StoneCo
Market Cap
US$11.1b
Last Updated
2020/07/05 23:49 UTC
Data Sources
Company Financials +
Executive Summary
StoneCo Ltd. provides financial technology solutions to clients and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil.
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with acceptable track record.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.7%
STNE
4.3%
US IT
4.0%
US Market
1 Year Return
36.7%
STNE
15.3%
US IT
5.0%
US Market
Return vs Industry: STNE exceeded the US IT industry which returned 15.3% over the past year.
Return vs Market: STNE exceeded the US Market which returned 4.9% over the past year.
Shareholder returns
| STNE | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.7% | 4.3% | 4.0% |
| 30 Day | 2.2% | 1.8% | -1.1% |
| 90 Day | 80.4% | 28.8% | 21.1% |
| 1 Year | 36.7%36.7% | 16.4%15.3% | 7.2%5.0% |
| 3 Year | n/a | 100.9%92.7% | 36.0%27.1% |
| 5 Year | n/a | 148.8%127.8% | 65.3%46.9% |
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
4 days ago | Simply Wall St
Is StoneCo Ltd.'s (NASDAQ:STNE) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?1 month ago | Simply Wall St
What Is StoneCo's (NASDAQ:STNE) P/E Ratio After Its Share Price Rocketed?1 month ago | Simply Wall St
Need To Know: Analysts Are Much More Bullish On StoneCo Ltd. (NASDAQ:STNE) RevenuesValuation
Is StoneCo undervalued compared to its fair value and its price relative to the market?
29.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STNE ($40.11) is trading below our estimate of fair value ($57.22)
Significantly Below Fair Value: STNE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STNE is poor value based on its PE Ratio (75.5x) compared to the IT industry average (28.5x).
PE vs Market: STNE is poor value based on its PE Ratio (75.5x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: STNE is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: STNE is overvalued based on its PB Ratio (9.5x) compared to the US IT industry average (3.5x).
Next Steps
Future Growth
How is StoneCo forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
29.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STNE's forecast earnings growth (29% per year) is above the savings rate (2.2%).
Earnings vs Market: STNE's earnings (29% per year) are forecast to grow faster than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STNE's revenue (27.5% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: STNE's revenue (27.5% 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 high in 3 years time (20.2%)
Next Steps
Past Performance
How has StoneCo performed over the past 5 years?
94.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STNE has a high level of non-cash earnings.
Growing Profit Margin: STNE's current net profit margins (66.4%) are higher than last year (54.3%).
Past Earnings Growth Analysis
Earnings Trend: STNE's earnings have grown significantly by 94.5% per year over the past 5 years.
Accelerating Growth: STNE's earnings growth over the past year (72.1%) is below its 5-year average (94.5% per year).
Earnings vs Industry: STNE earnings growth over the past year (72.1%) exceeded the IT industry 14.5%.
Return on Equity
High ROE: STNE's Return on Equity (12.4%) is considered low.
Next Steps
Financial Health
How is StoneCo's financial position?
Financial Position Analysis
Short Term Liabilities: STNE's short term assets (R$17.3B) exceed its short term liabilities (R$10.2B).
Long Term Liabilities: STNE's short term assets (R$17.3B) exceed its long term liabilities (R$2.1B).
Debt to Equity History and Analysis
Debt Level: STNE's debt to equity ratio (96.8%) is considered high.
Reducing Debt: Insufficient data to determine if STNE's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: STNE's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if STNE's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is StoneCo current dividend yield, its reliability and sustainability?
0.19%
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?
2.5yrs
Average management tenure
CEO
Thiago dos Piau (30yo)
3.5yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 3.5yrs | no data | no data | |
| President | 2.5yrs | no data | 0.63% R$69.7m | |
| Vice President of Finance | 2.5yrs | no data | no data | |
| Chief Technology Officer | 2.5yrs | no data | no data | |
| Investor Relations Executive Officer | 2.5yrs | no data | no data | |
| Chief Economist & Regulatory Affairs Executive Officer and Member of Advisory Board | no data | no data | no data | |
| Chief Strategy Officer | 4.5yrs | no data | 0.0036% R$396.7k |
2.5yrs
Average Tenure
37yo
Average Age
Experienced Management: STNE's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Economist & Regulatory Affairs Executive Officer and Member of Advisory Board | no data | no data | no data | |
| Director | 2.5yrs | no data | no data | |
| Independent Director | 2.5yrs | no data | no data | |
| Member of Advisory Board | no data | no data | 0.27% R$29.9m | |
| Chairman & Member of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no data | |
| Independent Director & Member of Advisory Board | 2.5yrs | no data | no data | |
| Vice Chairman & Member of Advisory Board | no data | no data | no data |
2.5yrs
Average Tenure
54yo
Average Age
Experienced Board: STNE's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: StoneCo Ltd.
- Ticker: STNE
- Exchange: NasdaqGS
- Founded: 2012
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$11.113b
- Shares outstanding: 277.07m
- Website: https://www.stone.co
Number of Employees
Location
- StoneCo Ltd.
- Harbour Place
- 4th Floor
- George Town
- Grand Cayman
- KY1-1002
- Cayman Islands
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STNE | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Shares | US | USD | Oct 2018 |
| 0Q0 | DB (Deutsche Boerse AG) | Yes | Class A Common Shares | DE | EUR | Oct 2018 |
Biography
StoneCo Ltd. provides financial technology solutions to clients 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, 2019, the company served approximately 495,100 clients primarily small-and-medium-sized businesses; and 116 integrated partners, such as global payment service providers, digital marketplaces, and integrated software vendors. The company was founded in 2012 and is headquartered in George Town, Cayman Islands.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:49 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.