DLOCAL LTD (DLO) Stock Fundamental Analysis
USA - NASDAQ:DLO - KYG290181018 - Common Stock
13.73 USD
+0.11 (+0.81%)
13.7401 USD
+0.01 (+0.07%)
Overall DLO gets a fundamental rating of 7 out of 10. We evaluated DLO against 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! These ratings would make DLO suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DLO was profitable.
In the past year DLO had a positive cash flow from operations.
Each year in the past 5 years DLO has been profitable.
DLO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DLO's Return On Assets of 11.95% is amongst the best of the industry. DLO outperforms 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.
DLO had an Average Return On Invested Capital over the past 3 years of 27.22%. This is significantly above the industry average of 7.64%.
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
DLO's Profit Margin of 16.90% is fine compared to the rest of the industry. DLO outperforms 69.31% of its industry peers.
DLO's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 21.70%, DLO is doing good in the industry, outperforming 68.32% of the companies in the same industry.
In the last couple of years the Operating Margin of DLO has declined.
DLO has a Gross Margin (40.03%) which 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.
Compared to 1 year ago, DLO has less shares outstanding
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
An Altman-Z score of 5.10 indicates that DLO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.10, DLO belongs to the best of the industry, outperforming 89.11% 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 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 | 5.1 |
ROIC/WACC3.84
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.46 indicates that DLO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, DLO is doing good in the industry, outperforming 66.34% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that DLO should not have too much problems paying 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
The earnings per share for DLO have decreased by 0.00% in the last year.
Measured over the past years, DLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 51.16% on average per year.
DLO shows a strong growth in Revenue. In the last year, 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
DLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.05% yearly.
The Revenue is expected to grow by 29.97% on average over the next years. This is a very strong growth
EPS Next Y57.81%
EPS Next 2Y47.1%
EPS Next 3Y39.05%
EPS Next 5YN/A
Revenue Next Year37.25%
Revenue Next 2Y33.29%
Revenue Next 3Y29.97%
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.
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
The Price/Earnings ratio is 28.60, which means the current valuation is very expensive for DLO.
Based on the Price/Earnings ratio, DLO is valued a bit more expensive than the industry average as 65.35% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DLO is valued at the same level.
Based on the Price/Forward Earnings ratio of 15.86, the valuation of DLO can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as DLO.
When comparing the Price/Forward Earnings ratio of DLO to the average of the S&P500 Index (22.73), we can say DLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 15.86 |
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 60.40% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.16 | ||
| EV/EBITDA | 15.23 |
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)0.49
PEG (5Y)0.56
EPS Next 2Y47.1%
EPS Next 3Y39.05%
5. Dividend
5.1 Amount
DLO has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.86, DLO pays a bit more dividend than its industry peers.
DLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| 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%
13.73
+0.11 (+0.81%)
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 Cap4.03B
Analysts73.85
Price Target13.91 (1.31%)
Short Float %26.75%
Short Ratio7.73
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)7.14%
PT rev (3m)11.48%
EPS NQ rev (1m)13.79%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)4.17%
EPS NY rev (3m)6.51%
Revenue NQ rev (1m)6.21%
Revenue NQ rev (3m)7.97%
Revenue NY rev (1m)6.4%
Revenue NY rev (3m)6.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 15.86 | ||
| P/S | 4.54 | ||
| P/FCF | 43.16 | ||
| P/OCF | 33.13 | ||
| P/B | 8.75 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)0.48
EY3.5%
EPS(NY)0.87
Fwd EY6.3%
FCF(TTM)0.32
FCFY2.32%
OCF(TTM)0.41
OCFY3.02%
SpS3.02
BVpS1.57
TBVpS1.33
PEG (NY)0.49
PEG (5Y)0.56
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 | 5.1 |
F-Score7
WACC8.75%
ROIC/WACC3.84
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 Year37.25%
Revenue Next 2Y33.29%
Revenue Next 3Y29.97%
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