Peeling Back The Layers: Exploring StoneCo Through Analyst Insights

Ratings for StoneCo STNE were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated StoneCo and provided 12-month price targets. The average target is $20.4, accompanied by a high estimate of $23.00 and a low estimate of $17.00. Observing a 36.0% increase, the current average has risen from the previous average price target of $15.00.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive StoneCo. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to StoneCo. This insight gives a snapshot of analysts' perspectives on 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: Delving into movements, analysts provide estimates for the future value of StoneCo's stock. This analysis reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of StoneCo's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on StoneCo analyst ratings.

About StoneCo

StoneCo Ltd is a provider of financial technology solutions. The company offers solutions that empower merchants to conduct electronic commerce seamlessly across in-store, online, and mobile channels in Brazil. Its Stone Business Model combines advanced, end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service.

Understanding the Numbers: StoneCo's Finances

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: Over the 3 months period, StoneCo showcased positive performance, achieving a revenue growth rate of 25.35% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: StoneCo's net margin excels beyond industry benchmarks, reaching 13.84%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.94%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): StoneCo's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.97%, the company showcases efficient use of assets and strong financial health.

Debt Management: StoneCo's debt-to-equity ratio is below the industry average. With a ratio of 0.33, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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