Breaking Down StoneCo: 6 Analysts Share Their Views

In the preceding three months, 6 analysts have released ratings for StoneCo STNE, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $13.17, a high estimate of $19.00, and a low estimate of $9.00. Highlighting a 23.3% decrease, the current average has fallen from the previous average price target of $17.17.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive StoneCo is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to StoneCo. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of StoneCo compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of StoneCo's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of StoneCo's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on StoneCo analyst ratings.

Unveiling the Story Behind StoneCo

StoneCo Ltd is a provider of financial technology solutions. It serves MSMBs great solutions, at fair prices, and provides the customer experience to help them manage their businesses and sell more. Its Stone Business Model combines end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service. It has two segments Financial Services offers payments, digital banking, and credit solutions, focusing Ton solution mainly on micro-merchants, and Stone solution on SMBs. In Software, it offers POS and ERP solutions for different retail and services verticals, Customer Relationship Management, engagement tools, e-commerce, and Order Management System solutions, among others.

StoneCo's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: StoneCo displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 8.82%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: StoneCo's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.8%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): StoneCo's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.55%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): StoneCo's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.03%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.66.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.