StoneX Group Inc. Common Stock (SNEX)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 16.7% above cost of capital
• Revenue growth of 39.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($57) with negative 86% margin of safety—limited downside protection
• High leverage at 8.06x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

StoneX Group Inc. Common Stock is a small-cap financial services company valued at $8.3 billion. The business generates $141.8 billion in annual revenue with a 0.1% net margin. From a quality standpoint, StoneX shows distressed Altman Z-Score of 1.4 warrants caution and adequate 17% ROE. On valuation, the stock is reasonably priced at 23.5x earnings, with trades above its Graham Number with a negative 86% margin. Growth dynamics show revenue growing at 39.7% and profit growth of 63.3%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

StoneX's 40% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 8.1x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer