StoneCo Ltd (STNE) Stock Analysis
Verdict: HOLD
Extreme valuation compression and insider buying provide a floor, but rising NPLs and high debt servicing costs stall the recovery story.
Investment score: 64/100
Analysis as of
Is StoneCo Ltd stock worth reviewing? The TradeMates thesis
A high-beta value play backed by insider buying and attractive FCF yield, offset by macroeconomic headwinds in Brazil.
7-factor investment score
- Valuation: 88/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 90/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
StoneCo Ltd opportunities and risks
What speaks for STNE
- Substantial peer valuation gap
What speaks against STNE
- Deteriorating credit quality (NPLs)
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| STNE | 3.9x | 1.2x | 6.1x | 67.7% | 30.9% | 18.3% |
| PAGS | 6.1x | 0.7x | 6.2x | 51.1% | 10.8% | 2.7% |
| Peer median | 6.1x | 0.7x | 6.2x | 51.1% | 10.8% | 2.7% |
Frequently asked questions about StoneCo Ltd (STNE)
Is STNE stock a good investment?
The TradeMates model rates StoneCo Ltd as HOLD with an investment score of 64/100. A high-beta value play backed by insider buying and attractive FCF yield, offset by macroeconomic headwinds in Brazil. This is algorithmic model output, not personal investment advice.
Is STNE stock a buy?
The TradeMates model verdict for STNE is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.