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Upturn AI SWOT - About
STNE 
StoneCo Ltd (STNE)
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Upturn Advisory Summary
10/23/2025: STNE (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Number of Analysts
14 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $19.26
1 Year Target Price $19.26
| 10 | Strong Buy |
| 3 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 19.98% | Avg. Invested days 34 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/23/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.86B USD | Price to earnings Ratio - | 1Y Target Price 19.26 |
Price to earnings Ratio - | 1Y Target Price 19.26 | ||
Volume (30-day avg) 14 | Beta 1.99 | 52 Weeks Range 7.72 - 19.95 | Updated Date 10/23/2025 |
52 Weeks Range 7.72 - 19.95 | Updated Date 10/23/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.71 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -9.21% | Operating Margin (TTM) 47.74% |
Management Effectiveness
Return on Assets (TTM) 7.24% | Return on Equity (TTM) -9.37% |
Valuation
Trailing PE - | Forward PE 10.75 | Enterprise Value 6164602104 | Price to Sales(TTM) 0.35 |
Enterprise Value 6164602104 | Price to Sales(TTM) 0.35 | ||
Enterprise Value to Revenue 2.39 | Enterprise Value to EBITDA 19.5 | Shares Outstanding 250599325 | Shares Floating 246034179 |
Shares Outstanding 250599325 | Shares Floating 246034179 | ||
Percent Insiders 1.77 | Percent Institutions 79.47 |
Upturn AI SWOT
StoneCo Ltd
Company Overview
History and Background
StoneCo Ltd. was founded in 2012 in Brazil, initially focusing on payment processing solutions for merchants. It quickly grew by offering technology and financial solutions and expanded its services, leading to its IPO on the Nasdaq in 2018.
Core Business Areas
- Financial Technology Solutions: Provides end-to-end payment solutions, including acquiring, digital banking, and credit solutions, primarily to micro, small, and medium-sized businesses (MSMBs) and integrated partners in Brazil.
- Software: Offers software solutions that help merchants manage their businesses, including point-of-sale (POS) systems, enterprise resource planning (ERP), and customer relationship management (CRM) tools.
Leadership and Structure
Thiago Piau is the CEO. The organizational structure includes technology, sales, finance, operations, and legal departments, organized to support their two main business segments.
Top Products and Market Share
Key Offerings
- Payment Acquiring: StoneCo's core business, offering payment processing through POS terminals and online platforms. Market share in Brazil fluctuates but is estimated around 10-15%, competing with Cielo (CIOXY) and PagSeguro (PAGS). Revenue is significant, driving a substantial portion of StoneCo's total revenue, however StoneCo's fintech division has seen revenue declines.
- Digital Banking: Digital banking services for merchants including current accounts, payment tools and banking-as-a-service (BaaS) functionality. Usage is growing, but specific market share data is less readily available. Competitors include NuBank and other Brazilian digital banks.
- Credit Solutions: Offer credit solutions in Brazil. Credito (StoneCo's credit division) is focused on improving the financial health and offering banking-as-a-service (BaaS). Market share is not readily available. Competitors include NuBank and other Brazilian digital banks and credit providers.
Market Dynamics
Industry Overview
The Brazilian fintech market is experiencing rapid growth, driven by increased internet and smartphone penetration, a large unbanked population, and government initiatives promoting financial inclusion. The market is highly competitive with the entrance of international players.
Positioning
StoneCo is positioned as a technology-driven financial solutions provider for MSMBs in Brazil. Its competitive advantage lies in its integrated platform, strong distribution network, and focus on customer service.
Total Addressable Market (TAM)
The total addressable market (TAM) for fintech in Brazil is estimated to be several hundred billion dollars, encompassing payments, lending, and other financial services. StoneCo is focusing on the MSMB segment, with an estimated TAM of $50B. StoneCo is positioned to capture a significant portion of this market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in Brazil
- Extensive distribution network
- Integrated platform of financial and software solutions
- Focus on MSMBs
- Strong technological capabilities
Weaknesses
- Concentration in the Brazilian market
- Exposure to macroeconomic volatility in Brazil
- Credit risk in lending operations
- Regulatory uncertainty
- Past credit losses related to the Credito arm of the company.
Opportunities
- Expansion into new financial services
- Geographic expansion within Latin America
- Partnerships with larger enterprises
- Increased adoption of digital payments
- Growth in e-commerce
Threats
- Intense competition from established players and new entrants
- Changes in regulations
- Economic downturn in Brazil
- Cybersecurity risks
- Fluctuations in interest rates
Competitors and Market Share
Key Competitors
- CIELO (CIOXY)
- PAGSEGURO (PAGS)
- ADYEN (ADYE.AS)
Competitive Landscape
StoneCo competes with established payment processors and new fintech entrants. Its competitive advantage lies in its integrated platform, strong distribution network, and focus on customer service. They also struggle with credit losses with their credit arm called Credito
Major Acquisitions
Linx
- Year: 2020
- Acquisition Price (USD millions): 1100
- Strategic Rationale: To expand its software solutions offerings and integrate payment processing capabilities with Linx's retail management systems.
Growth Trajectory and Initiatives
Historical Growth: StoneCo has experienced rapid revenue growth in its early years driven by the adoption of digital payments in Brazil. Growth has been impacted by changing market conditions and macroeconomic headwinds.
Future Projections: Analyst estimates project continued growth in revenue and earnings, driven by expansion into new services and geographic areas.
Recent Initiatives: Recent initiatives include investments in technology infrastructure, expansion of its digital banking platform, and partnerships with leading retailers.
Summary
StoneCo is a technology-driven financial solutions provider focused on MSMBs in Brazil. It has a strong integrated platform with potential for growth by expanding into new financial services and geographic areas. StoneCo faces strong competition and economic volatility within Brazil. The company also need to fix the credit arm to improve the health of the company.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Research Reports
- Analyst Estimates
Disclaimers:
This analysis is based on available data and estimates, which may be subject to change. Investment decisions should be based on thorough due diligence.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About StoneCo Ltd
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2018-10-25 | CEO - | ||
Sector Technology | Industry Software - Infrastructure | Full time employees - | Website https://www.stoneco.com.br |
Full time employees - | Website https://www.stoneco.com.br | ||
StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. The company offers financial services, including payment, prepayment, digital banking, and credit solutions. It distributes its solutions, principally through proprietary and franchised Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2012 and is based in George Town, the Cayman Islands.
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