DLOCAL LTD (DLO) Stock Fundamental Analysis
NASDAQ:DLO - Nasdaq - KYG290181018 - Common Stock - Currency: USD
Taking everything into account, DLO scores 6 out of 10 in our fundamental rating. DLO was compared to 102 industry peers in the Financial Services industry. DLO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DLO is valued quite expensively, but it does show have an excellent growth rating. This makes DLO very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DLO was profitable.
In the past year DLO had a positive cash flow from operations.
Each year in the past 5 years DLO has been profitable.
Each year in the past 5 years DLO had a positive operating cash flow.
1.2 Ratios
DLO has a better Return On Assets (10.18%) than 89.22% of its industry peers.
The Return On Equity of DLO (26.10%) is better than 88.24% of its industry peers.
DLO has a better Return On Invested Capital (26.10%) than 97.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLO is significantly above the industry average of 7.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.18% | ||
| ROE | 26.1% | ||
| ROIC | 26.1% |
ROA(3y)13.42%
ROA(5y)14.78%
ROE(3y)29.24%
ROE(5y)42.86%
ROIC(3y)29.1%
ROIC(5y)41.93%
1.3 Margins
DLO's Profit Margin of 16.35% is fine compared to the rest of the industry. DLO outperforms 67.65% of its industry peers.
DLO's Profit Margin has declined in the last couple of years.
The Operating Margin of DLO (18.98%) is better than 65.69% of its industry peers.
In the last couple of years the Operating Margin of DLO has declined.
DLO has a Gross Margin (38.48%) which is comparable to the rest of the industry.
DLO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.98% | ||
| PM (TTM) | 16.35% | ||
| GM | 38.48% |
OM growth 3Y-2.11%
OM growth 5YN/A
PM growth 3Y-5.41%
PM growth 5YN/A
GM growth 3Y-9.63%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DLO is creating value.
The number of shares outstanding for DLO remains at a similar level compared to 1 year ago.
DLO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.08 indicates that DLO is not in any danger for bankruptcy at the moment.
DLO has a Altman-Z score of 5.08. This is amongst the best in the industry. DLO outperforms 89.22% of its industry peers.
DLO has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
DLO has a better Debt to FCF ratio (0.03) than 90.20% of its industry peers.
DLO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.01, DLO belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.84
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.54 indicates that DLO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.54, DLO is doing good in the industry, outperforming 67.65% of the companies in the same industry.
DLO has a Quick Ratio of 1.54. This is a normal value and indicates that DLO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DLO (1.54) is better than 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
DLO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.22%.
Measured over the past years, DLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 69.85% on average per year.
The Revenue has grown by 25.61% in the past year. This is a very strong growth!
The Revenue has been growing by 84.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-2.22%
EPS 3Y69.85%
EPS 5YN/A
EPS Q2Q%-30.77%
Revenue 1Y (TTM)25.61%
Revenue growth 3Y84.15%
Revenue growth 5YN/A
Sales Q2Q%13.33%
3.2 Future
The Earnings Per Share is expected to grow by 14.92% on average over the next years. This is quite good.
Based on estimates for the next years, DLO will show a very strong growth in Revenue. The Revenue will grow by 23.09% on average per year.
EPS Next Y-14.12%
EPS Next 2Y5.28%
EPS Next 3Y14.92%
EPS Next 5YN/A
Revenue Next Year17.32%
Revenue Next 2Y21.58%
Revenue Next 3Y23.09%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.91, DLO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DLO is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.47. DLO is around the same levels.
Based on the Price/Forward Earnings ratio of 22.40, the valuation of DLO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DLO is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
DLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 22.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DLO.
61.76% of the companies in the same industry are more expensive than DLO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.24 | ||
| EV/EBITDA | 18.9 |
4.3 Compensation for Growth
The decent profitability rating of DLO may justify a higher PE ratio.
DLO's earnings are expected to grow with 14.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.28%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
No dividends for DLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DLOCAL LTD
NASDAQ:DLO (2/4/2025, 8:00:01 PM)
After market: 13.16 0 (0%)13.16
+0.17 (+1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.32%
Inst Owner Change1.27%
Ins Owners2.6%
Ins Owner ChangeN/A
Market Cap3.75B
Analysts70
Price Target10.88 (-17.33%)
Short Float %16.44%
Short Ratio10.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)22.04%
Min EPS beat(2)-13.28%
Max EPS beat(2)57.36%
EPS beat(4)1
Avg EPS beat(4)-2.91%
Min EPS beat(4)-48.45%
Max EPS beat(4)57.36%
EPS beat(8)3
Avg EPS beat(8)-7.08%
EPS beat(12)5
Avg EPS beat(12)-4.68%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-8.38%
Min Revenue beat(2)-18.13%
Max Revenue beat(2)1.36%
Revenue beat(4)2
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)7.22%
Revenue beat(8)4
Avg Revenue beat(8)-1.12%
Revenue beat(12)8
Avg Revenue beat(12)-0.02%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.05%
PT rev (3m)6.67%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-9.67%
EPS NY rev (1m)0.12%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-17.89%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 22.4 | ||
| P/S | 5.14 | ||
| P/FCF | 25.24 | ||
| P/OCF | 22.08 | ||
| P/B | 8.2 | ||
| P/tB | 9.49 | ||
| EV/EBITDA | 18.9 |
EPS(TTM)0.44
EY3.34%
EPS(NY)0.59
Fwd EY4.46%
FCF(TTM)0.52
FCFY3.96%
OCF(TTM)0.6
OCFY4.53%
SpS2.56
BVpS1.6
TBVpS1.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.18% | ||
| ROE | 26.1% | ||
| ROCE | 30.02% | ||
| ROIC | 26.1% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.98% | ||
| PM (TTM) | 16.35% | ||
| GM | 38.48% | ||
| FCFM | 20.36% |
ROA(3y)13.42%
ROA(5y)14.78%
ROE(3y)29.24%
ROE(5y)42.86%
ROIC(3y)29.1%
ROIC(5y)41.93%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.65%
ROCE(5y)48.33%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.11%
OM growth 5YN/A
PM growth 3Y-5.41%
PM growth 5YN/A
GM growth 3Y-9.63%
GM growth 5YN/A
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 133% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.92% | ||
| Profit Quality | 124.56% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 5.08 |
F-Score6
WACC9.18%
ROIC/WACC2.84
Cap/Depr(3y)437.41%
Cap/Depr(5y)424.13%
Cap/Sales(3y)8.47%
Cap/Sales(5y)6.45%
Profit Quality(3y)131.05%
Profit Quality(5y)175.87%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.22%
EPS 3Y69.85%
EPS 5YN/A
EPS Q2Q%-30.77%
EPS Next Y-14.12%
EPS Next 2Y5.28%
EPS Next 3Y14.92%
EPS Next 5YN/A
Revenue 1Y (TTM)25.61%
Revenue growth 3Y84.15%
Revenue growth 5YN/A
Sales Q2Q%13.33%
Revenue Next Year17.32%
Revenue Next 2Y21.58%
Revenue Next 3Y23.09%
Revenue Next 5YN/A
EBIT growth 1Y-17.73%
EBIT growth 3Y80.26%
EBIT growth 5YN/A
EBIT Next Year-15.99%
EBIT Next 3Y14.74%
EBIT Next 5YN/A
FCF growth 1Y-33.63%
FCF growth 3Y48.17%
FCF growth 5YN/A
OCF growth 1Y-27.8%
OCF growth 3Y49.13%
OCF growth 5YN/A