Lumida
/STNE
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StoneCo Ltd

StoneCo Ltd

STNE
$11.15USD↓-0.45%-0.05 today

MARKET CAP

2.7B

P/E (TTM)

1.1x

FWD P/E

1.0x

DAY RANGE

$11 – $11

52W RANGE

$9
$20

AI Summary

Stalk
StalkMedium

In early Stage 1 consolidation following a Post-Capitulation pattern signaling selling exhaustion, the medium-term bias is Bullish while short-term timing remains Neutral amid tight range-bound action. Under a Compounders strategy, patient entry on a pullback into the rising 9- and 21-EMA zone is recommended.

  • ↑Revenue up 6% YoY to R$3.6B, driven by credit services
  • ↑Adjusted EPS grows 15% to R$2.19 in latest quarter
  • ↓NPL ratio increased to 7% from 5.2%, signaling credit risk
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

StoneCo Ltd. (NASDAQ: STNE) is a leading financial technology company based in Brazil, primarily focusing on providing payment processing solutions, banking services, and credit offerings tailored for micro, small, and medium-sized businesses (MSMBs). Positioned within the burgeoning fintech sector, StoneCo leverages technology to enhance its service offerings and optimize operational efficiencies, aiming to capture a significant share of Brazil's diverse financial landscape.

Bull says

  • ↑Revenue up 6% YoY to R$3.6B, driven by credit services
  • ↑Adjusted EPS grows 15% to R$2.19 in latest quarter
  • ↑R$3.6B distributed to shareholders, yielding 27% in 2026
  • ↑Credit portfolio expands 14% sequentially to R$3.2B
  • ↑Client base up 13% YoY to 4.7M; retention efforts ramping
  • ↑Positive momentum indicators plus high earnings and dividend yields

Bear says

  • ↓NPL ratio increased to 7% from 5.2%, signaling credit risk
  • ↓Analysts cut 2026/27 EPS forecasts by 9%/13% on rising credit losses
  • ↓BofA downgraded to Neutral with a $13 target amid macro pressures
  • ↓Negative revisions and weak balance-sheet scores dampen analyst confidence
  • ↓Low interest-rate sensitivity and tepid 13F/short-interest sentiment pose risks
  • ↓Funding cost pressures expected to keep cost of risk elevated

Investment themes with STNE

FinTech Lending↓ -0.02%

Financial technology companies providing loans

SOFI · COIN · FIS
Payments↑ +0.79%

Digital and traditional payment processing solutions

XYZ · MA · V
Brazil↑ +2.77%

Commodity-rich emerging market with growing consumer potential

VALE3.SA · NU · ITUB4.SA

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 06-15-2026neutral

Transcript signals

Bull points

  • So part of this specialist distribution is focused around credit. So this really has enabled us to make the right types of offer for those larger S&B clients.
  • 14% CAGR until 2027. So the expectation was always to keep a healthier pricing policy, focus on profitability and not on growth at any cost.
  • The vast majority of the base was already repriced. Last earnings call, I think the message that we provided was that in our stone brands, pretty much all the repricing wave was done. In the second queue, we did the repricing in our tone brand as well. Results were also really good when we look at the churn levels versus the price increases that we did.

Bear points

  • it seems like you're losing some market share. It seems like you're growing slightly below the industry. You said that churn has increased.
  • it's natural that on a percentage basis, the growth rates over the long term will be somewhat smaller, right?
  • transactional revenue has decreased on both quarterly and yearly comparisons
Read full transcript analysis ›