| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
STNE Stock Overview
StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil.
StoneCo Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$14.46 |
| 52 Week High | US$95.12 |
| 52 Week Low | US$14.02 |
| Beta | 2.36 |
| 1 Month Change | -9.23% |
| 3 Month Change | -60.75% |
| 1 Year Change | -81.70% |
| 3 Year Change | -37.38% |
| 5 Year Change | n/a |
| Change since IPO | -53.88% |
Recent News & Updates
StoneCo: Remaining Positive On Long-Term Growth Opportunities Despite Negative Sentiment
StoneCo has seen their stock pull back nearly 80% over the past year as investors have negative sentiment around high valuation and Brazilian economy risk. Fundamentally, the company has seen a lot of success growing their SMB and micro-merchants in addition to growing their Banking and Insurance products. Valuation remains attractive with the stock under $20, implying a valuation of just 20x a reasonable 2023 EPS estimate.
Are Investors Undervaluing StoneCo Ltd. (NASDAQ:STNE) By 47%?
In this article we are going to estimate the intrinsic value of StoneCo Ltd. ( NASDAQ:STNE ) by projecting its future...
Why StoneCo Stock Looks Very Attractive Amid A Historic Crash
StoneCo stock has fallen more than 70% over the last 12 months despite the strong market performance of many tech companies. At a stock price of around $17, StoneCo shares are now trading at a deep discount to the IPO price of $24. Understanding the reasons behind the stock market selloff is key to making a well-informed decision. StoneCo shareholders might be in for a tough little period ahead, but we believe the long-term outlook is bright for reasons discussed in this article.
Low Profitability and Concerning External Environment are Chipping at StoneCo (NASDAQ:STNE)
When it comes to volatility, young companies in turbulent sectors are unmatched in making or breaking a bank. After a yearly high at US$95, StoneCo (NASDAQ: STNE) is now trading close to an all-time low at US$17. Despite increasing growth and profitability, negative external developments and policy shifts are spooking the investors.
Shareholder Returns
| STNE | US IT | US Market | |
|---|---|---|---|
| 7D | -13.0% | -6.6% | -6.1% |
| 1Y | -81.7% | -9.4% | 4.2% |
Return vs Industry: STNE underperformed the US IT industry which returned -6.6% over the past year.
Return vs Market: STNE underperformed the US Market which returned 6.6% over the past year.
Price Volatility
| STNE volatility | |
|---|---|
| STNE Average Weekly Movement | 15.0% |
| IT Industry Average Movement | 8.2% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: STNE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.
Volatility Over Time: STNE's weekly volatility has increased from 10% to 15% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2000 | 7,239 | Thiago dos Piau | https://www.stone.co |
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, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical personnel and software vendors, as well as sells solutions to brick-and-mortar and digital merchants through sales team. As of December 31, 2020, the company served approximately 652,600 clients primarily small-and-medium-sized businesses; and 260 integrated partners, such as global payment service providers, digital marketplaces, and integrated software vendors.
StoneCo Fundamentals Summary
| STNE fundamental statistics | |
|---|---|
| Market Cap | R$24.19b |
| Earnings (TTM) | -R$250.42m |
| Revenue (TTM) | R$3.75b |
6.4x
P/S Ratio-96.6x
P/E RatioIs STNE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STNE income statement (TTM) | |
|---|---|
| Revenue | R$3.75b |
| Cost of Revenue | R$1.27b |
| Gross Profit | R$2.49b |
| Expenses | R$2.74b |
| Earnings | -R$250.42m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.81 |
| Gross Margin | 66.24% |
| Net Profit Margin | -6.67% |
| Debt/Equity Ratio | 47.1% |
How did STNE perform over the long term?
See historical performance and comparisonValuation
Is StoneCo undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STNE ($14.46) is trading below our estimate of fair value ($34)
Significantly Below Fair Value: STNE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STNE is unprofitable, so we can't compare its PE Ratio to the US IT industry average.
PE vs Market: STNE is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate STNE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: STNE is good value based on its PB Ratio (1.7x) compared to the US IT industry average (4.3x).
Future Growth
How is StoneCo forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
101.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STNE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: STNE is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: STNE's is expected to become profitable in the next 3 years.
Revenue vs Market: STNE's revenue (32.6% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: STNE's revenue (32.6% 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 (11.8%).
Past Performance
How has StoneCo performed over the past 5 years?
40.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STNE is currently unprofitable.
Growing Profit Margin: STNE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: STNE is unprofitable, but has reduced losses over the past 5 years at a rate of 40.5% per year.
Accelerating Growth: Unable to compare STNE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: STNE is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (35.8%).
Return on Equity
High ROE: STNE has a negative Return on Equity (-1.86%), as it is currently unprofitable.
Financial Health
How is StoneCo's financial position?
Financial Position Analysis
Short Term Liabilities: STNE's short term assets (R$27.4B) exceed its short term liabilities (R$19.8B).
Long Term Liabilities: STNE's short term assets (R$27.4B) exceed its long term liabilities (R$5.4B).
Debt to Equity History and Analysis
Debt Level: STNE has more cash than its total debt.
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 well covered by operating cash flow (47.6%).
Interest Coverage: STNE's interest payments on its debt are not well covered by EBIT (1.2x coverage).
Balance Sheet
Dividend
What is StoneCo current dividend yield, its reliability and sustainability?
0.32%
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?
4.0yrs
Average management tenure
CEO
Thiago dos Piau (31 yo)
5yrs
Tenure
Mr. Thiago dos Santos Piau serves as Director at Banco Inter S.A. since August 2021. He serves as the Chief Executive Officer of Linx S.A. since July 01, 2021. He has been the Vice Chairman of the Board of...
Leadership Team
Experienced Management: STNE's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: STNE's board of directors are considered experienced (4 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
StoneCo Ltd.'s 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
- Implied Market Cap: US$4.467b
- Shares outstanding: 308.93m
- Website: https://www.stone.co
Number of Employees
Location
- StoneCo Ltd.
- Harbour Place
- 4th Floor
- George Town
- Grand Cayman
- KY1-1002
- Cayman Islands
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:57 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.