StoneCo Ltd. cash flow to debt ratio of 3.77% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

StoneCo Ltd.'s free cash flow has increased -99.42% from $-4.89G last year to $-28.43M, signaling increasing performance

StoneCo Ltd.'s debt to equity ratio is 1.29, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

StoneCo Ltd.'s debt has increased relative to shareholder equity from 1.10 last year to 1.29 today, signaling weakened financials

StoneCo Ltd. has a net debt to EBITDA ratio of 2.23x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

StoneCo Ltd.'s interest coverage ratio of 2.73 indicates that earnings with margin can cover interest payments on company debt

StoneCo Ltd.'s profit margin has increased (-308.79%) in the last year from -11.89% to 24.83%, signaling increasing performance

StoneCo Ltd.'s short-term assets of $52.40G exceed its short-term liabilities of $40.39G

StoneCo Ltd.'s return on assets of 5.87% is higher than the 5.00% threshold, indicating efficient asset utilization

StoneCo Ltd.'s return on equity of 29.41%, is higher than 15.00%, indicating good performance

StoneCo Ltd.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

StoneCo Ltd. had positive net income in only 2.00 out of 5 years, indicating unstable earnings

StoneCo Ltd. has negative free cash flow, indicating the company is burning cash rather than generating it

StoneCo Ltd. has negative free cash flow, indicating cash burn

StoneCo Ltd.'s yearly earnings has increased -253.30% since last year from $-1.52G to $2.32G, signaling increasing performance

StoneCo Ltd.'s yearly revenue has decreased -73.97% since last year from $12.74G to $3.32G, signaling decreasing performance

ROIC 24.79% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

StoneCo Ltd.'s 3-year revenue CAGR of 16.22% is positive, indicating growing revenue over the past 3 years

StoneCo Ltd. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

StoneCo Ltd. had positive ROE in only 2.00 out of 5 years, indicating inconsistent returns on equity

StoneCo Ltd. has insufficient data to evaluate this check.

StoneCo Ltd. has an earnings yield of 127.42%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

StoneCo Ltd. is undervalued relative to its fair value price of 102.14 based on EBITDA multiple model

StoneCo Ltd. has an EV/EBITDA ratio of 3.62x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

StoneCo Ltd. is undervalued relative to its fair value price of 551.78 based on Earnings Fair Value model

StoneCo Ltd. has a PEG-ratio under 1 which is considered undervalued

StoneCo Ltd. has a price-to-book ratio of 1.16x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

StoneCo Ltd. has a price-to-sales ratio of 0.99x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue