DLOCAL LTD (DLO)
KYG290181018 - Common Stock
Overall DLO gets a fundamental rating of 7 out of 10. We evaluated DLO against 100 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 shows excellent growth, but is valued quite expensive already. This makes DLO very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
DLO had positive earnings in the past year.
In the past year DLO had a positive cash flow from operations.
DLO had positive earnings in each of the past 5 years.
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 90.00% of its industry peers.
The Return On Equity of DLO (26.10%) is better than 90.00% of its industry peers.
DLO has a Return On Invested Capital of 26.10%. This is amongst the best in the industry. DLO outperforms 97.00% of its industry peers.
DLO had an Average Return On Invested Capital over the past 3 years of 29.10%. This is significantly above the industry average of 7.54%.
| 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
With a decent Profit Margin value of 16.35%, DLO is doing good in the industry, outperforming 67.00% of the companies in the same industry.
DLO's Profit Margin has declined in the last couple of years.
The Operating Margin of DLO (18.98%) is better than 64.00% of its industry peers.
In the last couple of years the Operating Margin of DLO has declined.
DLO has a Gross Margin of 38.48%. This is comparable to the rest of the industry: DLO outperforms 59.00% of its industry peers.
In the last couple of years the Gross Margin of DLO has declined.
| 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
DLO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DLO has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for DLO has been reduced compared to a year ago.
2.2 Solvency
DLO has an Altman-Z score of 4.52. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
DLO has a better Altman-Z score (4.52) than 90.00% of its industry peers.
The Debt to FCF ratio of DLO is 0.03, which is an excellent value as it means it would take DLO, only 0.03 years of fcf income to pay off all of its debts.
DLO has a better Debt to FCF ratio (0.03) than 90.00% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
DLO has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. DLO outperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 4.52 |
ROIC/WACC2.89
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.54 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a Current ratio of 1.54. This is in the better half of the industry: DLO outperforms 68.00% of its industry peers.
A Quick Ratio of 1.54 indicates that DLO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.54, DLO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
DLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.11%, which is quite good.
DLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 69.85% yearly.
The Revenue has grown by 25.61% in the past year. This is a very strong growth!
DLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 84.15% yearly.
EPS 1Y (TTM)11.11%
EPS 3Y69.85%
EPS 5YN/A
EPS Q2Q%15.38%
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 13.37% on average over the next years. This is quite good.
DLO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.13% yearly.
EPS Next Y-16.89%
EPS Next 2Y4.03%
EPS Next 3Y13.37%
EPS Next 5YN/A
Revenue Next Year17.02%
Revenue Next 2Y21.85%
Revenue Next 3Y23.13%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.63 indicates a rather expensive valuation of DLO.
Compared to the rest of the industry, the Price/Earnings ratio of DLO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.65. DLO is valued slightly cheaper when compared to this.
DLO is valuated rather expensively with a Price/Forward Earnings ratio of 18.86.
The rest of the industry has a similar Price/Forward Earnings ratio as DLO.
DLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
DLO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DLO is cheaper than 62.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.74 | ||
| EV/EBITDA | 14.56 |
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 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.03%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
No dividends for DLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DLOCAL LTD
NASDAQ:DLO (11/21/2024, 3:53:05 PM)
10.815
+0.17 (+1.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 18.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.18% | ||
| ROE | 26.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.98% | ||
| PM (TTM) | 16.35% | ||
| GM | 38.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.11%
EPS 3Y69.85%
EPS 5Y
EPS Q2Q%
EPS Next Y-16.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.61%
Revenue growth 3Y84.15%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y