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DLOCAL LTD (DLO) Stock Fundamental Analysis

NASDAQ:DLO - Nasdaq - KYG290181018 - Common Stock - Currency: USD

11.16  -0.03 (-0.27%)

After market: 11.18 +0.02 (+0.18%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to DLO. DLO was compared to 100 industry peers in the Financial Services industry. DLO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DLO is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make DLO a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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6

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.
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.
DLO Yearly Net Income VS EBIT VS OCF VS FCFDLO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

With an excellent Return On Assets value of 12.03%, DLO belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.40%, DLO belongs to the top of the industry, outperforming 89.00% of the companies in the same industry.
DLO has a better Return On Invested Capital (23.82%) than 95.00% of its industry peers.
DLO had an Average Return On Invested Capital over the past 3 years of 27.22%. This is significantly above the industry average of 11.84%.
Industry RankSector Rank
ROA 12.03%
ROE 27.4%
ROIC 23.82%
ROA(3y)12.39%
ROA(5y)12.92%
ROE(3y)28.19%
ROE(5y)34.98%
ROIC(3y)27.22%
ROIC(5y)31.92%
DLO Yearly ROA, ROE, ROICDLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

DLO has a Profit Margin of 19.19%. This is in the better half of the industry: DLO outperforms 75.00% of its industry peers.
DLO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 20.61%, DLO is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
DLO's Operating Margin has declined in the last couple of years.
The Gross Margin of DLO (40.68%) is comparable to the rest of the industry.
DLO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 20.61%
PM (TTM) 19.19%
GM 40.68%
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%
DLO Yearly Profit, Operating, Gross MarginsDLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 20 40 60

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DLO is creating value.
The number of shares outstanding for DLO has been reduced compared to 1 year ago.
The number of shares outstanding for DLO has been reduced compared to 5 years ago.
Compared to 1 year ago, DLO has an improved debt to assets ratio.
DLO Yearly Shares OutstandingDLO Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
DLO Yearly Total Debt VS Total AssetsDLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

DLO has an Altman-Z score of 4.86. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.86, DLO belongs to the best of the industry, outperforming 89.00% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, DLO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 4.86
ROIC/WACC2.65
WACC8.99%
DLO Yearly LT Debt VS Equity VS FCFDLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 1.65 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a better Current ratio (1.65) than 70.00% of its industry peers.
DLO has a Quick Ratio of 1.65. This is a normal value and indicates that DLO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.65, DLO is doing good in the industry, outperforming 72.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.65
DLO Yearly Current Assets VS Current LiabilitesDLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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8

3. Growth

3.1 Past

DLO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.08%.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.59%.
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)2.08%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%150%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%17.53%

3.2 Future

The Earnings Per Share is expected to grow by 36.16% on average over the next years. This is a very strong growth
Based on estimates for the next years, DLO will show a very strong growth in Revenue. The Revenue will grow by 26.35% on average per year.
EPS Next Y53.39%
EPS Next 2Y40.1%
EPS Next 3Y36.16%
EPS Next 5YN/A
Revenue Next Year28.83%
Revenue Next 2Y27.68%
Revenue Next 3Y26.35%
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.
DLO Yearly Revenue VS EstimatesDLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
DLO Yearly EPS VS EstimatesDLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

DLO is valuated rather expensively with a Price/Earnings ratio of 22.78.
64.00% of the companies in the same industry are cheaper than DLO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DLO to the average of the S&P500 Index (27.28), we can say DLO is valued inline with the index average.
The Price/Forward Earnings ratio is 14.21, which indicates a correct valuation of DLO.
The rest of the industry has a similar Price/Forward Earnings ratio as DLO.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DLO is valued a bit cheaper.
Industry RankSector Rank
PE 22.78
Fwd PE 14.21
DLO Price Earnings VS Forward Price EarningsDLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.53
DLO Per share dataDLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2 2.5

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.
The decent profitability rating of DLO may justify a higher PE ratio.
DLO's earnings are expected to grow with 36.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.45
EPS Next 2Y40.1%
EPS Next 3Y36.16%

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4

5. Dividend

5.1 Amount

DLO has a Yearly Dividend Yield of 4.57%, which is a nice return.
DLO's Dividend Yield is rather good when compared to the industry average which is at 4.97. DLO pays more dividend than 84.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DLO pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.57%

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
DLO Yearly Dividends per shareDLO Yearly Dividends per shareYearly Dividends per share 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

DPN/A
EPS Next 2Y40.1%
EPS Next 3Y36.16%
DLO Yearly Income VS Free CF VS DividendDLO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 0 100M 200M

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DLOCAL LTD

NASDAQ:DLO (7/2/2025, 8:00:00 PM)

After market: 11.18 +0.02 (+0.18%)

11.16

-0.03 (-0.27%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-12 2025-08-12/amc
Inst Owners20.67%
Inst Owner Change-7.74%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap3.19B
Analysts71.43
Price Target12.48 (11.83%)
Short Float %18.61%
Short Ratio9.98
Dividend
Industry RankSector Rank
Dividend Yield 4.57%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date05-27 2025-05-27 (0.5251)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.94%
Min EPS beat(2)-32.38%
Max EPS beat(2)24.5%
EPS beat(4)2
Avg EPS beat(4)9.05%
Min EPS beat(4)-32.38%
Max EPS beat(4)57.36%
EPS beat(8)3
Avg EPS beat(8)-2.51%
EPS beat(12)5
Avg EPS beat(12)-5.97%
EPS beat(16)7
Avg EPS beat(16)-1.48%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)2.16%
Revenue beat(4)2
Avg Revenue beat(4)-4.13%
Min Revenue beat(4)-18.13%
Max Revenue beat(4)2.16%
Revenue beat(8)4
Avg Revenue beat(8)-1.14%
Revenue beat(12)7
Avg Revenue beat(12)-0.53%
Revenue beat(16)11
Avg Revenue beat(16)3.03%
PT rev (1m)9.35%
PT rev (3m)5.8%
EPS NQ rev (1m)-3.44%
EPS NQ rev (3m)8.08%
EPS NY rev (1m)3.53%
EPS NY rev (3m)5.63%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)1.05%
Valuation
Industry RankSector Rank
PE 22.78
Fwd PE 14.21
P/S 4.09
P/FCF N/A
P/OCF 140.6
P/B 5.84
P/tB 6.64
EV/EBITDA 13.53
EPS(TTM)0.49
EY4.39%
EPS(NY)0.79
Fwd EY7.04%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)0.08
OCFY0.71%
SpS2.73
BVpS1.91
TBVpS1.68
PEG (NY)0.43
PEG (5Y)0.45
Profitability
Industry RankSector Rank
ROA 12.03%
ROE 27.4%
ROCE 29.18%
ROIC 23.82%
ROICexc N/A
ROICexgc N/A
OM 20.61%
PM (TTM) 19.19%
GM 40.68%
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-Score7
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA 0.02
Cap/Depr 128.71%
Cap/Sales 3.13%
Interest Coverage 32.44
Cash Conversion 12.63%
Profit Quality N/A
Current Ratio 1.65
Quick Ratio 1.65
Altman-Z 4.86
F-Score7
WACC8.99%
ROIC/WACC2.65
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)2.08%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%150%
EPS Next Y53.39%
EPS Next 2Y40.1%
EPS Next 3Y36.16%
EPS Next 5YN/A
Revenue 1Y (TTM)11.59%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%17.53%
Revenue Next Year28.83%
Revenue Next 2Y27.68%
Revenue Next 3Y26.35%
Revenue Next 5YN/A
EBIT growth 1Y-2.07%
EBIT growth 3Y18.89%
EBIT growth 5Y50.31%
EBIT Next Year57.33%
EBIT Next 3Y36.52%
EBIT Next 5YN/A
FCF growth 1Y-101.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-86.11%
OCF growth 3YN/A
OCF growth 5YN/A