Stock fact sheet · data as of
StoneCo Ltd. (STNE): fair value, margin of safety and Wheel Score
Ticker symbol STNE · Technology · Software - Infrastructure · Cayman Islands · Class A common stock · Blend Income
STNE is StoneCo Ltd.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is STNE undervalued?
At 7.69 (close of 5 Nov 2026), STNE trades 89% below the GLS average fair value of 69.43. 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: Graham Number gives 23.13 while GLS Growth gives 154.94. 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for STNE, so the nightly engine files it under Blend (value score 89, growth score 74, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
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 | 42.31 | +450% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 23.13 | +201% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 74.98 | +875% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 27.59 | +259% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 154.94 | +1915% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 84.27 | +996% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 145.21 | +1788% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 44.34 | +477% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 28.12 | +266% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.56 | -80% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 13.53 | +76% | 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 "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.3 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
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 41.8%.
The dividend yield is high at 39.18% (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 | 6.3 / 10 | ROE | 19.7% |
| Debt / equity | 1.49 | ROA | 3.7% |
| Free-cash-flow yield | 41.8% | Payout ratio | 95% |
| Institutions | 8 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 49: Weak
STNE scores 49 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 5, can repay its debt - 13.3 years to repay its debt (over 3), and the parts are thin too - value strong, premium strong, moat good, health good, red flags weak, option trading fair, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 54% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 46,526 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 5.4M shares a day on a market cap of $1.8B, 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 rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 13.3 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 89% below fair value | |
| Premium | Strong | implied volatility 54% | |
| Moat | Good | moat 6.3/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Weak | Red Flags score 65/100 | |
| Option trading | Fair | 955 contracts a day, 46,526 open interest | |
| Stability | Weak | beta 1.54, $1.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
StoneCo Ltd. reports earnings on 12 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
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 |
|---|---|---|---|---|---|
| MQ Marqeta, Inc. | 18.60 | 38.46 | +52% | 80Good | $1.8B |
| ATEN A10 Networks, Inc. | 23.81 | 11.47 | -108% | 36Weak | $1.7B |
| PRGS Progress Software Corporation | 44.79 | 72.05 | +38% | 52Fair | $1.8B |
| NYAX Nayax Ltd. | 49.54 | 48.32 | -3% | 16No options | $1.9B |
| PGY Pagaya Technologies Ltd. | 19.12 | 65.07 | +71% | 44Weak | $1.6B |
| GCT GigaCloud Technology Inc. | 57.88 | 106.15 | +45% | 80Good | $2.1B |
| RDWR Radware Ltd. | 33.00 | 14.50 | -128% | 39Weak | $1.4B |
| BAND Bandwidth Inc. | 43.38 | 15.04 | -188% | 28Weak | $1.3B |
| PAYO Payoneer Global Inc. | 7.16 | 7.97 | +10% | 27Weak | $2.4B |
| NN NextNav Inc. | 8.76 | - | - | 17Weak | $1.2B |
| EEFT Euronet Worldwide, Inc. | 70.65 | 152.70 | +54% | 81Good | $2.6B |
| NTCT NetScout Systems, Inc. | 38.10 | 34.54 | -10% | 34Weak | $2.8B |
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Start free See the Sunday ScanQuestions about STNE
What kind of share is STNE?
STNE is StoneCo Ltd.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is STNE undervalued right now?
By the GLS models, yes: at 7.69 the stock is 89% below the average fair value of 69.43 (data as of 5 Nov 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 49 out of 100 (Weak) - it fails Wheel Trade Filter 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for STNE?
69.43 per share as of 5 Nov 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 12 Nov 2026 (after the close), 7 days from the data date of 5 Nov 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 30 listed contracts with 46,526 open interest across all expiries and implied volatility of 54% 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.