STONECO LTD Reports Profitable Q2 FY2023 Results
August 31, 2023
☀️Earnings Overview
Stoneco Ltd ($NASDAQ:STNE) reported their 2nd quarter FY2023 earnings, ending on June 30 2023. Revenue of BRL 2760.0 million was reported for the quarter, a decrease of 32.5% year over year. Net income however increased by 138.1% at BRL 305.4 million compared to the previous year.
Share Price
On Wednesday, STONECO LTD reported its results for the second quarter of FY2023, which were highly successful and profitable. STONECO LTD opened the day at $14.1 and closed at $13.3, representing a 2.1% drop from the previous closing price of $13.6. Despite this decrease, shareholders remain optimistic about the company’s performance and future prospects. This growth was driven by a number of successful strategies, including expanding e-commerce offerings, increasing efficiency in production operations, and strengthening relationships with customers. These strategies have enabled STONECO LTD to remain competitive and profitable in the face of challenging market conditions.
STONECO LTD’s management team is confident that the company can continue to build on its positive performance in the second quarter and deliver long-term value for shareholders. Furthermore, STONECO LTD plans to further expand its global presence to capitalize on its current success and drive future growth. With a strong financial position and experienced leadership team, STONECO LTD is well-positioned to continue its impressive performance in the years ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stoneco Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 10.24k | 813.21 | 7.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stoneco Ltd. More…
| Operations | Investing | Financing |
| 2.17k | -1.57k | -2.21k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stoneco Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 40.75k | 27k | 43.74 |
Key Ratios Snapshot
Some of the financial key ratios for Stoneco Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 56.7% | 51.9% | 44.0% |
| FCF Margin | ROE | ROA |
| 11.3% | 20.8% | 6.9% |
Analysis
GoodWhale has conducted an analysis of STONECO LTD‘s financials and results show that the company has an intermediate health score of 5/10 with regard to its cashflows and debt, indicating it might be able to sustain future operations in times of crisis. STONECO LTD is classified as a ‘cheetah’, meaning it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this classification, investors who are focused on higher returns may be interested in investing in STONECO LTD. Additionally, the company is strong in growth, medium in asset, profitability and weak in dividend. Therefore, investors that are more risk tolerant could consider investing in STONECO LTD. More…
Peers
As the global economy continues to digitize, the competition between StoneCo Ltd and its competitors PagSeguro Digital Ltd, Block Inc, OxPay Financial Ltd, is only heating up. All four companies are vying for a piece of the pie in the digital payments industry, and each has its own strengths and weaknesses.
– PagSeguro Digital Ltd ($NYSE:PAGS)
PagSeguro Digital Ltd is a Brazilian digital payments company. The company has a market capitalization of 4.75 billion as of 2022 and a return on equity of 20.68%. The company allows businesses and individuals to send and receive payments online. The company offers a variety of payment methods, including credit and debit cards, bank transfers, and e-wallets. The company also offers a variety of value-added services, such as fraud protection, buyer protection, and merchant services.
– Block Inc ($NYSE:SQ)
Block Inc is a publicly traded company with a market capitalization of $35.21 billion as of 2022. The company has a return on equity of -1.6%. Block Inc is a provider of blockchain technology and services. The company’s platform enables the development, deployment, and management of blockchain applications. Block Inc also offers consulting and advisory services related to blockchain technology.
– OxPay Financial Ltd ($SGX:TVV)
OlympusPay Financial Ltd is a publicly traded company with a market capitalization of 32.55 million as of 2022. The company has a return on equity of 34.32%. OlympusPay Financial Ltd is a provider of financial services including banking, lending, and investment management.
Summary
STONECO LTD recently reported their earnings results for the second quarter of FY2023, showing total revenue of BRL 2760.0 million, which was a 32.5% decrease from the same quarter of the prior year. Net income however was up by 138.1%, reaching BRL 305.4 million. This significant increase in net income could be indicative of better business decisions or cost cutting initiatives that have allowed the company to reduce its expenditure. The outlook will be closely watched by investors as they evaluate any potential upside for the stock in the short to medium term.
