StoneCo Ltd.
StoneCo Ltd. Class A Common Shares represent ownership in StoneCo Ltd., a financial technology company focused on serving merchants and integrated partners in Brazil. StoneCo provides software and payment solutions that support electronic commerce across in-store, online, and mobile channels, with services spanning electronic payments, alternative payment methods, digital banking, prepayment, and credit solutions. The company also offers tools designed to help businesses manage transactions and improve customer experiences, including split-payment processing, recurring payments, multi-payment processing, and tap-on-phone functionality. StoneCo’s platform is aimed primarily at micro, small, and medium-sized businesses, as well as other commercial clients that need integrated financial and software services. Its business is centered on enabling day-to-day commerce through technology, payments infrastructure, and financial services tailored to Brazil’s evolving digital economy.
$11.27
-$0.11 (-0.97%)
EOD Oct 16, 2026
Margins and capital returns are both well above average: 51.98% operating margin, ROIC at 22.25%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 5.2%, steady but not accelerating.
Negative free cash flow of -BRL 512M. The business is consuming cash, not generating it.
4.1x earnings, 3.9x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
BRL 13.85B
▲ +5.2% YoY
Net Income (TTM)
BRL 3.38B
▲ +255.2% YoY
Op. Margin
49.81%
▲ +4.0pp YoY
ROIC
22.25%
▲ +0.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
BRL 3.59B
▲ +89.5% YoY
Op. Cash Flow (TTM)
BRL 4.71B
▲ +125.3% YoY
Net Debt
BRL 9.79B
Cash & Equiv.
BRL 7.80B
3Y CAGR: +14.1%
Continue Research
Is StoneCo (STNE) overvalued?
At a P/E of 4.1 and a price-to-free-cash-flow of 3.9, StoneCo (STNE) trades below a two-stage DCF intrinsic value of about BRL 351.57 per share, so at BRL 11.27 the stock looks undervalued (3,019.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, StoneCo scores 90/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 22.1%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is StoneCo's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about BRL 351.57 per share for STNE, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around BRL 263.68. At today's BRL 11.27, that puts the stock about 3,019.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is StoneCo a high-quality business?+
StoneCo scores 90 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 49.8% operating margin and a 22.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does StoneCo (STNE) pay a dividend, and how much?+
Yes, StoneCo pays a regular dividend of about BRL 12.65 per share per year (typically in quarterly installments), a yield of roughly 22.1% at the current price. That is a payout ratio of about 91.8% of earnings, so the dividend is stretched at this level. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For STNE's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is StoneCo a good stock to buy right now?+
That depends on valuation and quality together, not either alone. STNE currently trades below its estimated intrinsic value and scores 90/100 on quality (high-quality). It also yields about 22.1%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.