Latest news with #StoneCo
Yahoo
5 days ago
- Business
- Yahoo
Can StoneCo's Software Divestment Unlock MSMB-Focused Growth?
StoneCo Ltd.'s STNE recent announcement for a strategic divestiture of a significant part of its software segment, representing 79% of its software segment revenues in 2024, signals a sharpened focus on its core financial services and micro, small and medium business (MSMB). It involves the proposed sale of Linx and related software assets to TOTVS for R$3.41 billion, for which it has entered into an agreement, as well as the already sold SimplesVet, a veterinary-focused software solution, to PetLove for R$140 million. The move is expected to enhance operating efficiency and profit margins as StoneCo doubles down on becoming Brazil's go-to platform for MSMBs. In the first quarter of 2025, StoneCo's MSMB total payment volume (TPV) rose 17% year over year to R$119.5 billion amid effective repricing efforts and expanding product adoption. Its client base also expanded by 17% to 4.3 million active MSMBs. Key to this momentum is the company's bundling strategy, where clients using three or more products increased to 38%, up sharply from 26% a year ago. This indicates success in cross-selling integrated payments, credit and banking services. The company's banking arm is also growing rapidly, with total retail deposits surging 38% to R$8.3 billion. StoneCo's credit portfolio hit R$1.4 billion, underpinned by prudent risk PIX instant payment system has emerged as a major monetization lever, with transaction volumes up 95% year over year. As PIX displaces traditional debit usage, it is increasing client deposits and engagement. Meanwhile, StoneCo projects MSMB TPV to exceed R$670 billion by 2027 — a 14% CAGR from the 2024 levels. How Are PagSeguro and MercadoLibre Performing? Among competitors, PagSeguro Digital Ltd. PAGS is intensifying its emphasis on the MSMB segment, which made up 74% of its TPV in the first quarter of 2025. MSMB TPV grew 11.2% year over year to R$95.2 billion, fueled by stronger point-of-sale (POS) usage. The company saw growth in its active SMB client base and performance, benefiting from its strategic pivot away from lower-value nano-merchants to more lucrative Inc. MELI also continues its robust fintech push through Mercado Pago, with TPV rising 43% year over year to $58.3 billion in the first quarter of 2025. MercadoLibre's monthly fintech users are up 30%+ year over year to 64 million. Its deep regional presence, especially in Argentina and Brazil, and investments in UX, logistics and credit continue to expand its flywheel advantage across Latin America. STNE's Price Performance, Valuation and Estimates Shares of StoneCo have surged 76.5% year to date, outperforming both the broader industry and the S&P 500 Index. Image Source: Zacks Investment Research From a valuation standpoint, StoneCo shares are cheap, as suggested by the Value Score of B. In terms of forward 12-month P/E, STNE is currently trading at 8.66X, which is below the industry average of 40.07X. Image Source: Zacks Investment Research StoneCo's estimate revisions reflect a positive trend. The Zacks Consensus Estimate for 2025 and 2026 EPS has been revised upward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests 10.4% growth year over year, while the same for 2026 calls for a 16.1% increase year over year. Image Source: Zacks Investment Research Currently, StoneCo carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE) : Free Stock Analysis Report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
22-07-2025
- Business
- CNA
Brazil's Totvs agrees to buy StoneCo's Linx unit
SAO PAULO :Brazilian software company Totvs has agreed to buy StoneCo's Linx unit in a deal worth 3.05 billion reais ($547.90 million), it said on Tuesday, adding that it expects the move to strengthen its position in the retail segment. Totvs has shown interest in Linx since 2020, when StoneCo won a bidding war by paying 6.7 billion reais for the retail software developer. In April, Totvs entered exclusive talks with StoneCo to acquire the unit. Sao Paulo-traded shares of Totvs seesawed after the announcement, climbing 3.1 per cent early in the session before erasing gains and falling as much as 1 per cent. They were last flat, while benchmark stock index Bovespa gained 0.6 per cent. Totvs said in a securities filing that the transaction will be financed through its cash reserves and debt instruments yet to be arranged "under favorable market conditions". The deal requires approval from Brazil's antitrust watchdog. "With this acquisition, we will strengthen our position in retail, expanding our portfolio and reinforcing our ability to meet the demands of all types of retailers," Totvs CEO Dennis Herszkowicz said in a statement. In an interview earlier this year, Herszkowicz told Reuters the company was considering other acquisitions besides Linx, adding that none of the potential deals would rely on capital from divestitures. ($1 = 5.5667 reais)
Yahoo
22-07-2025
- Business
- Yahoo
Brazil's Totvs agrees to buy StoneCo's Linx unit
SAO PAULO (Reuters) -Brazilian software company Totvs has agreed to buy StoneCo's Linx unit in a deal worth 3.05 billion reais ($547.90 million), it said on Tuesday, adding that it expects the move to strengthen its position in the retail segment. Totvs has shown interest in Linx since 2020, when StoneCo won a bidding war by paying 6.7 billion reais for the retail software developer. In April, Totvs entered exclusive talks with StoneCo to acquire the unit. Totvs said in a securities filing that the transaction will be financed through its cash reserves and debt instruments yet to be arranged "under favorable market conditions". The deal requires approval from Brazil's antitrust watchdog. ($1 = 5.5667 reais) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
22-07-2025
- Business
- Reuters
Brazil's Totvs agrees to buy StoneCo's Linx unit
SAO PAULO, July 22 (Reuters) - Brazilian software company Totvs ( opens new tab has agreed to buy StoneCo's (STNE.O), opens new tab Linx unit in a deal worth 3.05 billion reais ($547.90 million), it said on Tuesday, adding that it expects the move to strengthen its position in the retail segment. Totvs has shown interest in Linx since 2020, when StoneCo won a bidding war by paying 6.7 billion reais for the retail software developer. In April, Totvs entered exclusive talks with StoneCo to acquire the unit. Totvs said in a securities filing that the transaction will be financed through its cash reserves and debt instruments yet to be arranged "under favorable market conditions". The deal requires approval from Brazil's antitrust watchdog. ($1 = 5.5667 reais)
Yahoo
21-07-2025
- Business
- Yahoo
StoneCo (STNE) Slashes 11.63% Ahead of Q2
We recently published StoneCo Ltd. (NASDAQ:STNE) is one of this week's top performers. StoneCo fell by 11.63 percent week-on-week to end Friday's trading at $13.67 versus the $15.47 finish on July 11, as investors repositioned portfolios ahead of the release of its second quarter earnings performance. In a statement earlier this month, StoneCo Ltd. (NASDAQ:STNE) said it will announce the results of its earnings on August 7 after market close, to be followed by a conference call at 5 PM Eastern Time. In the first quarter of the year, StoneCo Ltd. (NASDAQ:STNE) saw net income increase by 38.3 percent to R$516.7 million from R$373.6 million in the same period last year. Total revenues rose by 19 percent to R$3.669 billion from R$3.084 billion year-on-year. A team of software engineers in a digital workspace collaborating on a financial technology software solution. For the second quarter, Zacks Research expects StoneCo Ltd. (NASDAQ:STNE) to post earnings of $0.34 per share, or a 13.33 percent growth year-on-year. Meanwhile, full-year EPS was pegged at $1.44 with revenues of $2.73 billion, representing growth of 6.67 percent and 10.94 percent, respectively. While we acknowledge the potential of STNE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
