STNE (STNE): one to watch?

Cheap and still profitable, but rising bad loans and rate pressure mean the "bargain" could keep eroding — wait for credit trends to stabilize before buying.

👀 WATCH Fundamentals55/100

Down 90% from its all-time high of $92.34 — now $9.30

Why STNE dropped

The original 90% collapse happened back in 2021-22 when StoneCo's credit business blew up amid Brazilian rate hikes and a receivables-registry mess; the stock never recovered that high. The recent slide (down 10% from a 30-day high) reflects a fresh worry: credit quality worsened sharply, with the cost of risk at 21.9%, 90+ day NPLs near 7%, and provisions rising more than 50% QoQ, while StoneCo's 2026 guidance assumed a much lower year-end rate than what's playing out.

Fwd P/E 4.1Op margin 39.6%Rev growth 1.6%Debt/equity 187.7%Analyst upside 54.2%

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 -14.2% 0/8

Value Is it cheap right now? 19/25

Forward P/E 4.1 10/10

PEG ratio unknown 2/8

Analyst target upside 54.2% 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 2026-09-28. Research only — not financial advice.