StoneCo Ltd. (STNE) – Growing profitability & macroeconomic uncertainty

StoneCo Ltd. (STNE) (Q1FY23)

Introduction

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.

It distributes its solutions, principally through proprietary 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 approximately 2.6 million clients primarily small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors.

Highlights

StoneCo is well-positioned to capitalize on this market opportunity, as the demand for digital payment solutions is growing due to the increasing shift toward e-commerce and the need for robust digital infrastructure.

Stock performance

StoneCo stock price has been declining in recent times as stock price grew 54% to $13.77 in Jul’23 from $8.95 in Apr’23, but it has recently reported a net income in Q1FY23 and topline growth accelerates in the coming years.

StoneCo stock price showed a volatile trend in the past 3-months period and gave a 5% return. The stock price rose by 17% in the past 1-year. The stock has a 52-week high of $8.07 and a 52-week low of $14.83.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 33

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