DLOCAL LTD (DLO) Stock Fundamental Analysis
NASDAQ:DLO - Nasdaq - KYG290181018 - Common Stock - Currency: USD
DLO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the profitability and the financial health of DLO get a neutral evaluation. Nothing too spectacular is happening here. DLO is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes DLO very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DLO had positive earnings in the past year.
In the past year DLO has reported a negative cash flow from operations.
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's Return On Assets of 10.28% is amongst the best of the industry. DLO outperforms 89.11% 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 84.16% of the companies in the same industry.
The Return On Invested Capital of DLO (23.31%) is better than 96.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLO is significantly above the industry average of 7.51%.
| 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
DLO has a better Profit Margin (16.14%) than 64.36% 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 64.36% of its industry peers.
In the last couple of years the Operating Margin of DLO has declined.
DLO's Gross Margin of 39.50% is in line compared to the rest of the industry. DLO outperforms 58.42% of its industry peers.
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
DLO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
2.2 Solvency
DLO has an Altman-Z score of 4.31. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.31, DLO belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
The Debt to Equity ratio of DLO (0.01) is better than 89.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.31 |
ROIC/WACC1.46
WACC15.98%
2.3 Liquidity
DLO has a Current 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.
The Current ratio of DLO (1.58) is better than 69.31% of its industry peers.
A Quick Ratio of 1.58 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a Quick ratio of 1.58. This is in the better half of the industry: DLO outperforms 71.29% 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 -15.09% 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
Looking at the last year, DLO shows a quite strong growth in Revenue. The Revenue has grown by 14.70% in the last year.
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)-15.09%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%7.14%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%8.77%
3.2 Future
DLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.33% yearly.
The Revenue is expected to grow by 24.79% on average over the next years. This is a very strong growth
EPS Next Y32.56%
EPS Next 2Y36.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year27.48%
Revenue Next 2Y26.59%
Revenue Next 3Y24.79%
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 rather expensively with a Price/Earnings ratio of 20.13.
The rest of the industry has a similar Price/Earnings ratio as DLO.
DLO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 15.19, the valuation of DLO can be described as correct.
DLO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLO is valued a bit cheaper than 66.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12 |
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 36.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)0.39
EPS Next 2Y36.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.06
-0.19 (-2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners28.21%
Inst Owner Change-0.83%
Ins Owners2.6%
Ins Owner ChangeN/A
Market Cap2.58B
Analysts69.23
Price Target11.48 (26.71%)
Short Float %15.98%
Short Ratio8.2
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)1
Avg EPS beat(2)-5.93%
Min EPS beat(2)-13.28%
Max EPS beat(2)1.42%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-48.45%
Max EPS beat(4)57.36%
EPS beat(8)4
Avg EPS beat(8)-1.24%
EPS beat(12)5
Avg EPS beat(12)-5.62%
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)-1.9%
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)5.47%
PT rev (3m)8.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.54%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 15.19 | ||
| P/S | 3.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.28 | ||
| P/tB | 6.06 | ||
| EV/EBITDA | 12 |
EPS(TTM)0.45
EY4.97%
EPS(NY)0.6
Fwd EY6.58%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)-0.12
OCFYN/A
SpS2.62
BVpS1.72
TBVpS1.49
PEG (NY)0.62
PEG (5Y)0.39
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 | 4.31 |
F-Score4
WACC15.98%
ROIC/WACC1.46
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)-15.09%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%7.14%
EPS Next Y32.56%
EPS Next 2Y36.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.7%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%8.77%
Revenue Next Year27.48%
Revenue Next 2Y26.59%
Revenue Next 3Y24.79%
Revenue Next 5YN/A
EBIT growth 1Y-20.16%
EBIT growth 3Y18.89%
EBIT growth 5Y50.31%
EBIT Next Year54.16%
EBIT Next 3YN/A
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