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StoneCo

Nasdaq:STNE
Snowflake Description

Exceptional growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STNE
Nasdaq
$7B
Market Cap
  1. Home
  2. US
  3. Software
Company description

StoneCo Ltd. provides financial technology solutions that empower merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. The last earnings update was 34 days ago. More info.


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  • StoneCo has significant price volatility in the past 3 months.
STNE Share Price and Events
7 Day Returns
-24.8%
NasdaqGS:STNE
-0.8%
US IT
-0.3%
US Market
1 Year Returns
-
NasdaqGS:STNE
22.9%
US IT
7%
US Market
STNE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
StoneCo (STNE) -24.8% -36.6% 19.5% - - -
US IT -0.8% 2.4% 16% 22.9% 79.8% 108%
US Market -0.3% 2.2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • No trading data on STNE.
  • No trading data on STNE.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is StoneCo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of StoneCo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for StoneCo.

NasdaqGS:STNE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STNE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.061 (1 + (1- 34%) (9.85%))
1.087
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.087 * 5.96%)
9.21%

Discounted Cash Flow Calculation for NasdaqGS:STNE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for StoneCo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:STNE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (BRL, Millions) Source Present Value
Discounted (@ 9.21%)
2019 904.00 Analyst x1 827.77
2020 1,598.00 Analyst x1 1,339.87
2021 2,230.35 Est @ 39.57% 1,712.39
2022 2,866.43 Est @ 28.52% 2,015.18
2023 3,462.14 Est @ 20.78% 2,228.75
2024 3,994.16 Est @ 15.37% 2,354.43
2025 4,456.50 Est @ 11.58% 2,405.46
2026 4,854.11 Est @ 8.92% 2,399.15
2027 5,197.02 Est @ 7.06% 2,352.04
2028 5,496.58 Est @ 5.76% 2,277.86
Present value of next 10 years cash flows R$19,912.92
NasdaqGS:STNE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= R$5,496.58 × (1 + 2.73%) ÷ (9.21% – 2.73%)
R$87,159.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= R$87,159.25 ÷ (1 + 9.21%)10
R$36,120.00
NasdaqGS:STNE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= R$19,912.92 + R$36,120.00
R$56,032.93
Equity Value per Share
(BRL)
= Total value / Shares Outstanding
= R$56,032.93 / 277.40
R$202
NasdaqGS:STNE Discount to Share Price
Calculation Result
Exchange Rate BRL/USD
(Reporting currency to currency of NasdaqGS:STNE)
0.255
Value per Share
(USD)
= Value per Share in BRL x Exchange Rate (BRL/USD)
= R$202 x 0.255
$51.55
Value per share (USD) From above. $51.55
Current discount Discount to share price of $26.51
= -1 x ($26.51 - $51.55) / $51.55
48.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price StoneCo is available for.
Intrinsic value
49%
Share price is $26.51 vs Future cash flow value of $51.55
Current Discount Checks
For StoneCo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • StoneCo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • StoneCo's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for StoneCo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are StoneCo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:STNE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in BRL R$1.30
NasdaqGS:STNE Share Price ** NasdaqGS (2019-04-18) in USD $26.51
NasdaqGS:STNE Share Price converted to BRL reporting currency Exchange rate (USD/ BRL) 3.918 R$103.87
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 31.72x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of StoneCo.

NasdaqGS:STNE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STNE Share Price ÷ EPS (both in BRL)

= 103.87 ÷ 1.30

80.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • StoneCo is overvalued based on earnings compared to the US IT industry average.
  • StoneCo is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does StoneCo's expected growth come at a high price?
Raw Data
NasdaqGS:STNE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 80.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
33.4%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.64x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:STNE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 80.15x ÷ 33.4%

2.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • StoneCo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on StoneCo's assets?
Raw Data
NasdaqGS:STNE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in BRL R$18.38
NasdaqGS:STNE Share Price * NasdaqGS (2019-04-18) in USD $26.51
NasdaqGS:STNE Share Price converted to BRL reporting currency Exchange rate (USD/ BRL) 3.918 R$103.87
United States of America IT Industry PB Ratio Median Figure of 125 Publicly-Listed IT Companies 4.35x
United States of America Market PB Ratio Median Figure of 5,182 Publicly-Listed Companies 1.91x
NasdaqGS:STNE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STNE Share Price ÷ Book Value per Share (both in BRL)

= 103.87 ÷ 18.38

5.65x

* Primary Listing of StoneCo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • StoneCo is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess StoneCo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. StoneCo has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is StoneCo expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is StoneCo expected to grow at an attractive rate?
  • StoneCo's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • StoneCo's earnings growth is expected to exceed the United States of America market average.
  • StoneCo's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:STNE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STNE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 33.4%
NasdaqGS:STNE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 36%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:STNE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in BRL Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STNE Future Estimates Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 5,326 1,485 1,982 2
2021-12-31 4,736 1,181 1,512 6
2020-12-31 4,075 653 1,182 8
2019-12-31 2,538 1,072 3
NasdaqGS:STNE Past Financials Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income *
2018-12-31 728 -2,416 301
2018-09-30 597 -797 159
2018-06-30 475 -1,555 55
2018-03-31 402 -1,419 -26
2017-12-31 329 -1,284 -107
2016-12-31 176 -493 -117

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • StoneCo's earnings are expected to grow significantly at over 20% yearly.
  • StoneCo's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STNE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from StoneCo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STNE Future Estimates Data
Date (Data in BRL Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 6.99 6.99 6.99 1.00
2021-12-31 5.40 5.93 4.85 3.00
2020-12-31 4.19 4.53 3.72 4.00
2019-12-31 2.73 2.73 2.73 1.00
NasdaqGS:STNE Past Financials Data
Date (Data in BRL Millions) EPS *
2018-12-31 1.30
2018-09-30 0.72
2018-06-30 0.24
2018-03-31 -0.12
2017-12-31 -0.49
2016-12-31 -0.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • StoneCo is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess StoneCo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
StoneCo has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has StoneCo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare StoneCo's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unable to establish if StoneCo's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
  • Unable to compare StoneCo's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.
  • StoneCo has become profitable in the last year making it difficult to compare the US IT industry average.
Earnings and Revenue History
StoneCo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from StoneCo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STNE Past Revenue, Cash Flow and Net Income Data
Date (Data in BRL Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 728.28 301.36 443.03
2018-09-30 596.90 159.32 546.18
2018-06-30 475.49 55.01 416.25
2018-03-31 402.33 -25.84 410.90
2017-12-31 329.17 -106.69 266.62
2016-12-31 175.81 -116.89 155.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • StoneCo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • It is difficult to establish if StoneCo has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if StoneCo improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess StoneCo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
StoneCo has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is StoneCo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up StoneCo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • StoneCo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • StoneCo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of StoneCo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from StoneCo Company Filings, last reported 3 months ago.

NasdaqGS:STNE Past Debt and Equity Data
Date (Data in BRL Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,092.99 2,837.02 3,068.52
2018-09-30 704.11 2,117.54 315.66
2018-06-30 733.43 2,077.08 351.92
2018-03-31 482.58 2,081.90 843.71
2017-12-31 482.58 2,081.90 843.71
2016-12-31 587.24 40.83 236.99
  • StoneCo's level of debt (55.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if StoneCo's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on StoneCo's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess StoneCo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. StoneCo has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from StoneCo dividends. Estimated to be 0.77% next year.
If you bought $2,000 of StoneCo shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate StoneCo's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate StoneCo's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:STNE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STNE Future Dividends Estimate Data
Date (Data in R$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 4.02 2.00
2021-12-31 1.41 6.00
2020-12-31 0.01 6.00
2019-12-31 0.03 7.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as StoneCo has not reported any payouts.
  • Unable to verify if StoneCo's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of StoneCo's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as StoneCo has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of StoneCo's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess StoneCo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can StoneCo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. StoneCo has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of StoneCo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Thiago dos Piau
AGE 29
TENURE AS CEO 2.3 years
CEO Bio

Mr. Thiago dos Santos Piau has been Chief Executive Officer of StoneCo Ltd. since 2017. Prior to 2017, Mr. Piau served as Chief Operations Officer of StoneCo Ltd. and also served as its Chief Financial Officer since 2016. He is a partner at ACP Investment Ltd. – Arpex Capital, where he was responsible for the definition of the business strategy, investment structuring, merger and acquisition transactions and oversees the management of portfolio companies. In 2011, he founded Paggtaxi, a company that facilitated the payment of taxi rides through a mobile app and credit card machines, where he served as a partner until 2013. Mr. Piau conducted studies in mechanical engineering at Universidade Federal do Rio de Janeiro from 2007 to 2011 and participated in the Key Executive Program at Harvard Business School in 2013. He also participated in the Owner President Manager Program at Harvard Business School in 2018.

CEO Compensation
  • Insufficient data for Thiago dos to compare compensation growth.
  • Insufficient data for Thiago dos to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the StoneCo management team in years:

1.3
Average Tenure
35
Average Age
  • The average tenure for the StoneCo management team is less than 2 years, this suggests a new team.
Management Team

Thiago dos Piau

TITLE
Chief Executive Officer
AGE
29
TENURE
2.3 yrs

Augusto Barbosa Lins

TITLE
President
AGE
55
TENURE
1.3 yrs

Marcelo Baldin

TITLE
Vice President of Finance
AGE
35
TENURE
1.3 yrs

Felipe Bourrus

TITLE
Chief Technology Officer
AGE
34
TENURE
1.3 yrs

Rafael Pereira

TITLE
Investor Relations Executive Officer
AGE
32
TENURE
1.3 yrs

Vinícius do Carrasco

TITLE
Chief Economist & Regulatory Affairs Executive Officer and Member of Advisory Board
AGE
41
TENURE
1.3 yrs

Lia de Matos

TITLE
Chief Strategy Officer
AGE
41
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the StoneCo board of directors in years:

1.3
Average Tenure
52
Average Age
  • The average tenure for the StoneCo board of directors is less than 3 years, this suggests a new board.
Board of Directors

André Street

TITLE
Chairman & Member of Advisory Board
AGE
33

Eduardo Cunha Monnerat de Pontes

TITLE
Vice Chairman & Member of Advisory Board
AGE
39

Vinícius do Carrasco

TITLE
Chief Economist & Regulatory Affairs Executive Officer and Member of Advisory Board
AGE
41

Ali Mazanderani

TITLE
Director & Member of Advisory Board
AGE
36
TENURE
1.3 yrs

Roberto Moses Motta

TITLE
Director
AGE
60
TENURE
1.3 yrs

Tom Patterson

TITLE
Director
AGE
52
TENURE
1.3 yrs

Arminio Fraga Neto

TITLE
Member of Advisory Board
AGE
61

Carl Pascarella

TITLE
Member of Advisory Board
AGE
75

José Scheinkman

TITLE
Member of Advisory Board
AGE
70

Jonas de Miranda Gomes

TITLE
Member of Advisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Nov 18 Buy Madrone Capital Partners Company 29. Oct 18 29. Oct 18 2,750,000 $24.00 $66,000,000
X
Management checks
We assess StoneCo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. StoneCo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Investors Should Know About StoneCo Ltd.'s (NASDAQ:STNE) Financial Strength

This article will examine STNE’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself. … Does STNE Produce Much Cash Relative To Its Debt?

Simply Wall St -

Can We See Significant Institutional Ownership On The StoneCo Ltd. (NASDAQ:STNE) Share Register?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Normally institutions would own a significant portion of a company this size. … institutions are noticeable on the share registry.

Simply Wall St -

Should You Be Worried About StoneCo Ltd's (NASDAQ:STNE) 8.0% Return On Equity?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.080. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

StoneCo Ltd. provides financial technology solutions that empower 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 of June 30, 2018, the company served approximately 200,000 clients, which included digital, and brick-and-mortar merchants, primarily small-and-medium-sized businesses; and 95 integrated partners, such as global payment service providers, digital marketplaces, and integrated software vendors. The company was founded in 2012 and is headquartered in São Paulo, Brazil.

Details
Name: StoneCo Ltd.
STNE
Exchange: NasdaqGS
Founded: 2012
$7,353,775,435
277,396,282
Website: http://www.stone.co
Address: StoneCo Ltd.
R. Fidêncio Ramos, 308,
10th floor,
São Paulo,
São Paulo, 04551-010,
Brazil
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS STNE Class A Common Shares Nasdaq Global Select US USD 25. Oct 2018
DB 0Q0 Class A Common Shares Deutsche Boerse AG DE EUR 25. Oct 2018
Number of employees
Current staff
Staff numbers
3,171
StoneCo employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 00:55
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.