Added to YB: 2026-09-03
Pitch date: 2026-08-31
STNE [neutral]
StoneCo Ltd.
+7.91%
current return
Author Info
No bio for this author
Company Info
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.
Market Cap
$11.6B
Pitch Price
$9.61
Price Target
N/A
Dividend
N/A
EV/EBITDA
2.96
P/E
3.72
EV/Sales
1.50
Sector
Financial Services
Category
turnaround
WD #356: Various Brazilian Stocks - StoneCo Ltd.
STNE (pass): Remain out despite StoneCo’s apparent cheapness at 5x earnings, 3x EBITDA and aggressive buybacks. A Brazilian government payment tool compromised its original processing model, while the pivot toward lending to entrepreneurs is struggling: NPLs rose from 5.2% to 8.6% in six months, including 160 basis points in Q2, as revenue grew only 2.6% year over year. Stabilization and a rerating are possible, but the path is difficult.
Read full article (2 min)