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DLOCAL LTD (DLO) Stock Fundamental Analysis

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

10.94  -0.24 (-2.15%)

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. While DLO has a great health rating, its profitability is only average at the moment. DLO is growing strongly while it is still valued neutral. This is a good combination! 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

In the past year DLO was profitable.
In the past year DLO had a positive cash flow from operations.
In the past 5 years DLO has always been profitable.
Of the past 5 years DLO 4 years had a positive operating cash flow.
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

DLO's Return On Assets of 12.03% is amongst the best of the industry. DLO outperforms 95.00% of its industry peers.
With an excellent Return On Equity value of 27.40%, DLO belongs to the best of the industry, outperforming 89.00% of the companies in the same industry.
DLO's Return On Invested Capital of 23.82% is amongst the best of the industry. DLO outperforms 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

With a decent Profit Margin value of 19.19%, DLO is doing good in the industry, outperforming 75.00% of the companies in the same industry.
DLO's Profit Margin has declined in the last couple of years.
DLO's Operating Margin of 20.61% is fine compared to the rest of the industry. DLO outperforms 68.00% of its industry peers.
DLO's Operating Margin has declined in the last couple of years.
DLO has a Gross Margin (40.68%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DLO has declined.
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

DLO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DLO has been reduced compared to 1 year ago.
Compared to 5 years ago, DLO has less shares outstanding
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

An Altman-Z score of 4.87 indicates that DLO is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLO (4.87) is better than 89.00% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
DLO has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. DLO outperforms 90.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 4.87
ROIC/WACC2.63
WACC9.05%
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.
With a decent Current ratio value of 1.65, DLO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that DLO should not have too much problems paying its short term obligations.
DLO has a Quick ratio of 1.65. This is in the better half of the industry: DLO outperforms 72.00% of its industry peers.
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%.
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 11.59% in the last year.
DLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 68.27% yearly.
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 Y51.5%
EPS Next 2Y40.71%
EPS Next 3Y36.16%
EPS Next 5YN/A
Revenue Next Year29%
Revenue Next 2Y27.78%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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 22.33.
Compared to the rest of the industry, the Price/Earnings ratio of DLO indicates a slightly more expensive valuation: DLO is more expensive than 63.00% 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 27.69.
The Price/Forward Earnings ratio is 13.81, which indicates a correct valuation of DLO.
DLO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DLO to the average of the S&P500 Index (37.36), we can say DLO is valued rather cheaply.
Industry RankSector Rank
PE 22.33
Fwd PE 13.81
DLO Price Earnings VS Forward Price EarningsDLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 13.57
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

The 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.
A more expensive valuation may be justified as DLO's earnings are expected to grow with 36.16% in the coming years.
PEG (NY)0.43
PEG (5Y)0.44
EPS Next 2Y40.71%
EPS Next 3Y36.16%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.83%, DLO is a good candidate for dividend investing.
DLO's Dividend Yield is rather good when compared to the industry average which is at 5.06. DLO pays more dividend than 81.00% of the companies in the same industry.
DLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 4.83%

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
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 2Y40.71%
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 (7/24/2025, 11:27:06 AM)

10.94

-0.24 (-2.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-13 2025-08-13/amc
Inst Owners20.67%
Inst Owner Change0.02%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap3.12B
Analysts71.43
Price Target12.98 (18.65%)
Short Float %24.31%
Short Ratio11.93
Dividend
Industry RankSector Rank
Dividend Yield 4.83%
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)4.05%
PT rev (3m)10.09%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)4.43%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 22.33
Fwd PE 13.81
P/S 4.01
P/FCF N/A
P/OCF 137.83
P/B 5.73
P/tB 6.51
EV/EBITDA 13.57
EPS(TTM)0.49
EY4.48%
EPS(NY)0.79
Fwd EY7.24%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)0.08
OCFY0.73%
SpS2.73
BVpS1.91
TBVpS1.68
PEG (NY)0.43
PEG (5Y)0.44
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 4.87
F-Score7
WACC9.05%
ROIC/WACC2.63
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 Y51.5%
EPS Next 2Y40.71%
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 Year29%
Revenue Next 2Y27.78%
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