StoneCoFRA:0Q0 +2.11%77 Pretax Margin % is 17.52% as of Mar. 2026, which is 12% below its 10-year median of 19.87. GuruFocus rates FRA:0Q0 with a GF Score™ of 77/100 and a GF Value™ of €17.35 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,823 Software companies, StoneCo ranks better than 86.86% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. StoneCo's Pre-Tax Income for the
three
months ended in Mar. 2026 was €104 Mil. StoneCo's Revenue for the
three
months ended in Mar. 2026 was €592 Mil. Therefore, StoneCo's pretax margin for the quarter that ended in Mar. 2026 was 17.52%.
The historical rank and industry rank for StoneCo's Pretax Margin % or its related term are showing as below:
FRA:0Q0'
s Pretax Margin % Range Over the Past 10 Years
Min: -35.26 Med: 19.87 Max: 45.64
Current: 20.19
FRA:0Q0's Pretax Margin % is ranked better than 86.86% of 2823
companies
in the Software industry
Industry Median: 3.53
vs FRA:0Q0: 20.19
StoneCo (FRA:0Q0) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
StoneCo Pretax Margin % Related Terms
StoneCo Pretax Margin % Historical Data
* Premium members only.
The historical data trend for StoneCo's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:0Q0 vs EEFT, NN, PAY: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, StoneCo's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
StoneCo Pretax Margin % vs Software Industry
For the Software industry and Technology sector, StoneCo's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where StoneCo's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
StoneCo (FRA:0Q0) has a Pretax Margin % of 17.52% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on StoneCo and its competitors. This is 12% below median its historical median of 19.87. According to the industry distribution chart, StoneCo ranks #371 out of 2823 companies in the Software industry, placing it in the top 13.1%.
Is StoneCo's Pretax Margin % too high?
StoneCo's current Pretax Margin % of 17.52% is 12% below median its 10-year median of 19.87. The Software industry median Pretax Margin % is 3.53. StoneCo's value of 17.52% is 396.3% above this industry median. Based on the distribution chart, StoneCo ranks #371 out of 2823 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, StoneCo has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does StoneCo's Pretax Margin % compare to EEFT and NN?
According to the Software industry distribution chart, StoneCo ranks #371 out of 2823 companies for Pretax Margin %. This places StoneCo in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.53. StoneCo's value of 17.52% is 396.3% above this benchmark. While the company's 10-year median is 19.87 vs. the industry median of 3.53, StoneCo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. StoneCo's current Pretax Margin % of 17.52% is 396.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on StoneCo and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. StoneCo's current Pretax Margin % is 17.52%, which is 12% below median its own 10-year median of 19.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is StoneCo stock overvalued right now?
Based on GuruFocus' analysis, StoneCo (FRA:0Q0) is currently considered Possible Value Trap. The stock's GF Value™ is €17.35, compared to a current price of €9.38 — trading 45.9% below its estimated fair value. The current Pretax Margin % is 17.52%, which is 12% below median its 10-year median of 19.87 and 396.3% above the Software industry median of 3.53. StoneCo's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For StoneCo (FRA:0Q0), the current Pretax Margin % is 17.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is StoneCo (FRA:0Q0) Overvalued in 2026?
Based on GuruFocus' analysis, StoneCo stock appears to be undervalued.
The current stock price of €9.38 is trading 45.9% below its estimated GF Value™ of €17.35.
GuruFocus considers StoneCo to be Possible Value Trap.
Key valuation signals for FRA:0Q0:
Pretax Margin %: 17.52% (12% below median its 10-year median of 19.87)
GF Value™: €17.35 vs. price of €9.38 (45.9% below fair value)
Industry Position: 396.3% above the Software median (#371 of 2823)
No single metric tells the full story. See the FRA:0Q0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
StoneCo Ltd is a provider of financial technology solutions. It serves MSMBs solutions, at fair prices, and provides the customer experience to help them manage their businesses and sell more. Its Stone Business Model combines end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service. The brands of the company include: Stone: For small and medium-sized businesses, all management is integrated with the payment terminal, business bank account, and card, all within the same app. Ton: For micro-entrepreneurs and freelancers, modern card machines, sales via Pix or TapTon, and a Super Account. Stone pagar.me for those who sell online. Digital payment technology for all types of businesses.
77GF Score
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