STONECO LTD-A (STNE)
KYG851581069 - Common Stock
Overall STNE gets a fundamental rating of 6 out of 10. We evaluated STNE against 102 industry peers in the Financial Services industry. While STNE has a great profitability rating, there are some minor concerns on its financial health. STNE is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year STNE was profitable.
In the past year STNE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: STNE reported negative net income in multiple years.
Of the past 5 years STNE 4 years had a positive operating cash flow.
1.2 Ratios
STNE has a better Return On Assets (3.27%) than 69.61% of its industry peers.
STNE's Return On Equity of 10.89% is in line compared to the rest of the industry. STNE outperforms 52.94% of its industry peers.
STNE has a Return On Invested Capital of 25.22%. This is amongst the best in the industry. STNE outperforms 96.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STNE is significantly above the industry average of 7.99%.
The 3 year average ROIC (18.72%) for STNE is below the current ROIC(25.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 10.89% | ||
| ROIC | 25.22% |
ROA(3y)-0.4%
ROA(5y)1.12%
ROE(3y)-1.06%
ROE(5y)3.2%
ROIC(3y)18.72%
ROIC(5y)15.56%
1.3 Margins
With a decent Profit Margin value of 13.07%, STNE is doing good in the industry, outperforming 63.73% of the companies in the same industry.
STNE's Profit Margin has declined in the last couple of years.
The Operating Margin of STNE (49.83%) is better than 88.24% of its industry peers.
In the last couple of years the Operating Margin of STNE has remained more or less at the same level.
With an excellent Gross Margin value of 75.52%, STNE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STNE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.83% | ||
| PM (TTM) | 13.07% | ||
| GM | 75.52% |
OM growth 3Y4.08%
OM growth 5Y1.14%
PM growth 3Y-20.31%
PM growth 5Y-7.29%
GM growth 3Y-0.53%
GM growth 5Y-1.03%
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 more shares outstanding
STNE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STNE has been reduced compared to a year ago.
2.2 Solvency
STNE has an Altman-Z score of 1.76. 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 1.76. This is in the better half of the industry: STNE outperforms 72.55% of its industry peers.
STNE has a debt to FCF ratio of 12.62. This is a negative value and a sign of low solvency as STNE would need 12.62 years to pay back of all of its debts.
The Debt to FCF ratio of STNE (12.62) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.25 indicates that STNE is not too dependend on debt financing.
STNE has a Debt to Equity ratio of 0.25. This is in the better half of the industry: STNE outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 12.62 | ||
| Altman-Z | 1.76 |
ROIC/WACC2.67
WACC9.46%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STNE should not have too much problems paying its short term obligations.
The Current ratio of STNE (1.27) is comparable to the rest of the industry.
A Quick Ratio of 1.27 indicates that STNE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.27, STNE is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
STNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 137.50%, which is quite impressive.
The Earnings Per Share has been growing by 31.61% on average over the past years. This is a very strong growth
STNE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.86%.
The Revenue has been growing by 50.47% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)137.5%
EPS 3Y13.25%
EPS 5Y31.61%
EPS growth Q2Q144.44%
Revenue 1Y (TTM)22.86%
Revenue growth 3Y54.44%
Revenue growth 5Y50.47%
Revenue growth Q2Q11.32%
3.2 Future
Based on estimates for the next years, STNE will show a very strong growth in Earnings Per Share. The EPS will grow by 32.73% on average per year.
STNE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.30% yearly.
EPS Next Y46.05%
EPS Next 2Y32.75%
EPS Next 3Y28.24%
EPS Next 5Y32.73%
Revenue Next Year9.26%
Revenue Next 2Y9.91%
Revenue Next 3Y8.98%
Revenue Next 5Y12.3%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.99 indicates a rather expensive valuation of STNE.
Compared to the rest of the industry, the Price/Earnings ratio of STNE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of STNE to the average of the S&P500 Index (27.73), we can say STNE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.33, the valuation of STNE can be described as correct.
STNE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.41, STNE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
STNE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STNE is cheaper than 99.02% of the companies in the same industry.
STNE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.41 | ||
| EV/EBITDA | 1.44 |
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.
STNE has a very decent profitability rating, which may justify a higher PE ratio.
STNE's earnings are expected to grow with 28.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)0.57
EPS Next 2Y32.75%
EPS Next 3Y28.24%
5. Dividend
5.1 Amount
STNE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STONECO LTD-A
NASDAQ:STNE (5/3/2024, 7:20:08 PM)
Premarket: 16.72 -0.01 (-0.06%)16.73
+0.46 (+2.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 12.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.39
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 10.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.83% | ||
| PM (TTM) | 13.07% | ||
| GM | 75.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)137.5%
EPS 3Y13.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y46.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.86%
Revenue growth 3Y54.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y