StoneCoMEX:STNE N +1.85%73 ROE % is 59.97% as of Mar. 2026, which is 3250% above its 10-year median of 1.79. GuruFocus rates MEX:STNE N with a GF Score™ of 73/100 and a GF Value™ of MXN351.76 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,682 Software companies, StoneCo ranks better than 90.19% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. StoneCo's annualized net income for the quarter that ended in Mar. 2026 was MXN23,538 Mil. StoneCo's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN39,250 Mil. Therefore, StoneCo's annualized ROE % for the quarter that ended in Mar. 2026 was 59.97%.
The historical rank and industry rank for StoneCo's ROE % or its related term are showing as below:
MEX:STNE N'
s ROE % Range Over the Past 10 Years
Min: -22.65 Med: 1.79 Max: 31.02
Current: 31.02
During the past 10 years, StoneCo's highest ROE % was 31.02%. The lowest was -22.65%. And the median was 1.79%.
MEX:STNE N's ROE % is ranked better than 90.19% of 2682
companies
in the Software industry
Industry Median: 4.72
vs MEX:STNE N: 31.02
StoneCo (MEX:STNE N) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
StoneCo ROE % Related Terms
StoneCo ROE % Historical Data
* Premium members only.
The historical data trend for StoneCo's ROE % 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.
For the Software - Infrastructure subindustry, StoneCo's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, StoneCo's ROE % distribution charts can be found below:
* The bar in red indicates where StoneCo's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
StoneCo (MEX:STNE N) has a ROE % of 59.97% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on StoneCo and its competitors. This is 3250% above median its historical median of 1.79. According to the industry distribution chart, StoneCo ranks #263 out of 2682 companies in the Software industry, placing it in the top 9.8%.
Is StoneCo's ROE % too high?
StoneCo's current ROE % of 59.97% is 3250% above median its 10-year median of 1.79. The Software industry median ROE % is 4.72. StoneCo's value of 59.97% is 1170.6% above this industry median. Based on the distribution chart, StoneCo ranks #263 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, StoneCo has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does StoneCo's ROE % compare to EEFT and NN?
According to the Software industry distribution chart, StoneCo ranks #263 out of 2682 companies for ROE %. This places StoneCo in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. StoneCo's value of 59.97% is 1170.6% above this benchmark. While the company's 10-year median is 1.79 vs. the industry median of 4.72, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. StoneCo's current ROE % of 59.97% is 1170.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on StoneCo and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. StoneCo's current ROE % is 59.97%, which is 3250% above median its own 10-year median of 1.79. 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 (MEX:STNE N) is currently considered Possible Value Trap. The stock's GF Value™ is MXN351.76, compared to a current price of MXN193.00 — trading 45.1% below its estimated fair value. The current ROE % is 59.97%, which is 3250% above median its 10-year median of 1.79 and 1170.6% above the Software industry median of 4.72. StoneCo's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For StoneCo (MEX:STNE N), the current ROE % is 59.97% 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 (MEX:STNE N) Overvalued in 2026?
Based on GuruFocus' analysis, StoneCo stock appears to be undervalued.
The current stock price of MXN193.00 is trading 45.1% below its estimated GF Value™ of MXN351.76.
GuruFocus considers StoneCo to be Possible Value Trap.
Key valuation signals for MEX:STNE N:
ROE %: 59.97% (3250% above median its 10-year median of 1.79)
GF Value™: MXN351.76 vs. price of MXN193.00 (45.1% below fair value)
Industry Position: 1170.6% above the Software median (#263 of 2682)
No single metric tells the full story. See the MEX:STNE N 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.
73GF Score
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