DLOCAL LTD (DLO) Stock Fundamental Analysis
USA - NASDAQ:DLO - KYG290181018 - Common Stock
14.89 USD
+0.32 (+2.2%)
14.95 USD
+0.06 (+0.4%)
We assign a fundamental rating of 7 out of 10 to DLO. DLO was compared to 101 industry peers in the Financial Services industry. DLO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DLO is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
Each year in the past 5 years DLO has been profitable.
Of the past 5 years DLO 4 years had a positive operating cash flow.
1.2 Ratios
DLO has a better Return On Assets (11.95%) than 95.05% of its industry peers.
DLO has a better Return On Equity (32.57%) than 93.07% of its industry peers.
With an excellent Return On Invested Capital value of 33.63%, DLO belongs to the best of the industry, outperforming 98.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLO is significantly above the industry average of 7.65%.
The last Return On Invested Capital (33.63%) for DLO is above the 3 year average (27.22%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 16.90%, DLO is doing good in the industry, outperforming 69.31% of the companies in the same industry.
DLO's Profit Margin has declined in the last couple of years.
The Operating Margin of DLO (21.70%) is better than 68.32% of its industry peers.
DLO's Operating Margin has declined in the last couple of years.
DLO has a Gross Margin (40.03%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DLO has declined.
| 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.
Compared to 1 year ago, DLO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.40 indicates that DLO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.40, DLO belongs to the best of the industry, outperforming 89.11% of the companies in the same industry.
The Debt to FCF ratio of DLO is 0.04, which is an excellent value as it means it would take DLO, only 0.04 years of fcf income to pay off all of its debts.
DLO has a better Debt to FCF ratio (0.04) than 93.07% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
DLO has a better Debt to Equity ratio (0.01) than 90.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.4 |
ROIC/WACC3.85
WACC8.74%
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 better Current ratio (1.46) than 66.34% 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.
The Quick ratio of DLO (1.46) is better than 67.33% 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.
Looking at the last year, DLO shows a very strong growth in Revenue. The Revenue has grown by 22.02%.
DLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 68.27% yearly.
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
The Earnings Per Share is expected to grow by 39.05% 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 28.76% yearly.
EPS Next Y57.81%
EPS Next 2Y47.1%
EPS Next 3Y39.05%
EPS Next 5YN/A
Revenue Next Year35.14%
Revenue Next 2Y31.7%
Revenue Next 3Y28.76%
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.
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
DLO is valuated quite expensively with a Price/Earnings ratio of 31.02.
DLO's Price/Earnings ratio is a bit more expensive when compared to the industry. DLO is more expensive than 66.34% of the companies in the same industry.
DLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.20, DLO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DLO to the average of the S&P500 Index (22.88), we can say DLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
DLO's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.16 | ||
| EV/EBITDA | 17.11 |
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.
A more expensive valuation may be justified as DLO's earnings are expected to grow with 39.05% in the coming years.
PEG (NY)0.54
PEG (5Y)0.61
EPS Next 2Y47.1%
EPS Next 3Y39.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, DLO has a reasonable but not impressive dividend return.
DLO's Dividend Yield is rather good when compared to the industry average which is at 4.86. DLO pays more dividend than 81.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, DLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
DLO is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y47.1%
EPS Next 3Y39.05%
14.89
+0.32 (+2.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners20.94%
Inst Owner Change5.83%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap4.37B
Analysts73.85
Price Target13.91 (-6.58%)
Short Float %16.19%
Short Ratio6.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)16.99%
Min EPS beat(2)9.49%
Max EPS beat(2)24.5%
EPS beat(4)2
Avg EPS beat(4)-2.92%
Min EPS beat(4)-32.38%
Max EPS beat(4)24.5%
EPS beat(8)3
Avg EPS beat(8)-3.16%
EPS beat(12)5
Avg EPS beat(12)-5.31%
EPS beat(16)7
Avg EPS beat(16)-3.59%
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)10.09%
PT rev (3m)11.48%
EPS NQ rev (1m)13.79%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)4.17%
EPS NY rev (3m)6.51%
Revenue NQ rev (1m)6.21%
Revenue NQ rev (3m)4.05%
Revenue NY rev (1m)4.76%
Revenue NY rev (3m)4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 17.2 | ||
| P/S | 5.06 | ||
| P/FCF | 48.16 | ||
| P/OCF | 36.96 | ||
| P/B | 9.76 | ||
| P/tB | 11.51 | ||
| EV/EBITDA | 17.11 |
EPS(TTM)0.48
EY3.22%
EPS(NY)0.87
Fwd EY5.81%
FCF(TTM)0.31
FCFY2.08%
OCF(TTM)0.4
OCFY2.71%
SpS2.94
BVpS1.53
TBVpS1.29
PEG (NY)0.54
PEG (5Y)0.61
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%
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-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 | 5.4 |
F-Score7
WACC8.74%
ROIC/WACC3.85
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 Y57.81%
EPS Next 2Y47.1%
EPS Next 3Y39.05%
EPS Next 5YN/A
Revenue 1Y (TTM)22.02%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%49.73%
Revenue Next Year35.14%
Revenue Next 2Y31.7%
Revenue Next 3Y28.76%
Revenue Next 5YN/A
EBIT growth 1Y28.01%
EBIT growth 3Y18.89%
EBIT growth 5Y50.31%
EBIT Next Year51.88%
EBIT Next 3Y34.33%
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