# StoneCo (STNE.US)

Canonical: https://gigainvestors.com/s/STNE

Analysis as of: 2026-10-16T07:32:08.289Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $11.38 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 5

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.32×

- FY2017: 0.34×

- FY2018: 0.46×

- FY2019: 0.55×

- FY2020: 0.44×

- FY2021: 0.20×

- FY2022: 0.39×

- FY2023: 0.46×

- FY2024: 0.46×

- FY2025: 0.51×

### moat: pass

- ROIC, median of available years: 27.2%

- ROIC, second-lowest year: 10.3%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 73.6%

- Recent gross margin (lower of latest and 3-year median): 73.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 11.4%

- ROIC including acquisitions, ten-year median: -4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 49.6%

- FY2017: 12.5%

- FY2018: 10.3%

- FY2020: 11.4%

- FY2021: 9.8%

- FY2022: 71.5%

- FY2023: >100%

- FY2024: 57.8%

- FY2025: 27.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.83×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 435M

- Net income, five-year total: BRL 521M

- Return on incremental invested capital: 27.0%

- Working capital / revenue, annual change: -65.4 pp

- Working capital / revenue, change between three-year averages: -451.0 pp

- Working capital / revenue, final three-year average: 209.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.32×

- FY2022: 0.85×

- FY2023: 1.00×

- FY2024: 1.02×

- FY2025: 1.13×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 12.5% vs 57.8%

- Per-share earnings: -0.39 to 4.99 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -3.2%

- Market cap gain: BRL -7.3B

- Cumulative retained earnings: BRL -5.7B

- Diluted shares, 5-year annual growth: -3.2%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: BRL 5.38

- Per-share value, starting three-year median: BRL -0.39

- Per-share value, ending three-year median: BRL 4.99

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 4.9%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: BRL 2.3B

- ROIC, first three-year median: 12.5%

- ROIC, last three-year median: 57.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL -0.58

- FY2017: BRL -0.39

- FY2018: BRL 1.09

- FY2019: BRL 2.90

- FY2020: BRL 2.92

- FY2021: BRL -4.40

- FY2022: BRL -1.66

- FY2023: BRL 4.99

- FY2024: BRL -5.30

- FY2025: BRL 9.33

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 2.7%

- Receivables to sales index (DSRI): 1.29×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 44.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.29×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 9.7%

- FY2017: 17.7%

- FY2018: 20.4%

- FY2020: 2.5%

- FY2021: -11.8%

- FY2022: -5.2%

- FY2023: -0.1%

- FY2024: 3.8%

- FY2025: 2.7%

## Holders

## Price story

Down 66% since Oct 2021 · sales +11.1%

Story as of 2026-10-16T09:59:38.159Z; price observation 2026-10-15.

- 2025-06-06: StoneCo's Q1 Repricing Drives Gross Profit Surge Amid Rate Pressures ([finance.yahoo.com](https://finance.yahoo.com/news/stonecos-q1-repricing-drives-gross-130900041.html))

- 2025-08-21: Earnings call transcript: StoneCo Q2 2025 earnings beat expectations with strong EPS ([investing.com](https://www.investing.com/news/transcripts/earnings-call-transcript-stoneco-q2-2025-earnings-beat-expectations-with-strong-eps-93CH-4205417))

- 2025-09-23: Surging Earnings Estimates Signal Upside for StoneCo (STNE) Stock ([finance.yahoo.com](https://finance.yahoo.com/news/surging-earnings-estimates-signal-upside-162002522.html))

### Sales · FY2024–2025

sales +11.1%; source https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm; observed 2026-04-23.

- FY2016: BRL 423M 

- FY2017: BRL 741M 

- FY2018: BRL 1.5B 

- FY2019: BRL 2.4B 

- FY2020: BRL 3.2B 

- FY2021: BRL 4.6B 

- FY2022: BRL 9.0B 

- FY2023: BRL 11B 

- FY2024: BRL 13B 

- FY2025: BRL 14B 

### Gross margin · FY2025

gross margin 76.2%; source https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm; observed 2026-04-23.

- FY2016: 68.5% 

- FY2017: 69.8% 

- FY2018: 78.9% 

- FY2019: 82.1% 

- FY2020: 75.7% 

- FY2021: 62.6% 

- FY2022: 70.4% 

- FY2023: 73.8% 

- FY2024: 73.4% 

- FY2025: 76.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are BRL 14.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm (filed 2026-04-23); FY2025: revenue 14153841000; grossProfit 10788410000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); STNE.US: 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.

### Why customers stay

Margins ranged from 73.4% to 76.2% during 2023–25; it earns 27.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2023: grossProfit / revenue = 73.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2024: grossProfit / revenue = 73.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm (filed 2026-04-23); FY2025: grossProfit / revenue = 76.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); 10-year return on capital observations [[2016,0.4955023476807901],[2017,0.12476765590172725],[2018,0.10276489469890142],[2020,0.11375821103552493],[2021,0.09764646509256322],[2022,0.7145906520912896],[2023,1.7372259215733628],[2024,0.5777243360190988],[2025,0.2723810793132158]]; median 0.2723810793132158. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 5 of 10 years; bought back BRL 2.9 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2018: growth capex 93367000; upkeep 92333000; owner earnings 301232000. Growth capex / owner earnings = 0.30995047006958093.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2019: growth capex 186516659.5348707; upkeep 213432340.4651293; owner earnings 753195659.5348707. Growth capex / owner earnings = 0.2476337418753215.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2020: growth capex 170399773.49224818; upkeep 284703226.5077518; owner earnings 825661773.4922482. Growth capex / owner earnings = 0.20637963263276593.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2023: growth capex 332116000; upkeep 878181000; cash acquisitions 37806000; owner earnings 1592065000. Growth capex plus acquisitions / owner earnings = 0.23235357852851485.

- Source: https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm (filed 2026-04-23); FY2025: growth capex 0; upkeep 691705430; cash acquisitions 761000; owner earnings 2633927570. Growth capex plus acquisitions / owner earnings = 0.00028892214374748353.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,7832590000],[2021,2967000],[2022,3601000],[2023,5983000],[2024,10454000],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm (filed 2026-04-23); FY2025: cash repurchases 2928359093 BRL.

### Are managers owners

Insiders own 3.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); STNE.US SharesStats.PercentInsiders = 3.288 percentage points; cache date 2026-10-16.

### What the price says

The price is 1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); Closing price 11.38 USD; reporting-to-trading FX 0.19614; FY2025 annual sales per share 56.86450628103329; price multiple 1.0203162848504401. FY2025 cash earnings/share 10.58207385882403. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-10: $28.69 per share

- 2018-11: $23.57 per share

- 2018-12: $18.44 per share

- 2019-01: $22.12 per share

- 2019-02: $30.41 per share

- 2019-03: $41.11 per share

- 2019-04: $28.79 per share

- 2019-05: $25.20 per share

- 2019-06: $29.58 per share

- 2019-07: $35.01 per share

- 2019-08: $30.08 per share

- 2019-09: $34.78 per share

- 2019-10: $36.79 per share

- 2019-11: $40.98 per share

- 2019-12: $39.89 per share

- 2020-01: $43.44 per share

- 2020-02: $39.89 per share

- 2020-03: $21.77 per share

- 2020-04: $26.38 per share

- 2020-05: $31.68 per share

- 2020-06: $38.76 per share

- 2020-07: $47.71 per share

- 2020-08: $51.00 per share

- 2020-09: $52.89 per share

- 2020-10: $52.54 per share

- 2020-11: $73.22 per share

- 2020-12: $83.92 per share

- 2021-01: $71.90 per share

- 2021-02: $85.81 per share

- 2021-03: $61.22 per share

- 2021-04: $64.64 per share

- 2021-05: $65.97 per share

- 2021-06: $67.06 per share

- 2021-07: $58.84 per share

- 2021-08: $46.54 per share

- 2021-09: $34.72 per share

- 2021-10: $33.86 per share

- 2021-11: $15.60 per share

- 2021-12: $16.86 per share

- 2022-01: $15.58 per share

- 2022-02: $11.24 per share

- 2022-03: $11.70 per share

- 2022-04: $9.42 per share

- 2022-05: $10.04 per share

- 2022-06: $7.70 per share

- 2022-07: $9.58 per share

- 2022-08: $9.48 per share

- 2022-09: $9.53 per share

- 2022-10: $10.50 per share

- 2022-11: $11.68 per share

- 2022-12: $9.44 per share

- 2023-01: $11.16 per share

- 2023-02: $8.51 per share

- 2023-03: $9.54 per share

- 2023-04: $12.32 per share

- 2023-05: $12.53 per share

- 2023-06: $12.74 per share

- 2023-07: $14.49 per share

- 2023-08: $12.26 per share

- 2023-09: $10.67 per share

- 2023-10: $9.91 per share

- 2023-11: $15.60 per share

- 2023-12: $18.03 per share

- 2024-01: $17.19 per share

- 2024-02: $17.21 per share

- 2024-03: $16.61 per share

- 2024-04: $15.60 per share

- 2024-05: $13.84 per share

- 2024-06: $11.99 per share

- 2024-07: $13.12 per share

- 2024-08: $13.26 per share

- 2024-09: $11.26 per share

- 2024-10: $11.10 per share

- 2024-11: $9.48 per share

- 2024-12: $7.97 per share

- 2025-01: $9.17 per share

- 2025-02: $9.25 per share

- 2025-03: $10.48 per share

- 2025-04: $14.06 per share

- 2025-05: $13.65 per share

- 2025-06: $16.04 per share

- 2025-07: $12.78 per share

- 2025-08: $16.47 per share

- 2025-09: $18.91 per share

- 2025-10: $19.01 per share

- 2025-11: $16.85 per share

- 2025-12: $14.79 per share

- 2026-01: $16.14 per share

- 2026-02: $16.80 per share

- 2026-03: $14.12 per share

- 2026-04: $10.98 per share

- 2026-05: $11.45 per share

- 2026-06: $10.84 per share

- 2026-07: $11.38 per share

- 2026-08: $9.70 per share

- 2026-09: $9.34 per share

- 2026-10: $11.38 per share

## Annual estimated value (USD per share)

- FY2020: low $12.09 per share, central $12.71 per share, high $13.55 per share

- FY2021: low $11.81 per share, central $12.67 per share, high $13.82 per share

- FY2022: low $17.66 per share, central $19.34 per share, high $21.58 per share

- FY2023: low $17.96 per share, central $19.43 per share, high $21.39 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1745431/000207097926000170/stne-20251231.htm); period 2025-12-31, filed 2026-04-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.