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STONECO LTD-A (STNE) Stock Fundamental Analysis

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

14.045  -0.3 (-2.13%)

Fundamental Rating

5

STNE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. STNE has only an average score on both its financial health and profitability. 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

STNE had positive earnings in the past year.
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.
Of the past 5 years STNE 4 years had a positive operating cash flow.
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

STNE has a worse Return On Assets (-2.55%) than 86.87% of its industry peers.
The Return On Equity of STNE (-12.03%) is worse than 84.85% of its industry peers.
With an excellent Return On Invested Capital value of 24.75%, STNE belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STNE is significantly above the industry average of 11.83%.
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 RankSector 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%
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 47.59% is amongst the best of the industry. STNE outperforms 87.88% of its industry peers.
STNE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 74.62%, STNE belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Gross Margin of STNE has declined.
Industry RankSector 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%
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

STNE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
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

Based on the Altman-Z score of 1.62, 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 1.62, STNE is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that STNE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, STNE perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF N/A
Altman-Z 1.62
ROIC/WACC2.77
WACC8.93%
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

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.
The Current ratio of STNE (1.39) is better than 66.67% of its industry peers.
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 67.68% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.39
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.
STNE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.81% yearly.
The Revenue has grown by 10.25% in the past year. This is quite good.
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)10.25%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%18.96%

3.2 Future

Based on estimates for the next years, STNE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.12% on average per year.
Based on estimates for the next years, STNE will show a quite strong growth in Revenue. The Revenue will grow by 10.13% on average per year.
EPS Next Y16.51%
EPS Next 2Y19.83%
EPS Next 3Y17.12%
EPS Next 5YN/A
Revenue Next Year16.17%
Revenue Next 2Y11.91%
Revenue Next 3Y10.13%
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.
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

The Price/Earnings ratio is 10.10, which indicates a very decent valuation of STNE.
Based on the Price/Earnings ratio, STNE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
STNE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 7.56, the valuation of STNE can be described as very cheap.
Based on the Price/Forward Earnings ratio, STNE is valued a bit cheaper than the industry average as 67.68% of the companies are valued more expensively.
STNE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.1
Fwd PE 7.56
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

Based on the Enterprise Value to EBITDA ratio, STNE is valued cheaply inside the industry as 95.96% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.29
STNE Per share dataSTNE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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 17.12% in the coming years.
PEG (NY)0.61
PEG (5Y)0.54
EPS Next 2Y19.83%
EPS Next 3Y17.12%

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0

5. Dividend

5.1 Amount

No dividends for STNE!.
Industry RankSector Rank
Dividend Yield N/A

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STONECO LTD-A

NASDAQ:STNE (6/12/2025, 11:11:08 AM)

14.045

-0.3 (-2.13%)

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-2.37%
Ins Owners3.1%
Ins Owner ChangeN/A
Market Cap3.81B
Analysts82
Price Target16.34 (16.34%)
Short Float %10.4%
Short Ratio4.16
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)10.28%
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)13.6%
PT rev (3m)17.65%
EPS NQ rev (1m)4.51%
EPS NQ rev (3m)18.62%
EPS NY rev (1m)0.26%
EPS NY rev (3m)16.01%
Revenue NQ rev (1m)-2.78%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)2.16%
Valuation
Industry RankSector Rank
PE 10.1
Fwd PE 7.56
P/S 1.54
P/FCF N/A
P/OCF N/A
P/B 1.86
P/tB 3.58
EV/EBITDA 3.29
EPS(TTM)1.39
EY9.9%
EPS(NY)1.86
Fwd EY13.23%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)-0.35
OCFYN/A
SpS9.14
BVpS7.54
TBVpS3.92
PEG (NY)0.61
PEG (5Y)0.54
Profitability
Industry RankSector 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 RankSector 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 1.62
F-Score3
WACC8.93%
ROIC/WACC2.77
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)10.25%
Revenue growth 3Y29.32%
Revenue growth 5Y38.77%
Sales Q2Q%18.96%
Revenue Next Year16.17%
Revenue Next 2Y11.91%
Revenue Next 3Y10.13%
Revenue Next 5YN/A
EBIT growth 1Y5.39%
EBIT growth 3Y35.93%
EBIT growth 5Y33.96%
EBIT Next Year40.46%
EBIT Next 3Y16.17%
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