3 Reasons to Avoid SNEX and 1 Stock to Buy Instead

3 Reasons to Avoid SNEX and 1 Stock to Buy Instead

Jabin Bastian

Thu, February 19, 2026 at 1:02 PM GMT+9 3 min read

In this article:

SNEX

-1.55%

^GSPC

-0.31%

StoneX currently trades at $129.54 and has been a dream stock for shareholders. It’s returned 386% since February 2021, blowing past the S&P 500’s 75.1% gain. The company has also beaten the index over the past six months as its stock price is up 34.2% thanks to its solid quarterly results.

Is there a buying opportunity in StoneX, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Is StoneX Not Exciting?

We’re glad investors have benefited from the price increase, but we’re swiping left on StoneX for now. Here are three reasons we avoid SNEX and a stock we’d rather own.

1. EPS Barely Growing

Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

StoneX’s EPS grew at a weak 1.7% compounded annual growth rate over the last five years, lower than its 22.2% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

StoneX Trailing 12-Month EPS (GAAP)

2. Substandard TBVPS Growth Indicates Limited Asset Expansion

We consider tangible book value per share (TBVPS) an important metric for financial firms. TBVPS represents the real, liquid net worth per share of a company, excluding intangible assets that have debatable value upon liquidation.

Although StoneX’s TBVPS increased by 16.5% annually over the last five years, growth has recently decelerated to a mediocre 6.6% over the past two years (from $29.68 to $33.75 per share).

StoneX Quarterly Tangible Book Value per Share

The debt-to-equity ratio is a widely used measure to assess a company’s balance sheet health. A higher ratio means that a business aggressively financed its growth with debt. This can result in higher earnings (if the borrowed funds are invested profitably) but also increases risk.

If debt levels are too high, there could be difficulties in meeting obligations, especially during economic downturns or periods of rising interest rates if the debt has variable-rate payments.

StoneX Quarterly Debt-to-Equity Ratio

StoneX currently has $20.18 billion of debt and $2.52 billion of shareholder’s equity on its balance sheet, and over the past four quarters, has averaged a debt-to-equity ratio of 7.8×. We think this is dangerous - for a financials business, anything above 3.5× raises red flags.

Final Judgment

StoneX isn’t a terrible business, but it isn’t one of our picks. With its shares beating the market recently, the stock trades at 2.3× forward P/E (or $129.54 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re pretty confident there are superior stocks to buy right now. We’d suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce.

Story Continues  

Stocks We Would Buy Instead of StoneX

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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