StoneCo Ltd. (STNE): one to watch?

Cheap and genuinely profitable now, but slowing growth and margin pressure in Brazil's competitive payments market keep it a "prove it" story, not a slam-dunk bargain.

👀 WATCH Fundamentals66/100

Down 88% from its all-time high of $92.34 — now $10.89

Why STNE dropped

The stock's 2021 collapse came from a botched credit-business rollout, regulatory/accounting changes, and Brazil's economic downturn, which also triggered a securities fraud lawsuit; that lawsuit was later settled for about $26.75 million with no admission of wrongdoing, and the company has since restructured and become solidly profitable (44% operating margin, 26% net margin).

Fwd P/E 4.5Op margin 44.3%Rev growth 4.3%Debt/equity 133.6%Analyst upside 46.4%

How this scored 66/100

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

✅ Makes money Net profit margin 25.9%

✅ Generates cash Free cash flow $2.3B

✅ Not drowning in debt Debt/equity 133.6% (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 44.3% 9/9

Net profit margin 25.9% 8/8

Return on equity 30.7% 8/8

Growth Is it getting bigger, or dying? 11/25

Revenue growth 4.3% 3/9

Earnings growth 273.8% 8/8

Expected profit change -11.9% 0/8

Value Is it cheap right now? 18/25

Forward P/E 4.5 10/10

PEG ratio unknown 2/8

Analyst target upside 46.4% 5/7

Balance sheet Will it survive? 12/25

Debt / equity 133.6% 4/10

Current ratio 1.3 2/8

Free cash flow $2.3B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-28. Research only — not financial advice.