$StoneCo (STNE.US)$Listed in 2018, mainly for financial serv...

Revenue has continued to grow rapidly over the past 5 years. Major acquisitions were carried out in 2021. As a result, operating profit shrank by 31% in 2021, increased sharply by 2.6 times in 2022, and net profit lost in the past two years due to acquisitions. Interest expenses account for 79% of operating profit in 2022, and the interest burden is extremely heavy.

In the first three quarters of 2023, revenue increased by 28.3%, and operating profit increased by 54.1%. Affected by a sharp drop in other non-operating expenses, net profit increased 2.6 times to 940 million.

The balance ratio has increased from 61.7% to 69.4% in the past 5 years, mainly affected by acquisitions in 2021, and has now dropped to 67.7%. Goodwill and other intangible assets of $8.733 billion, accounting for 61.6% of net assets of $14.169 billion, and long-term loans of $2,729 billion, accounting for 19.3% of net assets, with a high leverage ratio. There are very few treasury stocks, and the share capital increased dramatically in 2020, and there has been no change in the past two years.

Currently, the liquidity ratio is all moving at a rate of 1.3, so there is little liquidity problem.

Over the past five years, net operating cash flow has been significantly lower than net investment, and no shareholders' surpluses have been generated.

Currently, the price-earnings ratio is TTM 27.2. As the impact of non-operating losses due to acquisitions gradually weakens, profits are likely to increase dramatically, so you can choose carefully (⭐️)