StoneCo Ltd.
StoneCo Ltd provides fintech solutions for merchants and partners in Brazil. Solutions are distributed through proprietary hubs offering local sales and services. Sales team sells solutions to brick-and-mortar and digital merchants. Company serves SMBs, marketplaces, e-commerce platforms, and software vendors. Founded in 2000 and headquartered in the Cayman Islands.
Overview
Sector
Software Infraestructure
Strengths
- With an appreciation Potential of 178.46%, based on our fundamental analysis, it suggests the stock may be undervalued.
- Current Price to Earnings Ratio (6.50) is lower than the sector mean (75.13).
- Price to book ratio (1.37) is lower than the sector mean (14.02).
- EV/EBITDA (4.83) is lower than the sector mean (45.96).
- EV/EBIT (5.87) is lower than the sector mean.
- Strong EBITDA Margin of 42.75%.
Weaknesses
- The company has high debt. Net Debt to EBITDA Ratio (2.20) is higher than the sector mean.
- The company have lower returns than the sector in which it operates. ROIC (2.38%) is significantly lower than the sector mean (16.38%).
- The Price to Free Cash Flow ratio (100.00) is significantly higher than the sector mean.
Key Financial Data