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Market Cap

US$19.2b

Last Updated

2021/05/06 23:08 UTC

Data Sources

Company Financials +

Executive Summary

StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has StoneCo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STNE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: STNE's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-8.7%

STNE

-5.2%

US IT

-1.7%

US Market


1 Year Return

127.0%

STNE

41.3%

US IT

51.8%

US Market

Return vs Industry: STNE exceeded the US IT industry which returned 45.3% over the past year.

Return vs Market: STNE exceeded the US Market which returned 52.8% over the past year.


Shareholder returns

STNEIndustryMarket
7 Day-8.7%-5.2%-1.7%
30 Day-6.3%0.1%1.5%
90 Day-28.5%0.8%3.1%
1 Year127.0%127.0%42.6%41.3%54.4%51.8%
3 Yearn/a95.6%88.8%63.0%52.8%
5 Yearn/a203.0%183.0%127.2%101.9%

Long-Term Price Volatility Vs. Market

How volatile is StoneCo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is StoneCo undervalued compared to its fair value and its price relative to the market?

109.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STNE ($61.28) is trading above our estimate of fair value ($2.54)

Significantly Below Fair Value: STNE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STNE is poor value based on its PE Ratio (109.2x) compared to the US IT industry average (36.9x).

PE vs Market: STNE is poor value based on its PE Ratio (109.2x) compared to the US market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: STNE is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: STNE is overvalued based on its PB Ratio (6.7x) compared to the US IT industry average (4.8x).


Future Growth

How is StoneCo forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STNE's forecast earnings growth (27.6% per year) is above the savings rate (2%).

Earnings vs Market: STNE's earnings (27.6% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STNE's revenue (25.6% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: STNE's revenue (25.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STNE's Return on Equity is forecast to be low in 3 years time (16.6%).


Past Performance

How has StoneCo performed over the past 5 years?

67.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STNE has high quality earnings.

Growing Profit Margin: STNE's current net profit margins (26.9%) are lower than last year (33.6%).


Past Earnings Growth Analysis

Earnings Trend: STNE's earnings have grown significantly by 67% per year over the past 5 years.

Accelerating Growth: STNE's earnings growth over the past year (6.4%) is below its 5-year average (67% per year).

Earnings vs Industry: STNE earnings growth over the past year (6.4%) underperformed the IT industry 18.5%.


Return on Equity

High ROE: STNE's Return on Equity (5.6%) is considered low.


Financial Health

How is StoneCo's financial position?


Financial Position Analysis

Short Term Liabilities: STNE's short term assets (R$29.3B) exceed its short term liabilities (R$13.4B).

Long Term Liabilities: STNE's short term assets (R$29.3B) exceed its long term liabilities (R$3.4B).


Debt to Equity History and Analysis

Debt Level: STNE's debt to equity ratio (39.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if STNE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: STNE's debt is not well covered by operating cash flow (1%).

Interest Coverage: STNE's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

What is StoneCo current dividend yield, its reliability and sustainability?

0.20%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate STNE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STNE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STNE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STNE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STNE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Thiago Piau (30 yo)

4.33yrs

Tenure

Mr. Thiago dos Santos Piau serves as an Independent Director of Cogna Educação S.A. He has been Chief Executive Officer of StoneCo Ltd. since 2017. Prior to 2017, Mr. Piau served as Chief Operations Office...


Leadership Team

Experienced Management: STNE's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: STNE's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.3%.


Top Shareholders

Company Information

StoneCo Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: StoneCo Ltd.
  • Ticker: STNE
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$19.249b
  • Shares outstanding: 308.73m
  • Website: https://www.stone.co

Number of Employees


Location

  • StoneCo Ltd.
  • Harbour Place
  • 4th Floor
  • George Town
  • KY1-1002
  • Cayman Islands

Listings


Biography

StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 23:08
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.