DLOCAL LTD (DLO) Stock Fundamental Analysis
USA - NASDAQ:DLO - KYG290181018 - Common Stock
14.17 USD
+0.09 (+0.64%)
14.18 USD
+0.01 (+0.07%)
Taking everything into account, DLO scores 7 out of 10 in our fundamental rating. DLO was compared to 98 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making DLO a very profitable company, without any liquidiy or solvency issues. DLO is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DLO could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
DLO had positive earnings in the past year.
DLO had a positive operating cash flow in the past year.
In the past 5 years DLO has always been profitable.
Of the past 5 years DLO 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.95%, DLO belongs to the best of the industry, outperforming 94.90% of the companies in the same industry.
With an excellent Return On Equity value of 32.57%, DLO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 33.63%, DLO belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
DLO had an Average Return On Invested Capital over the past 3 years of 27.22%. This is significantly above the industry average of 7.85%.
The 3 year average ROIC (27.22%) for DLO is below the current ROIC(33.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 32.57% | ||
| ROIC | 33.63% |
ROA(3y)12.39%
ROA(5y)12.92%
ROE(3y)28.19%
ROE(5y)34.98%
ROIC(3y)27.22%
ROIC(5y)31.92%
1.3 Margins
DLO has a better Profit Margin (16.90%) than 69.39% of its industry peers.
In the last couple of years the Profit Margin of DLO has declined.
With a decent Operating Margin value of 21.70%, DLO is doing good in the industry, outperforming 69.39% of the companies in the same industry.
DLO's Operating Margin has declined in the last couple of years.
The Gross Margin of DLO (40.03%) 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 | 21.7% | ||
| PM (TTM) | 16.9% | ||
| GM | 40.03% |
OM growth 3Y-18.07%
OM growth 5Y-10.68%
PM growth 3Y-20.31%
PM growth 5Y-10.57%
GM growth 3Y-9.58%
GM growth 5Y-9.45%
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.
The number of shares outstanding for DLO has been reduced compared to 1 year ago.
DLO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.29 indicates that DLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.29, DLO belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
DLO has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
DLO's Debt to FCF ratio of 0.04 is amongst the best of the industry. DLO outperforms 90.82% 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.
DLO's Debt to Equity ratio of 0.01 is amongst the best of the industry. DLO outperforms 86.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.29 |
ROIC/WACC3.83
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.46 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a Current ratio of 1.46. This is in the better half of the industry: DLO outperforms 67.35% of its industry peers.
DLO has a Quick Ratio of 1.46. This is a normal value and indicates that DLO is financially healthy and should not expect problems in meeting its short term obligations.
DLO has a better Quick ratio (1.46) than 68.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
DLO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
DLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 51.16% yearly.
DLO shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.02%.
Measured over the past years, DLO shows a very strong growth in Revenue. The Revenue has been growing by 68.27% on average per year.
EPS 1Y (TTM)0%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%-6.67%
Revenue 1Y (TTM)22.02%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%49.73%
3.2 Future
DLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.29% yearly.
Based on estimates for the next years, DLO will show a very strong growth in Revenue. The Revenue will grow by 28.01% on average per year.
EPS Next Y60.78%
EPS Next 2Y44.67%
EPS Next 3Y38.29%
EPS Next 5YN/A
Revenue Next Year36.46%
Revenue Next 2Y31.5%
Revenue Next 3Y28.01%
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
The Price/Earnings ratio is 29.52, which means the current valuation is very expensive for DLO.
Compared to the rest of the industry, the Price/Earnings ratio of DLO indicates a slightly more expensive valuation: DLO is more expensive than 68.37% of the companies listed in the same industry.
DLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
DLO is valuated correctly with a Price/Forward Earnings ratio of 16.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, DLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.52 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
DLO's Enterprise Value to EBITDA ratio is in line with the industry average.
DLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.83 | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
DLO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DLO has a very decent profitability rating, which may justify a higher PE ratio.
DLO's earnings are expected to grow with 38.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)0.58
EPS Next 2Y44.67%
EPS Next 3Y38.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, DLO has a reasonable but not impressive dividend return.
DLO's Dividend Yield is a higher than the industry average which is at 4.91.
Compared to an average S&P500 Dividend Yield of 2.39, DLO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
DLO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y44.67%
EPS Next 3Y38.29%
14.17
+0.09 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners24.16%
Inst Owner Change1.37%
Ins Owners5.42%
Ins Owner ChangeN/A
Market Cap4.16B
Revenue(TTM)863.48M
Net Income(TTM)145.90M
Analysts73.85
Price Target16.7 (17.85%)
Short Float %14.78%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.05%
Min EPS beat(2)7.59%
Max EPS beat(2)24.5%
EPS beat(4)2
Avg EPS beat(4)-3.39%
Min EPS beat(4)-32.38%
Max EPS beat(4)24.5%
EPS beat(8)3
Avg EPS beat(8)-3.4%
EPS beat(12)5
Avg EPS beat(12)-5.47%
EPS beat(16)7
Avg EPS beat(16)-3.71%
Revenue beat(2)2
Avg Revenue beat(2)6.36%
Min Revenue beat(2)2.16%
Max Revenue beat(2)10.57%
Revenue beat(4)3
Avg Revenue beat(4)3.05%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)10.57%
Revenue beat(8)4
Avg Revenue beat(8)-0.67%
Revenue beat(12)7
Avg Revenue beat(12)0.21%
Revenue beat(16)11
Avg Revenue beat(16)0.93%
PT rev (1m)20.07%
PT rev (3m)28.65%
EPS NQ rev (1m)1.81%
EPS NQ rev (3m)17.69%
EPS NY rev (1m)1.39%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)8.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.52 | ||
| Fwd PE | 16.93 | ||
| P/S | 4.82 | ||
| P/FCF | 45.83 | ||
| P/OCF | 35.18 | ||
| P/B | 9.29 | ||
| P/tB | 10.96 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)0.48
EY3.39%
EPS(NY)0.84
Fwd EY5.91%
FCF(TTM)0.31
FCFY2.18%
OCF(TTM)0.4
OCFY2.84%
SpS2.94
BVpS1.53
TBVpS1.29
PEG (NY)0.49
PEG (5Y)0.58
Graham Number4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 32.57% | ||
| ROCE | 41.2% | ||
| ROIC | 33.63% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 21.7% | ||
| PM (TTM) | 16.9% | ||
| GM | 40.03% | ||
| FCFM | 10.52% |
ROA(3y)12.39%
ROA(5y)12.92%
ROE(3y)28.19%
ROE(5y)34.98%
ROIC(3y)27.22%
ROIC(5y)31.92%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.34%
ROCE(5y)39.2%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-18.07%
OM growth 5Y-10.68%
PM growth 3Y-20.31%
PM growth 5Y-10.57%
GM growth 3Y-9.58%
GM growth 5Y-9.45%
F-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 135.01% | ||
| Cap/Sales | 3.19% | ||
| Interest Coverage | 21.34 | ||
| Cash Conversion | 56.96% | ||
| Profit Quality | 62.24% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 5.29 |
F-Score7
WACC8.79%
ROIC/WACC3.83
Cap/Depr(3y)143.63%
Cap/Depr(5y)366.75%
Cap/Sales(3y)2.93%
Cap/Sales(5y)6.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%-6.67%
EPS Next Y60.78%
EPS Next 2Y44.67%
EPS Next 3Y38.29%
EPS Next 5YN/A
Revenue 1Y (TTM)22.02%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%49.73%
Revenue Next Year36.46%
Revenue Next 2Y31.5%
Revenue Next 3Y28.01%
Revenue Next 5YN/A
EBIT growth 1Y28.01%
EBIT growth 3Y18.89%
EBIT growth 5Y50.31%
EBIT Next Year74.32%
EBIT Next 3Y39.37%
EBIT Next 5YN/A
FCF growth 1Y-64.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.01%
OCF growth 3YN/A
OCF growth 5YN/A
DLOCAL LTD / DLO FAQ
What is the fundamental rating for DLO stock?
ChartMill assigns a fundamental rating of 7 / 10 to DLO.
Can you provide the valuation status for DLOCAL LTD?
ChartMill assigns a valuation rating of 5 / 10 to DLOCAL LTD (DLO). This can be considered as Fairly Valued.
What is the profitability of DLO stock?
DLOCAL LTD (DLO) has a profitability rating of 7 / 10.
What is the valuation of DLOCAL LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DLOCAL LTD (DLO) is 29.52 and the Price/Book (PB) ratio is 9.29.
What is the earnings growth outlook for DLOCAL LTD?
The Earnings per Share (EPS) of DLOCAL LTD (DLO) is expected to grow by 60.78% in the next year.