StoneCo Ltd. (STNE): one to watch?

Cheap and still profitable, but growth has stalled and credit risk is rising — worth watching, not an obvious buy yet.

👀 WATCH Fundamentals55/100

Down 89% from its all-time high of $92.34 — now $10.02

Why STNE dropped

The stock's long-term collapse dates to the 2021 credit-book accounting scandal, but the recent slide is different: after a conservative 2026 guide-down in March 2026 the stock fell ~19%, and since then multiple banks (Goldman, BofA, UBS) have downgraded or cut price targets on weaker earnings from payment volume underperformance and lowered price targets, plus concerns about weak interest coverage that still hangs over StoneCo's balance sheet as its credit portfolio doubles.

Fwd P/E 4.3Op margin 39.6%Rev growth 1.6%Debt/equity 187.7%Analyst upside 52.4%

How this scored 55/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 24.7%

✅ Generates cash Free cash flow $7.1B

✅ Not drowning in debt Debt/equity 187.7% (limit 200%)

✅ Can pay its bills Current ratio 1.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 39.6% 9/9

Net profit margin 24.7% 8/8

Return on equity 34.0% 8/8

Growth Is it getting bigger, or dying? 2/25

Revenue growth 1.6% 2/9

Earnings growth -16.6% 0/8

Expected profit change -11.8% 0/8

Value Is it cheap right now? 19/25

Forward P/E 4.3 10/10

PEG ratio unknown 2/8

Analyst target upside 52.4% 6/7

Balance sheet Will it survive? 9/25

Debt / equity 187.7% 1/10

Current ratio 1.3 1/8

Free cash flow $7.1B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-09. Research only — not financial advice.