ScoreWhy is StoneCo Ltd. ?
1
Flat results in Mar 26
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.08 times
- OPERATING PROFIT(Q) Lowest at USD -146.77 MM
- OPERATING PROFIT MARGIN(Q) Lowest at -105.21 %
2
With ROE of 21.24%, it has a very attractive valuation with a 2.00 Price to Book Value
- Over the past year, while the stock has generated a return of -28.73%, its profits have risen by 12.4% ; the PEG ratio of the company is 0.4
3
Rising Promoter Confidence
- Promoters have increased their stake in the company by 0.74% over the previous quarter and currently hold 3.45% of the company
- Promoters increasing their stake is a sign of high confidence in the future of the business
4
Below par performance in long term as well as near term
- Along with generating -28.73% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to StoneCo Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is StoneCo Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
StoneCo Ltd.
-28.73%
-0.36
53.39%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.21%
EBIT Growth (5y)
-280.32%
EBIT to Interest (avg)
-0.43
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.45
Sales to Capital Employed (avg)
0.20
Tax Ratio
69.75%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
97.22%
ROCE (avg)
0
ROE (avg)
9.97%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
2.00
EV to EBIT
-11.22
EV to EBITDA
-16.36
EV to Capital Employed
1.49
EV to Sales
9.33
PEG Ratio
0.35
Dividend Yield
NA
ROCE (Latest)
-13.27%
ROE (Latest)
21.24%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 654.71 MM
ROCE(HY)
Highest at 31.09%
NET PROFIT(Q)
Highest at USD 337.78 MM
EPS(Q)
Highest at USD 1.28
-16What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.08 times
OPERATING PROFIT(Q)
Lowest at USD -146.77 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -105.21 %
RAW MATERIAL COST(Y)
Grown by 17,137.5% (YoY
NET SALES(Q)
Lowest at USD 139.5 MM
Here's what is working for StoneCo Ltd.
Net Profit
At USD 337.78 MM has Grown at 218.33%
over average net sales of the previous four periods of USD 106.11 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 654.71 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Profit
Highest at USD 337.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.28
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Depreciation
Highest at USD 45.26 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for StoneCo Ltd.
Net Sales
At USD 139.5 MM has Fallen at -15%
over average net sales of the previous four periods of USD 164.11 MMMOJO Watch
Near term sales trend is very negative
Net Sales (USD MM)
Operating Profit
Lowest at USD -146.77 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at -105.21 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 0.08 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
Lowest at USD 139.5 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Raw Material Cost
Grown by 17,137.5% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 4.37 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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