CIOXY - StoneCo: Little Margin Of Safety And Skepticism About The Strategy
2024-06-17 23:55:55 ET
Summary
- StoneCo opts for a more capital-intensive business in acquiring. When it comes to granting credit, it has competition from banks that have been doing this for over 50 years.
- For this reason, I have the feeling that competitors' businesses are more complementary.
- Despite having the best financial indicators, the valuation has little potential for appreciation in my view.
Investment Thesis
I recommend holding StoneCo ( STNE ) shares. Although the company has good financial indicators, I don't see a good margin of safety in the valuation by P/E multiple against sectoral peers....
StoneCo: Little Margin Of Safety And Skepticism About The Strategy