Stock fact sheet · data as of
StoneCo Ltd. (STNE): fair value, margin of safety and Wheel Score
Technology · Software - Infrastructure · Cayman Islands · High Growth
Is STNE undervalued?
At 11.48 (close of 16 Oct 2026), STNE trades 92% below the GLS average fair value of 145.93. That average comes from 9 models run on the latest filings, and 9 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns StoneCo Ltd. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: Lynch gives 29.87 while 10 Cap gives 392.13. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files STNE under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for STNE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 44.11 | +284% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 108.01 | +841% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 81.25 | +608% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 29.87 | +160% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 168.15 | +1365% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 392.13 | +3316% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 271.91 | +2269% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 187.39 | +1532% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 30.52 | +166% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 8.47 | -26% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 13.65 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - STNE passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.1 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 7.9%, ROE 19.7%, ROA 3.7% - with debt at 1.49 times equity and a free-cash-flow yield of 30.2%.
The dividend yield is high at 22.04% (payout ratio 95%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 8/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 7.9% |
|---|---|---|---|
| GLS Moat | 4.1 / 10 | ROE | 19.7% |
| Debt / equity | 1.49 | ROA | 3.7% |
| Free-cash-flow yield | 30.2% | Payout ratio | 95% |
| Institutions | 8 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 80: Prime
STNE scores 80 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (6/15), the option premium on offer (19/20) and how easily the stock trades (17/20).
Implied volatility is 66% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. The option chain is deep: 136,932 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 5.5M shares a day on a market cap of $2.6B, with a beta of 1.54 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 92% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 4.1/10 | |
| Premium | 19 / 20 | implied volatility 66% | |
| Stability | 17 / 20 | 5.5M shares/day, $2.6B cap, beta 1.54 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to StoneCo Ltd. by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TDC Teradata Corporation | 29.89 | 102.56 | +71% | 86Prime | $2.8B |
| NTCT NetScout Systems, Inc. | 38.76 | 34.54 | -12% | 65Good | $2.8B |
| EEFT Euronet Worldwide, Inc. | 65.54 | 155.01 | +58% | 86Prime | $2.5B |
| CLBT Cellebrite DI Ltd. | 11.38 | 10.76 | -6% | 66Good | $2.9B |
| PAYO Payoneer Global Inc. | 7.14 | 7.93 | +10% | 72Good | $2.4B |
| RAMP LiveRamp Holdings, Inc. | 37.61 | 76.12 | +51% | 72Good | $2.3B |
| APPN Appian Corporation | 43.82 | 32.86 | -33% | 45Weak | $3.1B |
| AVPT AvePoint, Inc. | 14.87 | 12.24 | -21% | 59Fair | $3.1B |
| GCT GigaCloud Technology Inc. | 59.34 | 105.83 | +44% | 83Prime | $2.1B |
| ATEN A10 Networks, Inc. | 25.39 | 11.36 | -124% | 55Fair | $1.8B |
| MQ Marqeta, Inc. | 18.99 | 9.00 | -111% | 55Fair | $1.8B |
| PAY Paymentus Holdings, Inc. | 30.61 | 24.61 | -24% | 57Fair | $3.9B |
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Start free See the Sunday ScanQuestions about STNE
Is STNE undervalued right now?
By the GLS models, yes: at 11.48 the stock is 92% below the average fair value of 145.93 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of STNE and what does it mean?
STNE scores 80 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for STNE?
145.93 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does StoneCo Ltd. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STNE have listed options, and how liquid are they?
Yes. The nightly snapshot found 250 listed contracts with 136,932 open interest across all expiries and implied volatility of 66% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.