StoneCo (NASDAQ:STNE): A Deep Dive into Capital Efficiency and Value Creation

Font: Financial Modeling Prep  • Jun 05, 2026

• StoneCo (NASDAQ:STNE) demonstrates strong value creation, with its Return on Invested Capital (ROIC) significantly higher than its Weighted Average Cost of Capital (WACC).
• The company leads its peers in capital efficiency, outperforming major competitors like MercadoLibre and PagSeguro Digital in converting capital into profit.
• Unlike some growth-focused technology companies, StoneCo exhibits robust profitability and a strong business model, highlighting its effective management of investments.

StoneCo (NASDAQ:STNE) is a leading provider of financial technology solutions in Brazil. The company offers software and hardware for businesses of all sizes to manage payments, banking, and credit. It operates in a competitive Brazilian market alongside other major players like MercadoLibre (NASDAQ: MELI) and PagSeguro Digital (NYSE: PAGS).

A key way to judge a company's financial performance is by comparing its Return on Invested Capital (ROIC) to its Weighted Average Cost of Capital (WACC). ROIC measures the profit a company earns from its investments. WACC is the average cost of the money it uses to fund those investments.

StoneCo shows strong value creation. Its ROIC is 24.79%, which is significantly higher than its WACC of 10.79%. This creates a positive spread of 13.99%. This means for every dollar of capital cost, StoneCo generates $2.30 in returns, showing very effective management and strong business profitability.

When compared to its peers, StoneCo is a clear leader in capital efficiency. Its ROIC to WACC ratio of 2.30 is much higher than MercadoLibre's 1.29 and PagSeguro Digital's 1.01. This suggests StoneCo is better at converting its capital into profit than its direct competitors in the fintech sector.

Other technology peers like Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) currently have negative ROICs of -0.41% and -3.22%. While common for growth companies that reinvest heavily, it shows they are not yet earning more than their capital costs. This highlights StoneCo's current profitability and strong business model in the competitive financial technology landscape.