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Upturn AI SWOT - About
StoneCo Ltd (STNE)
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Upturn Advisory Summary
06/17/2025: 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.
Analysis of Past Performance
Type Stock | Historic Profit 21.28% | Avg. Invested days 31 | 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 06/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.94B USD | Price to earnings Ratio - | 1Y Target Price 16.78 |
Price to earnings Ratio - | 1Y Target Price 16.78 | ||
Volume (30-day avg) 6502084 | Beta 1.92 | 52 Weeks Range 7.72 - 15.27 | Updated Date 06/22/2025 |
52 Weeks Range 7.72 - 15.27 | Updated Date 06/22/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.8 |
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 10.3 | Enterprise Value 4949541317 | Price to Sales(TTM) 0.3 |
Enterprise Value 4949541317 | Price to Sales(TTM) 0.3 | ||
Enterprise Value to Revenue 2.05 | Enterprise Value to EBITDA 19.85 | Shares Outstanding 254616992 | Shares Floating 250052250 |
Shares Outstanding 254616992 | Shares Floating 250052250 | ||
Percent Insiders 1.77 | Percent Institutions 82.72 |
Analyst Ratings
Rating 4.64 | Target Price 16.69 | Buy 3 | Strong Buy 10 |
Buy 3 | Strong Buy 10 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
StoneCo Ltd
Company Overview
History and Background
StoneCo Ltd. was founded in 2012 in Brazil. It has evolved from a payment solutions provider to a broad financial technology platform for merchants, focusing primarily on micro, small, and medium-sized businesses (MSMBs) in Brazil. It went public in 2018.
Core Business Areas
- Financial Services: Offers a wide range of financial solutions including payment processing, digital banking, credit, and insurance.
- Software Solutions: Provides software tools to help merchants manage their businesses, including CRM, ERP, and e-commerce solutions.
Leadership and Structure
The leadership team includes Thiago Piau (CEO). The company operates with a hierarchical structure with various departments focusing on specific business areas.
Top Products and Market Share
Key Offerings
- Payment Processing: Provides merchants with payment processing solutions, including point-of-sale (POS) systems, online payment gateways, and mobile payment apps. Market share is approximately 15-20% in Brazil. Competitors include PagSeguro, Cielo, and GetNet. Revenue generated from this product line is substantial making up a significant portion of StoneCo's earnings.
- Digital Banking: Offers digital banking services to merchants, including checking accounts, debit cards, and online banking platforms. The company has a growing user base, expanding its financial service ecosystem. Competitors include traditional banks and other fintech companies like Nubank and Banco Inter. Digital banking is showing increased revenue growth for StoneCo.
- Credit Solutions: Provides working capital loans and other credit products to merchants. The company leverages its payment processing data to assess credit risk and offer tailored financing solutions. Competitors include traditional banks and fintech lenders. Growth has been impacted by macroeconomic conditions.
Market Dynamics
Industry Overview
The financial technology industry in Brazil is rapidly growing, driven by increasing adoption of digital payments and the rise of e-commerce. The market is competitive, with both domestic and international players vying for market share.
Positioning
StoneCo is positioned as a comprehensive fintech platform for MSMBs in Brazil. Its competitive advantages include its strong brand recognition, extensive distribution network, and integrated product suite.
Total Addressable Market (TAM)
The Brazilian financial services market is estimated to be worth hundreds of billions of dollars. StoneCo is positioned to capture a significant portion of this TAM by expanding its product offerings and reaching a wider customer base.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in Brazil
- Extensive distribution network
- Integrated product suite
- Focus on MSMBs
- Experienced management team
Weaknesses
- Exposure to Brazilian macroeconomic conditions
- High competition in the fintech industry
- Credit risk associated with lending activities
- Integration challenges with acquired companies
Opportunities
- Expanding product offerings
- Reaching a wider customer base
- Acquiring complementary businesses
- Leveraging data analytics to improve credit risk assessment
- Further penetration of the digital banking space
Threats
- Increased competition from established players and new entrants
- Changes in government regulations
- Economic downturn in Brazil
- Cybersecurity risks
- Fluctuations in interest rates
Competitors and Market Share
Key Competitors
- PagSeguro Digital Ltd. (PAGS)
- Cielo S.A. (CIOXY)
- Adyen N.V. (ADYEY)
Competitive Landscape
StoneCo competes with both domestic and international players in the Brazilian fintech market. Its competitive advantages include its strong brand recognition, extensive distribution network, and integrated product suite. However, it faces challenges from established players with deeper pockets and greater resources.
Major Acquisitions
Linx S.A.
- Year: 2020
- Acquisition Price (USD millions): 1100
- Strategic Rationale: To expand StoneCo's software solutions and increase its reach to merchants.
Growth Trajectory and Initiatives
Historical Growth: StoneCo has experienced rapid growth in its early years, driven by the increasing adoption of digital payments in Brazil.
Future Projections: Analysts expect StoneCo to continue to grow its revenue and expand its market share in the coming years. However, profitability may remain under pressure due to macroeconomic headwinds and increased competition.
Recent Initiatives: Recent strategic initiatives include expanding its product offerings, acquiring complementary businesses, and investing in technology to improve its platform.
Summary
StoneCo is a prominent fintech company in Brazil, facing both considerable opportunities and challenges. Its strength lies in its integrated platform and focus on MSMBs, but its growth is tied to the Brazilian economy. Competition and regulatory changes pose potential threats, demanding careful navigation of the market, but its strong financial services and software platforms can create sustainability. StoneCo is positioned to continue growing if it can navigate the inherent macroeconomic challenges.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Research Reports
- Analyst Estimates
- Company Press Releases
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It is not financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.
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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