DLOCAL LTD (DLO) Stock Fundamental Analysis
USA - NASDAQ:DLO - KYG290181018 - Common Stock
14.04 USD
+0.01 (+0.07%)
14.0044 USD
-0.04 (-0.25%)
DLO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 100 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make DLO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
DLO had positive earnings in the past year.
In the past year DLO had a positive cash flow from operations.
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's Return On Assets of 11.95% is amongst the best of the industry. DLO outperforms 95.00% of its industry peers.
DLO has a better Return On Equity (32.57%) than 93.00% of its industry peers.
The Return On Invested Capital of DLO (33.63%) is better than 98.00% 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 7.64%.
The 3 year average ROIC (27.22%) for DLO is below the current ROIC(33.63%), indicating increased profibility in the last year.
| 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 69.00% 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 68.00% of its industry peers.
In the last couple of years the Operating Margin of DLO has declined.
Looking at the Gross Margin, with a value of 40.03%, DLO is in line with its industry, outperforming 55.00% of the companies in the same 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DLO is creating 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.
DLO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.28 indicates that DLO is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLO (5.28) is better than 89.00% of its industry peers.
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 Debt to FCF ratio of 0.04. This is amongst the best in the industry. DLO outperforms 93.00% of its industry peers.
DLO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.01, DLO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.28 |
ROIC/WACC3.81
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.46 indicates that DLO should not have too much problems paying its short term obligations.
DLO's Current ratio of 1.46 is fine compared to the rest of the industry. DLO outperforms 65.00% 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.
DLO has a better Quick ratio (1.46) than 66.00% 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%.
The Earnings Per Share has been growing by 51.16% on average over the past years. This is a very strong growth
DLO shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.02%.
The Revenue has been growing by 68.27% on average over the past years. This is a very strong growth!
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 38.27% yearly.
The Revenue is expected to grow by 28.76% on average over the next years. This is a very strong growth
EPS Next Y58.57%
EPS Next 2Y44.41%
EPS Next 3Y38.27%
EPS Next 5YN/A
Revenue Next Year35.14%
Revenue Next 2Y31.7%
Revenue Next 3Y28.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.25, the valuation of DLO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DLO indicates a slightly more expensive valuation: DLO is more expensive than 66.00% of the companies listed in the same industry.
DLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 16.83, DLO is valued correctly.
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 (23.32), we can say DLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 16.83 |
4.2 Price Multiples
DLO's Enterprise Value to EBITDA ratio is in line with the industry average.
DLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.41 | ||
| EV/EBITDA | 16.35 |
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.
DLO's earnings are expected to grow with 38.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.57
EPS Next 2Y44.41%
EPS Next 3Y38.27%
5. Dividend
5.1 Amount
DLO has a Yearly Dividend Yield of 3.74%.
DLO's Dividend Yield is a higher than the industry average which is at 5.12.
Compared to an average S&P500 Dividend Yield of 2.41, DLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y44.41%
EPS Next 3Y38.27%
14.04
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners24.16%
Inst Owner Change5.83%
Ins Owners5.42%
Ins Owner ChangeN/A
Market Cap4.12B
Analysts73.85
Price Target14.79 (5.34%)
Short Float %15.26%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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)0%
PT rev (3m)11.48%
EPS NQ rev (1m)1.88%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0.48%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)4.05%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)4.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 16.83 | ||
| P/S | 4.78 | ||
| P/FCF | 45.41 | ||
| P/OCF | 34.85 | ||
| P/B | 9.21 | ||
| P/tB | 10.86 | ||
| EV/EBITDA | 16.35 |
EPS(TTM)0.48
EY3.42%
EPS(NY)0.83
Fwd EY5.94%
FCF(TTM)0.31
FCFY2.2%
OCF(TTM)0.4
OCFY2.87%
SpS2.94
BVpS1.53
TBVpS1.29
PEG (NY)0.5
PEG (5Y)0.57
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 | 5.28 |
F-Score7
WACC8.82%
ROIC/WACC3.81
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 Y58.57%
EPS Next 2Y44.41%
EPS Next 3Y38.27%
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 Year74.32%
EBIT Next 3Y39.37%
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