EPS 3Y115.64%
EPS 5Y18.81%
EPS Q2Q%28.41%
Revenue 1Y (TTM)8.83%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%11.1%
3.2 Future
The Earnings Per Share is expected to grow by 19.33% on average over the next years. This is quite good.
STNE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.15% yearly.
EPS Next Y16.21%
EPS Next 2Y20.95%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue Next Year15.24%
Revenue Next 2Y11.39%
Revenue Next 3Y10.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.77, the valuation of STNE can be described as very reasonable.
Based on the Price/Earnings ratio, STNE is valued a bit cheaper than 64.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of STNE to the average of the S&P500 Index (27.85), we can say STNE is valued rather cheaply.
The Price/Forward Earnings ratio is 9.29, which indicates a very decent valuation of STNE.
Based on the Price/Forward Earnings ratio, STNE is valued a bit cheaper than the industry average as 61.39% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.77. STNE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STNE is valued cheaply inside the industry as 98.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STNE's earnings are expected to grow with 19.33% in the coming years.
PEG (NY)0.66
PEG (5Y)0.57
EPS Next 2Y20.95%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
STNE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.89
-0.17 (-1.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners75.14%
Inst Owner Change0.09%
Ins Owners3.1%
Ins Owner ChangeN/A
Market Cap3.81B
Analysts76
Price Target14.38 (3.53%)
Short Float %13.79%
Short Ratio4.56
Dividend
| Industry Rank | Sector 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)3.57%
PT rev (3m)-6.71%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-10.67%
EPS NY rev (1m)5.25%
EPS NY rev (3m)6.32%
Revenue NQ rev (1m)-3.17%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.29 | ||
| P/S | 1.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.82 | ||
| P/tB | 3.39 | ||
| EV/EBITDA | 1.49 |
EPS(TTM)1.29
EY9.29%
EPS(NY)1.49
Fwd EY10.76%
FCF(TTM)-3.18
FCFYN/A
OCF(TTM)-2.35
OCFYN/A
SpS8.61
BVpS7.65
TBVpS4.1
PEG (NY)0.66
PEG (5Y)0.57
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.55 |
F-Score2
WACC13.12%
ROIC/WACC1.81
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)52%
EPS 3Y115.64%
EPS 5Y18.81%
EPS Q2Q%28.41%
EPS Next Y16.21%
EPS Next 2Y20.95%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue 1Y (TTM)8.83%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%11.1%
Revenue Next Year15.24%
Revenue Next 2Y11.39%
Revenue Next 3Y10.15%
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