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Upturn AI SWOT - About
StoneCo Ltd (STNE)
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Upturn Advisory Summary
07/14/2025: STNE (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
14 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $16.59
1 Year Target Price $16.59
| 10 | Strong Buy |
| 3 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 22.82% | Avg. Invested days 33 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 07/14/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.20B USD | Price to earnings Ratio - | 1Y Target Price 16.59 |
Price to earnings Ratio - | 1Y Target Price 16.59 | ||
Volume (30-day avg) 14 | Beta 1.92 | 52 Weeks Range 7.72 - 16.68 | Updated Date 07/13/2025 |
52 Weeks Range 7.72 - 16.68 | Updated Date 07/13/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.79 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -10.35% | Operating Margin (TTM) 44.38% |
Management Effectiveness
Return on Assets (TTM) 7.13% | Return on Equity (TTM) -10.31% |
Valuation
Trailing PE - | Forward PE 10.73 | Enterprise Value 5194638982 | Price to Sales(TTM) 0.32 |
Enterprise Value 5194638982 | Price to Sales(TTM) 0.32 | ||
Enterprise Value to Revenue 2.17 | Enterprise Value to EBITDA 20.99 | Shares Outstanding 254616992 | Shares Floating 250052250 |
Shares Outstanding 254616992 | Shares Floating 250052250 | ||
Percent Insiders 1.77 | Percent Institutions 81.45 |
Upturn AI SWOT
StoneCo Ltd
Company Overview
History and Background
StoneCo Ltd. was founded in 2012 in Brazil as a financial technology solutions provider. It went public on the NASDAQ in 2018. The company aimed to disrupt the Brazilian payments industry by offering a more comprehensive and technology-driven service to merchants.
Core Business Areas
- Financial Services: StoneCo offers payment processing, digital banking solutions, credit, and other financial services to merchants and partners.
- Software: StoneCo provides software solutions to merchants, including POS systems, CRM, and other management tools.
- Banking as a Service (BaaS): StoneCo provides financial infrastructure and technology for other companies to embed financial services into their platforms.
Leadership and Structure
StoneCo is led by CEO Pedro Zualberti. The organizational structure includes functional departments focused on technology, sales, operations, and finance. The company operates with a decentralized structure, empowering regional teams to adapt to local market needs.
Top Products and Market Share
Key Offerings
- Payment Processing: StoneCo's core product, providing payment processing solutions for merchants through various channels (online, mobile, POS). Stone claims to have about 1.4 million active clients. Competitors include PagSeguro, Cielo, and GetNet.
- Digital Banking Accounts: Digital banking accounts and other related services, aiming at financial inclusion for merchants. Number of users unavailable. Competitors include Nubank and Banco Inter.
- Credit Solutions: Credit and lending solutions designed for small and medium-sized businesses. Revenue contribution not explicitly disclosed, but part of the financial services segment. Competitors include traditional banks and fintech lenders.
Market Dynamics
Industry Overview
The fintech industry in Brazil is rapidly growing, driven by increasing internet penetration, smartphone adoption, and demand for digital financial services. The market is becoming more competitive with the entry of new players and the expansion of existing ones.
Positioning
StoneCo is positioned as a leading fintech provider in Brazil, focused on serving small and medium-sized businesses. Its competitive advantages include its comprehensive product portfolio, technology-driven approach, and strong distribution network.
Total Addressable Market (TAM)
The TAM for financial services in Brazil is estimated to be in the hundreds of billions of dollars. StoneCo is well-positioned to capture a significant share of this market by expanding its product offerings and reaching new customers.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in Brazil
- Extensive distribution network
- Comprehensive product portfolio
- Technology-driven approach
- Experienced management team
Weaknesses
- Concentration in the Brazilian market
- Exposure to regulatory changes in Brazil
- Credit risk associated with lending activities
- Reliance on third-party payment networks
Opportunities
- Expansion into new markets
- Development of new products and services
- Strategic acquisitions to expand capabilities
- Increased adoption of digital payments
- Growth in the e-commerce sector
Threats
- Increased competition from other fintech companies
- Economic slowdown in Brazil
- Regulatory changes that impact the business
- Cybersecurity risks
- Fluctuations in interest rates and exchange rates
Competitors and Market Share
Key Competitors
- PAGS
- CIEL3.SA
- ADNT
Competitive Landscape
StoneCo competes with other fintech companies, traditional banks, and payment processors. StoneCou2019s advantages include its focus on small and medium-sized businesses, its comprehensive product portfolio, and its technology-driven approach. Disadvantages are increased credit risk and exposure to the Brazilian market.
Major Acquisitions
Linx
- Year: 2020
- Acquisition Price (USD millions): 1100
- Strategic Rationale: The acquisition of Linx, a software provider for retailers, was intended to create a comprehensive ecosystem of financial and software solutions for merchants. However, this acquisition was ultimately blocked by Brazilian regulators. The transaction was eventually cancelled.
Growth Trajectory and Initiatives
Historical Growth: StoneCo has experienced rapid growth in revenue and customer base in recent years. However, profitability has been affected by credit losses and macroeconomic challenges.
Future Projections: Analyst estimates project continued growth in revenue and customer base, driven by the expansion of digital payments and the launch of new products and services. Profitability is expected to improve as the company manages credit risk and benefits from economies of scale.
Recent Initiatives: Recent initiatives include expanding the credit solutions, investing in technology infrastructure, and expanding the digital banking platform.
Summary
StoneCo is a leading fintech company in Brazil with a comprehensive product portfolio and a strong distribution network. However, the company faces challenges related to credit risk, regulatory changes, and increased competition. Despite these challenges, StoneCo is well-positioned to benefit from the growth of the digital payments market in Brazil. The company's performance heavily relies on its ability to execute its strategy and manage its risks effectively. The economic environment in Brazil poses a constant threat to its long-term performance.
Peer Comparison
Sources and Disclaimers
Data Sources:
- StoneCo Ltd. Investor Relations
- Company filings
- Third-party market research reports
- Analyst reports
Disclaimers:
The data and analysis provided are based on available information and are subject to change. This is not financial advice. Please consult with a financial professional before making any investment decisions.
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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