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Upturn AI Summary - About
StoneCo Ltd(STNE)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for STNE
09/25/2026: STNE (1-star) is currently NOT-A-BUY. Pass it for now.
StoneCo is a Brazilian fintech company that provides a comprehensive platform for payments, banking, and business software, primarily targeting small and medium-sized businesses. Its core strength lies in its strong customer service model and growing ability to bundle payment services with essential business software. The company's primary investment story centers on capturing value within the underbanked Brazilian merchant market through this integrated ecosystem. However, investors must monitor risks related to credit portfolio performance, intense competition from digital banking giants, and sensitivity to the Brazilian macroeconomic environment. StoneCo may best suit investors looking for exposure to emerging market fintech growth who are comfortable with the volatility inherent in this sector.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | While the market is large, the growth narrative is now focused on operational efficiency rather than pure top-line expansion. |
| Momentum investor | Weak fit | The stock has experienced significant volatility and lacks a consistent upward momentum trend. |
| Value investor | Mixed fit | The company may appear attractively valued relative to historical highs, but earnings quality remains sensitive to credit cycles. |
| Dividend investor | Weak fit | StoneCo does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | Exposure to Brazilian emerging market risks and credit portfolio volatility makes this an unsuitable choice for low-risk investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is subject to significant fluctuations based on Brazilian macro data and interest rate sensitivity. |
| Valuation risk | Medium | Current valuation depends on future profitability targets being met consistently. |
| Competition risk (Fintech / Banking) | High | Intense competition from Nubank and other players pressures margins. |
| Business quality | Medium | The company has a strong merchant franchise but is still refining its credit risk management. |
| Dividend income | Low / none | There is no income component to the total return profile. |
| Execution risk | Medium / high | Successful integration of various software acquisitions is critical to long-term success. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit 10.54% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 09/25/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.14B USD | Price to earnings Ratio 3.54 | 1Y Target Price 14.41 |
Price to earnings Ratio 3.54 | 1Y Target Price 14.41 | ||
Volume (30-day avg) 6.1M shares | Beta 1.62 | 52 Weeks Range 9.05 - 16.48 | Updated Date 09/26/2026 |
52 Weeks Range 9.05 - 16.48 | Updated Date 09/26/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.63 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Financial Services (Payments) | Transaction fees and merchant acquiring services. | The bread and butter of the company; it earns a small fee every time a merchant processes a card transaction. |
| Banking & Credit | Interest income from loans and account fees. | Lending money to merchants is profitable but carries the risk that some merchants may not pay back their loans. |
| Software | Subscription revenue from retail management and ERP tools. | Provides recurring, predictable revenue that helps tie merchants closer to StoneCo's ecosystem. |
Valuation
Trailing PE 3.54 | Forward PE 10.75 | Enterprise Value 3.46B | Price to Sales(TTM) 0.16 |
Enterprise Value 3.46B | Price to Sales(TTM) 0.16 | ||
Enterprise Value to Revenue 1.3 | Enterprise Value to EBITDA 3.05 | Shares Outstanding 216.54M | Shares Floating 203.32M |
Shares Outstanding 216.54M | Shares Floating 203.32M | ||
Percent Insiders 3.28 | Percent Institutions 80.78 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About StoneCo Ltd
Exchange NASDAQ | Headquarters - | ||
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 provides financial services, including payment, prepayment, digital banking, and credit solutions. It offers payment solutions of electronic payments and alternative payment methods, such as payment slips and Pix transactions; digital product to help merchants improve their consumers' experience, which include split-payment processing, multi-payment processing, and recurring payments for subscriptions; and tap on phone solution. In addition, the company provides prepayment; digital banking; and credit solution. The company serves online, offline, and omni-channel sales clients under Stone, tonstone, and paggar.me. StoneCo Ltd. was founded in 2012 and is based in George Town, the Cayman Islands.
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