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STNE

BuyUnloved QualityFLAG

StoneCo Ltd. · Technology · Cayman Islands · $2.2B · Avg Vol: $55M/d

65
StockRank
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Q
55
V
81
M
24
P/E (TTM)
3.8x
ROE
34.0%
D/E
1.9x
Dividend %
25.0%
AI CONVICTION THESIS

StoneCo screens as the cheapest name in this batch (V97) and remains a scaled Brazilian merchant acquirer with a growing banking arm, but the quality score is weak (Q55), funding costs track a high Brazilian policy rate, and the company has a documented history of severe credit losses when it previously expanded into merchant lending. That credit history is specific and directly relevant.

COMPANY DESCRIPTION

StoneCo Ltd. is a leading provider of financial technology solutions in Brazil, offering end-to-end cloud-based platforms for electronic payments, integrated software, and credit products to small and medium-sized businesses. The company's comprehensive ecosystem, robust proprietary technology, and strong focus on SMBs create a significant competitive moat in the rapidly digitizing Brazilian payments and financial services market. Its extensive distribution network and localized support further solidify its market position.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue1.8B2.0B2.3B2.6B14.1%2.7B2.8B2.9B5.6%
EPS-0.331.00-1.032.0643.5%2.652.162.5912.3%
Shares312.6M308.9M286.0M248.9M-20.4%216.5M
Debt1.1B1.1B2.5B3.4B46.9%3.3B
Equity2.5B2.9B2.3B2.2B-5.2%
Op CF330.2M323.2M-710.2M132.7M-26.2%922.9M
Inv CF-367.0M-165.8M311.3M-345.1M
Fin CF-551.1M-29.2M988.6M182.5M
Loading 1Y...
PRICE (1Y)-9.6%
9.129.7010.2810.8511.43Jul 29Aug 19Sep 9
SMA 50SMA 200

Close
$9.91
RSI (14)
58.7
52W High
$16.48
From 52W High
0.6%

SCORE BREAKDOWN

Quality
55
ROIC
25.7%91.6
ROE
34.0%93.0
GP/Assets
15.8%38.1
Op. Margin
39.6%96.9
FCF/Assets
3.6%53.9
Piotroski
538.9
Int. Cover
2.1x28.8
D/E Ratio
1.88x4.7
Current Ratio
1.26x21.2
Value
81
P/E (TTM)
3.8x99.4
EV/EBITDA
8.4x79.4
P/FCF
5.2x93.8
P/B
5.2x29.1
P/S
0.9x81.5
Div Yield
25.0%100.0
Momentum
24
52W High %
60%40.2
RS 6M
-28%27.4
SMA 50/200
0.90x29.1
EPS Rev 4W
-1.4%12.8
EPS Rev 12W
-6.2%11.4
EPS Improve
-11%13.8
Q Growth
-26%16.3

FUNDAMENTALS

Market Cap
$2.2B
P/E (Forward)
4.3x
Gross Margin
71.6%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of STNE are excluded.

TickerCompanyMkt CapStockRankSignal
STNEStoneCo Ltd.(you)$2.2B65Buy
BLSHBullish$5.0B9Strong Sell
4966.TWOParade Technologies, Ltd.$1.4B77Buy
6672.TWVentec International Group Co.,Ltd.$747M69Buy
4991.TWOGCS Holdings, Inc.$2.0B35Hold
6415.TWSilergy Corp.$5.6B41Hold
6456.TWGeneral Interface Solution (GIS) Holding Limited$776M40Hold
4958.TWZhen Ding Technology Holding Limited$16.8B72Buy
FNFabrinet$14.8B54Hold
6525.TWGEM Services, Inc.$590M93Strong Buy

Peer medians: ROE 10.5% · P/E 34.0x · Gross margin 27.1%

StoneCo Ltd. (STNE): Stock Score Summary

StoneCo Ltd. (STNE) has a MoatMap StockRank of 65/100 based on Quality (55/100), Value (81/100), and Momentum (24/100) factor scores. The current signal is BUY. StoneCo screens as the cheapest name in this batch (V97) and remains a scaled Brazilian merchant acquirer with a growing banking arm, but the quality score is weak (Q55), funding costs track a high Brazilian policy rate, and the company has a documented history of severe credit losses when it previously expanded into merchant lending. That credit history is specific and directly relevant.

StoneCo Ltd. is a leading provider of financial technology solutions in Brazil, offering end-to-end cloud-based platforms for electronic payments, integrated software, and credit products to small and medium-sized businesses. The company's comprehensive ecosystem, robust proprietary technology, and strong focus on SMBs create a significant competitive moat in the rapidly digitizing Brazilian payments and financial services market. Its extensive distribution network and localized support further solidify its market position.

Key Financial Metrics

Price$9.91
Market Cap$2.2B
P/E (TTM)3.82
P/E (Forward)4.28
Price/Book5.21
Return on Equity34.0%
Return on Invested Capital25.7%
Debt/Equity1.88x
Gross Margin71.6%
Operating Margin39.6%
Revenue Growth1.6%
Dividend Yield25.0%
Free Cash Flow$430M

StoneCo Ltd. operates in the Software - Infrastructure industry, part of the Technology sector (Cayman Islands).

Frequently Asked Questions

What is StoneCo Ltd.’s (STNE) StockRank?
MoatMap’s StockRank for StoneCo Ltd. (STNE) is 65/100, with a Buy signal. It is a composite of Quality (55), Value (81), and Momentum (24) factor ranks across MoatMap’s universe of 25,000+ stocks.
Does StoneCo Ltd. have an economic moat?
StoneCo Ltd. (STNE) has a Quality factor score of 55/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is StoneCo Ltd. a buy, hold, or sell?
MoatMap’s current signal for StoneCo Ltd. (STNE) is Buy, based on a StockRank of 65/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is StoneCo Ltd. in?
StoneCo Ltd. (STNE) operates in the Technology sector, specifically the Software - Infrastructure industry (Cayman Islands).