DLOCAL LTD (DLO) Stock Fundamental Analysis
NASDAQ:DLO - KYG290181018 - Common Stock
14.62 USD
+0.21 (+1.42%)
14.99 USD
+0.37 (+2.53%)
Overall DLO gets a fundamental rating of 7 out of 10. We evaluated DLO against 100 industry peers in the Financial Services industry. DLO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DLO is growing strongly while it is still valued neutral. This is a good combination! These ratings would make DLO suitable 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.
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 has a Return On Assets of 11.95%. This is amongst the best in the industry. DLO outperforms 95.00% of its industry peers.
Looking at the Return On Equity, with a value of 32.57%, DLO belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
DLO has a better Return On Invested Capital (33.63%) than 98.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLO is significantly above the industry average of 7.90%.
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
DLO's Profit Margin of 16.90% is fine compared to the rest of the industry. DLO outperforms 74.00% 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 68.00% of the companies in the same industry.
In the last couple of years the Operating Margin of DLO has declined.
With a Gross Margin value of 40.03%, DLO perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Gross Margin of DLO has declined.
| 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.
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.
The debt/assets ratio for DLO has been reduced compared to a year ago.
2.2 Solvency
DLO has an Altman-Z score of 5.28. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
DLO has a better Altman-Z score (5.28) than 90.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.04, DLO belongs to the top of the industry, outperforming 93.00% 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.
DLO has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. DLO outperforms 91.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.28 |
ROIC/WACC3.73
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.46 indicates that DLO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, DLO is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
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 68.00% 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.
The Revenue has grown by 22.02% in the past year. This is a very strong growth!
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)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
The Earnings Per Share is expected to grow by 39.05% on average over the next years. This is a very strong growth
DLO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.97% yearly.
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
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.
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
DLO is valuated quite expensively with a Price/Earnings ratio of 30.46.
DLO's Price/Earnings ratio is a bit more expensive when compared to the industry. DLO is more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. DLO is around the same levels.
With a Price/Forward Earnings ratio of 16.89, DLO is valued correctly.
Based on the Price/Forward Earnings ratio, DLO is valued a bit more expensive than 60.00% of the companies in the same industry.
DLO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 16.89 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.96 | ||
| EV/EBITDA | 16.32 |
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 39.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.6
EPS Next 2Y47.1%
EPS Next 3Y39.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, DLO has a reasonable but not impressive dividend return.
DLO's Dividend Yield is a higher than the industry average which is at 5.33.
Compared to an average S&P500 Dividend Yield of 2.36, DLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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 2Y47.1%
EPS Next 3Y39.05%
14.62
+0.21 (+1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners20.94%
Inst Owner Change5.8%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap4.17B
Analysts72.31
Price Target13.91 (-4.86%)
Short Float %24.59%
Short Ratio7.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)1.26%
PT rev (3m)10.73%
EPS NQ rev (1m)-7.71%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 16.89 | ||
| P/S | 4.83 | ||
| P/FCF | 45.96 | ||
| P/OCF | 35.28 | ||
| P/B | 9.32 | ||
| P/tB | 10.99 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)0.48
EY3.28%
EPS(NY)0.87
Fwd EY5.92%
FCF(TTM)0.32
FCFY2.18%
OCF(TTM)0.41
OCFY2.83%
SpS3.02
BVpS1.57
TBVpS1.33
PEG (NY)0.53
PEG (5Y)0.6
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
WACC9.02%
ROIC/WACC3.73
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