WEBULL

StoneCo (STNE) Valuation Check After CEO Transition Plan And Leadership Reshuffle

Simply Wall St · 4d ago

Leadership reshuffle and why it matters for StoneCo shareholders

StoneCo (STNE) has announced a planned leadership reshuffle, with CEO Pedro Zinner set to step down for personal reasons in March 2026 and current CFO Mateus Scherer taking over.

Alongside this CEO handover, the company outlined further executive changes, including expanded responsibilities for Treasury Officer Diego Salgado and the departure of executive committee member Lia Matos. These moves are prompting fresh attention on execution and capital allocation.

See our latest analysis for StoneCo.

The leadership reshuffle comes after a mixed set of recent price moves, with a 1-day share price return of 3.98% to $14.63 but a 90-day share price return decline of 15.14%, while the 1-year total shareholder return of 83.56% contrasts with a 5-year total shareholder return loss of 81.58%. This suggests that recent momentum has cooled following a strong rebound.

If this kind of reset has you thinking about where else growth and fresh leadership might intersect, it could be worth scanning fast growing stocks with high insider ownership as a next step.

With shares at $14.63 and indicators such as an intrinsic discount signal and a discount to analyst targets, the key question now is simple: is StoneCo still undervalued, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 27.9% Undervalued

With a fair value estimate of $20.29 versus the last close at $14.63, the most followed narrative frames StoneCo as materially undervalued and anchors that view in long term earnings power.

The accelerating shift from cash to digital payments and financial inclusion among Brazil's small and micro businesses is expanding StoneCo's core addressable market; with current market share still low, this supports long-duration double-digit client and revenue growth.

Cross-selling of end-to-end financial solutions (payments, digital banking, working capital credit) is increasing client engagement and wallet share, demonstrated by growing deposit balances (+36% year-over-year) and credit portfolio expansion (+25% sequentially). This supports higher recurring revenue and long-term net earnings improvement.

Read the complete narrative.

Curious how this growth story turns a current loss into sizeable projected profits, shrinking share count, and a lower future earnings multiple than many financial peers? The full narrative lays out the revenue curve, margin shift, and earnings path that support that $20.29 fair value.

Result: Fair Value of $20.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on Brazil's macro backdrop and competition remaining manageable, while higher risk credit exposure and rising loss provisions could quickly pressure earnings.

Find out about the key risks to this StoneCo narrative.

Build Your Own StoneCo Narrative

If you are not fully convinced by this view or prefer to evaluate the numbers yourself, you can build a complete narrative in just a few minutes, starting with Do it your way.

A great starting point for your StoneCo research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If StoneCo has sharpened your thinking, do not stop here. Widening your watchlist now can put you in front of opportunities others ignore.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.