STNEStoneCo Ltd.
Is the business good?
More warning than reassurance: thin cash backing (0.3×) and returns that lean on debt.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 21% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is STNE?
StoneCo Ltd. keeps 20% of every revenue dollar as operating profit, against 7.5% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 7.5% · fiscal year to FY2025
- Cash conversion
- 0.31×
Cash conversion · −1.84× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −12%
Share count, year on year · bought back, each share owns more of the company
- Gross margin
- 76%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 34% |
| FY2021 | −30% |
| FY2022 | −4.0% |
| FY2023 | 18% |
| FY2024 | 21% |
| FY2025 | 20% |
Details›
- Gross marginfiscal year to FY2025
- 76%
- Operating marginfiscal year to FY2025
- 20%
- Net marginfiscal year to FY2025
- 17%
- Free cash flow margin
- −0.20%
- Revenue, trailing twelve months
- $14.2B
- Free cash flow, trailing twelve months
- −$29M
- Net income, trailing twelve months
- $2.34B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #22 of 78 by RyuScore