DLOCAL LTD (DLO)
KYG290181018 - Common Stock
We assign a fundamental rating of 7 out of 10 to DLO. DLO was compared to 102 industry peers in the Financial Services industry. DLO gets an excellent profitability rating and is at the same time showing great financial health properties. DLO is showing excellent growth while it is valued at reasonable prices. 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
In the past year DLO was profitable.
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 each of the past 5 years.
1.2 Ratios
DLO's Return On Assets of 13.73% is amongst the best of the industry. DLO outperforms 97.06% of its industry peers.
With an excellent Return On Equity value of 32.73%, DLO belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
DLO's Return On Invested Capital of 33.44% is amongst the best of the industry. DLO outperforms 98.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLO is significantly above the industry average of 7.90%.
The 3 year average ROIC (29.09%) for DLO is below the current ROIC(33.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.73% | ||
| ROE | 32.73% | ||
| ROIC | 33.44% |
ROA(3y)13.42%
ROA(5y)14.78%
ROE(3y)29.24%
ROE(5y)42.84%
ROIC(3y)29.09%
ROIC(5y)41.88%
1.3 Margins
DLO has a better Profit Margin (22.90%) than 77.45% 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 27.16%, DLO is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
In the last couple of years the Operating Margin of DLO has declined.
DLO has a better Gross Margin (42.57%) than 65.69% of its industry peers.
In the last couple of years the Gross Margin of DLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.16% | ||
| PM (TTM) | 22.9% | ||
| GM | 42.57% |
OM growth 3Y-2.09%
OM growth 5YN/A
PM growth 3Y-5.44%
PM growth 5YN/A
GM growth 3Y-9.66%
GM growth 5YN/A
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.
DLO has less shares outstanding than it did 1 year ago.
DLO has a better debt/assets ratio than last year.
2.2 Solvency
DLO has an Altman-Z score of 6.35. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DLO (6.35) is better than 92.16% of its industry peers.
The Debt to FCF ratio of DLO is 0.01, which is an excellent value as it means it would take DLO, only 0.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.01, DLO belongs to the best of the industry, outperforming 93.14% of the companies in the same industry.
DLO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.01, DLO belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.35 |
ROIC/WACC3.6
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.63 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a Current ratio of 1.63. This is in the better half of the industry: DLO outperforms 67.65% of its industry peers.
A Quick Ratio of 1.63 indicates that DLO should not have too much problems paying its short term obligations.
The Quick ratio of DLO (1.63) is better than 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
DLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.88%, which is quite impressive.
DLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.05% yearly.
Looking at the last year, DLO shows a very strong growth in Revenue. The Revenue has grown by 55.20%.
Measured over the past years, DLO shows a very strong growth in Revenue. The Revenue has been growing by 84.18% on average per year.
EPS 1Y (TTM)55.88%
EPS 3Y70.05%
EPS 5YN/A
EPS growth Q2Q133.33%
Revenue 1Y (TTM)55.2%
Revenue growth 3Y84.18%
Revenue growth 5YN/A
Revenue growth Q2Q58.79%
3.2 Future
DLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.57% yearly.
DLO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.00% yearly.
EPS Next Y13.49%
EPS Next 2Y27.39%
EPS Next 3Y30.57%
EPS Next 5YN/A
Revenue Next Year42.7%
Revenue Next 2Y37.59%
Revenue Next 3Y34%
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
Based on the Price/Earnings ratio of 27.45, the valuation of DLO can be described as expensive.
DLO's Price/Earnings ratio is in line with the industry average.
DLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.19, the valuation of DLO can be described as rather expensive.
DLO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DLO is more expensive than 64.71% of the companies in the same industry.
DLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 24.19 |
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.
64.71% of the companies in the same industry are more expensive than DLO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.65 | ||
| EV/EBITDA | 19.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DLO may justify a higher PE ratio.
DLO's earnings are expected to grow with 30.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)N/A
EPS Next 2Y27.39%
EPS Next 3Y30.57%
5. Dividend
5.1 Amount
No dividends for DLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DLOCAL LTD
NASDAQ:DLO (4/19/2024, 7:00:00 PM)
After market: 14.6 +0.05 (+0.34%)14.55
-0.65 (-4.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 24.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.73% | ||
| ROE | 32.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.16% | ||
| PM (TTM) | 22.9% | ||
| GM | 42.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)55.88%
EPS 3Y70.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)55.2%
Revenue growth 3Y84.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y