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 101 industry peers in the Financial Services industry. DLO has only an average score on both its financial health and profitability. 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 investing!.
1. Profitability
1.1 Basic Checks
In the past year DLO was profitable.
DLO had a negative operating cash flow in the past year.
DLO had positive earnings in each of the past 5 years.
DLO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DLO has a better Return On Assets (10.28%) than 90.10% of its industry peers.
Looking at the Return On Equity, with a value of 24.63%, DLO belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
DLO has a Return On Invested Capital of 23.31%. This is amongst the best in the industry. DLO outperforms 95.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLO is significantly above the industry average of 11.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 24.63% | ||
| ROIC | 23.31% |
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
The Profit Margin of DLO (16.14%) is better than 66.34% of its industry peers.
In the last couple of years the Profit Margin of DLO has declined.
DLO has a Operating Margin of 18.89%. This is in the better half of the industry: DLO outperforms 62.38% of its industry peers.
In the last couple of years the Operating Margin of DLO has declined.
The Gross Margin of DLO (39.50%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.89% | ||
| PM (TTM) | 16.14% | ||
| GM | 39.5% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLO is still creating some value.
DLO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DLO has been reduced compared to 5 years 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 4.22. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
DLO's Altman-Z score of 4.22 is amongst the best of the industry. DLO outperforms 91.09% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
DLO's Debt to Equity ratio of 0.01 is amongst the best of the industry. DLO outperforms 90.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.22 |
ROIC/WACC1.45
WACC16.08%
2.3 Liquidity
A Current Ratio of 1.58 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a Current ratio of 1.58. This is in the better half of the industry: DLO outperforms 70.30% of its industry peers.
DLO has a Quick Ratio of 1.58. 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 Quick ratio of 1.58. This is in the better half of the industry: DLO outperforms 72.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for DLO have decreased strongly by -24.53% in the last year.
The Earnings Per Share has been growing by 51.16% on average over the past years. This is a very strong growth
DLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.70%.
The Revenue has been growing by 68.27% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-24.53%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%8.77%
3.2 Future
The Earnings Per Share is expected to grow by 32.17% on average over the next years. This is a very strong growth
DLO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.13% yearly.
EPS Next Y45.08%
EPS Next 2Y41.61%
EPS Next 3Y32.17%
EPS Next 5YN/A
Revenue Next Year28.14%
Revenue Next 2Y27.42%
Revenue Next 3Y25.13%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 22.32 indicates a rather expensive valuation of DLO.
DLO's Price/Earnings ratio is a bit more expensive when compared to the industry. DLO is more expensive than 60.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.33, DLO is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.39 indicates a correct valuation of DLO.
DLO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.37. DLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLO indicates a somewhat cheap valuation: DLO is cheaper than 65.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
The 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 32.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.44
EPS Next 2Y41.61%
EPS Next 3Y32.17%
5. Dividend
5.1 Amount
DLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.93
+0.24 (+2.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners28.21%
Inst Owner Change0.06%
Ins Owners2.6%
Ins Owner ChangeN/A
Market Cap2.54B
Analysts69.23
Price Target11.79 (32.03%)
Short Float %12.88%
Short Ratio6.57
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)0
Avg EPS beat(2)-22.83%
Min EPS beat(2)-32.38%
Max EPS beat(2)-13.28%
EPS beat(4)1
Avg EPS beat(4)-9.19%
Min EPS beat(4)-48.45%
Max EPS beat(4)57.36%
EPS beat(8)3
Avg EPS beat(8)-5.47%
EPS beat(12)4
Avg EPS beat(12)-8.44%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.27%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)1.36%
Revenue beat(4)1
Avg Revenue beat(4)-5.64%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)1.36%
Revenue beat(8)4
Avg Revenue beat(8)-1.12%
Revenue beat(12)7
Avg Revenue beat(12)-0.33%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.78%
PT rev (3m)9.54%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 15.39 | ||
| P/S | 3.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.2 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | 11.34 |
EPS(TTM)0.4
EY4.48%
EPS(NY)0.58
Fwd EY6.5%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)-0.12
OCFYN/A
SpS2.62
BVpS1.72
TBVpS1.49
PEG (NY)0.5
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 24.63% | ||
| ROCE | 28.55% | ||
| ROIC | 23.31% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.89% | ||
| PM (TTM) | 16.14% | ||
| GM | 39.5% | ||
| FCFM | N/A |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 130.19% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 50.66 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 4.22 |
F-Score4
WACC16.08%
ROIC/WACC1.45
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)-24.53%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%-28.57%
EPS Next Y45.08%
EPS Next 2Y41.61%
EPS Next 3Y32.17%
EPS Next 5YN/A
Revenue 1Y (TTM)14.7%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%8.77%
Revenue Next Year28.14%
Revenue Next 2Y27.42%
Revenue Next 3Y25.13%
Revenue Next 5YN/A
EBIT growth 1Y-20.16%
EBIT growth 3Y18.89%
EBIT growth 5Y50.31%
EBIT Next Year57.31%
EBIT Next 3Y30.82%
EBIT Next 5YN/A
FCF growth 1Y-120.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-111.17%
OCF growth 3YN/A
OCF growth 5YN/A