STONECO LTD-A (STNE) Stock Fundamental Analysis
NASDAQ:STNE - Nasdaq - KYG851581069 - Common Stock - Currency: USD
STNE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the profitability and the financial health of STNE get a neutral evaluation. Nothing too spectacular is happening here. STNE is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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.
1.2 Ratios
STNE has a worse Return On Assets (-2.55%) than 86.14% of its industry peers.
STNE has a worse Return On Equity (-12.03%) than 84.16% of its industry peers.
STNE's Return On Invested Capital of 24.75% is amongst the best of the industry. STNE outperforms 97.03% 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 7.76%.
The last Return On Invested Capital (24.75%) for STNE is above the 3 year average (23.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.55% | ||
| ROE | -12.03% | ||
| ROIC | 24.75% |
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
The Operating Margin of STNE (47.59%) is better than 88.12% of its industry peers.
STNE's Operating Margin has declined in the last couple of years.
STNE has a Gross Margin of 74.62%. 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 | 47.59% | ||
| PM (TTM) | N/A | ||
| GM | 74.62% |
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.
The number of shares outstanding for STNE has been reduced compared to 1 year ago.
Compared to 5 years ago, STNE has more shares outstanding
The debt/assets ratio for STNE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that STNE is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.61, STNE is doing good in the industry, outperforming 69.31% of the companies in the same industry.
STNE has a Debt/Equity ratio of 0.74. This is a neutral value indicating STNE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, STNE is in line with its industry, outperforming 51.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.61 |
ROIC/WACC2.63
WACC9.4%
2.3 Liquidity
STNE has a Current Ratio of 1.39. This is a normal value and indicates that STNE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.39, STNE is doing good in the industry, outperforming 63.37% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that STNE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.39, STNE is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
STNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.39%, which is quite impressive.
The Earnings Per Share has been growing by 18.81% on average over the past years. This is quite good.
STNE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.83%.
The Revenue has been growing by 38.77% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)35.39%
EPS 3Y115.64%
EPS 5Y18.81%
EPS Q2Q%31.2%
Revenue 1Y (TTM)8.83%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%13.54%
3.2 Future
The Earnings Per Share is expected to grow by 16.64% 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 9.01% yearly.
EPS Next Y16.79%
EPS Next 2Y18.94%
EPS Next 3Y16.64%
EPS Next 5YN/A
Revenue Next Year15.43%
Revenue Next 2Y11.16%
Revenue Next 3Y9.01%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.50, which indicates a very decent valuation of STNE.
Based on the Price/Earnings ratio, STNE is valued a bit cheaper than 73.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of STNE to the average of the S&P500 Index (26.48), we can say STNE is valued rather cheaply.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of STNE.
Based on the Price/Forward Earnings ratio, STNE is valued a bit cheaper than the industry average as 73.27% of the companies are valued more expensively.
STNE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STNE is valued cheaper than 96.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.23 |
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 16.64% in the coming years.
PEG (NY)0.57
PEG (5Y)0.51
EPS Next 2Y18.94%
EPS Next 3Y16.64%
5. Dividend
5.1 Amount
STNE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.44
+0.94 (+6.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners83.23%
Inst Owner Change2.43%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap3.92B
Analysts82.22
Price Target16.84 (16.62%)
Short Float %8.7%
Short Ratio3.78
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)10.28%
Min EPS beat(2)7.3%
Max EPS beat(2)13.26%
EPS beat(4)4
Avg EPS beat(4)7.87%
Min EPS beat(4)3.79%
Max EPS beat(4)13.26%
EPS beat(8)7
Avg EPS beat(8)8.46%
EPS beat(12)11
Avg EPS beat(12)23.38%
EPS beat(16)13
Avg EPS beat(16)23.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-1.46%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)2
Avg Revenue beat(12)-0.53%
Revenue beat(16)5
Avg Revenue beat(16)2.87%
PT rev (1m)1.83%
PT rev (3m)11.67%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)4.78%
EPS NY rev (1m)0%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 7.67 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.86 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 3.23 |
EPS(TTM)1.52
EY10.53%
EPS(NY)1.88
Fwd EY13.03%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)-0.36
OCFYN/A
SpS9.39
BVpS7.75
TBVpS4.03
PEG (NY)0.57
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.55% | ||
| ROE | -12.03% | ||
| ROCE | 30.48% | ||
| ROIC | 24.75% | ||
| ROICexc | 39.11% | ||
| ROICexgc | 65.26% | ||
| OM | 47.59% | ||
| PM (TTM) | N/A | ||
| GM | 74.62% | ||
| 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-Score3
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 126.47% | ||
| Cap/Sales | 9.05% | ||
| Interest Coverage | 7.53 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 1.61 |
F-Score3
WACC9.4%
ROIC/WACC2.63
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)35.39%
EPS 3Y115.64%
EPS 5Y18.81%
EPS Q2Q%31.2%
EPS Next Y16.79%
EPS Next 2Y18.94%
EPS Next 3Y16.64%
EPS Next 5YN/A
Revenue 1Y (TTM)8.83%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%13.54%
Revenue Next Year15.43%
Revenue Next 2Y11.16%
Revenue Next 3Y9.01%
Revenue Next 5YN/A
EBIT growth 1Y5.39%
EBIT growth 3Y35.93%
EBIT growth 5Y33.96%
EBIT Next Year40.9%
EBIT Next 3Y14.16%
EBIT Next 5YN/A
FCF growth 1Y-253.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-125.47%
OCF growth 3YN/A
OCF growth 5YN/A