DLOCAL LTD (DLO) Stock Fundamental Analysis
USA - NASDAQ:DLO - KYG290181018 - Common Stock
15.38 USD
+0.25 (+1.65%)
15.78 USD
+0.4 (+2.6%)
We assign a fundamental rating of 7 out of 10 to DLO. DLO was compared to 99 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making DLO a very profitable company, without any liquidiy or solvency issues. DLO is growing strongly while it is still valued neutral. This is a good combination! With these ratings, DLO could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
DLO had positive earnings in the past year.
DLO had a positive operating cash flow in the past year.
In the past 5 years DLO has always been profitable.
Of the past 5 years DLO 4 years had a positive operating cash flow.
1.2 Ratios
DLO has a better Return On Assets (11.95%) than 94.95% of its industry peers.
DLO's Return On Equity of 32.57% is amongst the best of the industry. DLO outperforms 92.93% of its industry peers.
The Return On Invested Capital of DLO (33.63%) is better than 97.98% 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 7.79%.
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
The Profit Margin of DLO (16.90%) is better than 70.71% of its industry peers.
In the last couple of years the Profit Margin of DLO has declined.
Looking at the Operating Margin, with a value of 21.70%, DLO is in the better half of the industry, outperforming 69.70% 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 57.58% 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
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.
Compared to 5 years ago, DLO has less shares outstanding
Compared to 1 year ago, DLO has an improved debt to assets ratio.
2.2 Solvency
DLO has an Altman-Z score of 5.53. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DLO (5.53) is better than 87.88% 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.
DLO's Debt to FCF ratio of 0.04 is amongst the best of the industry. DLO outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
The Debt to Equity ratio of DLO (0.01) is better than 86.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.53 |
ROIC/WACC3.87
WACC8.7%
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 64.65% 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.
DLO's Quick ratio of 1.46 is fine compared to the rest of the industry. DLO outperforms 65.66% 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.
DLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 51.16% yearly.
Looking at the last year, DLO shows a very strong growth in Revenue. 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
Based on estimates for the next years, DLO will show a very strong growth in Earnings Per Share. The EPS will grow by 38.29% on average per year.
Based on estimates for the next years, DLO will show a very strong growth in Revenue. The Revenue will grow by 28.01% on average per year.
EPS Next Y60.78%
EPS Next 2Y44.67%
EPS Next 3Y38.29%
EPS Next 5YN/A
Revenue Next Year36.46%
Revenue Next 2Y31.5%
Revenue Next 3Y28.01%
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
DLO is valuated quite expensively with a Price/Earnings ratio of 32.04.
65.66% of the companies in the same industry are cheaper than DLO, based on the Price/Earnings ratio.
DLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 18.37, the valuation of DLO can be described as rather expensive.
DLO's Price/Forward Earnings is on the same level as the industry average.
DLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 18.37 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as DLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.74 | ||
| EV/EBITDA | 17.91 |
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.
DLO's earnings are expected to grow with 38.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.63
EPS Next 2Y44.67%
EPS Next 3Y38.29%
5. Dividend
5.1 Amount
DLO has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.60, DLO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, DLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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 2Y44.67%
EPS Next 3Y38.29%
15.38
+0.25 (+1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners24.16%
Inst Owner Change0.99%
Ins Owners5.42%
Ins Owner ChangeN/A
Market Cap4.52B
Revenue(TTM)863.48M
Net Income(TTM)145.90M
Analysts73.85
Price Target14.79 (-3.84%)
Short Float %14.78%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)16.05%
Min EPS beat(2)7.59%
Max EPS beat(2)24.5%
EPS beat(4)2
Avg EPS beat(4)-3.39%
Min EPS beat(4)-32.38%
Max EPS beat(4)24.5%
EPS beat(8)3
Avg EPS beat(8)-3.4%
EPS beat(12)5
Avg EPS beat(12)-5.47%
EPS beat(16)7
Avg EPS beat(16)-3.71%
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)6.32%
PT rev (3m)13.92%
EPS NQ rev (1m)3.42%
EPS NQ rev (3m)17.69%
EPS NY rev (1m)1.39%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)2.65%
Revenue NQ rev (3m)7.39%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)5.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 18.37 | ||
| P/S | 5.23 | ||
| P/FCF | 49.74 | ||
| P/OCF | 38.18 | ||
| P/B | 10.08 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)0.48
EY3.12%
EPS(NY)0.84
Fwd EY5.44%
FCF(TTM)0.31
FCFY2.01%
OCF(TTM)0.4
OCFY2.62%
SpS2.94
BVpS1.53
TBVpS1.29
PEG (NY)0.53
PEG (5Y)0.63
Graham Number4.06
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 5.53 |
F-Score7
WACC8.7%
ROIC/WACC3.87
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 Y60.78%
EPS Next 2Y44.67%
EPS Next 3Y38.29%
EPS Next 5YN/A
Revenue 1Y (TTM)22.02%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%49.73%
Revenue Next Year36.46%
Revenue Next 2Y31.5%
Revenue Next 3Y28.01%
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
DLOCAL LTD / DLO FAQ
What is the fundamental rating for DLO stock?
ChartMill assigns a fundamental rating of 7 / 10 to DLO.
Can you provide the valuation status for DLOCAL LTD?
ChartMill assigns a valuation rating of 4 / 10 to DLOCAL LTD (DLO). This can be considered as Fairly Valued.
What is the profitability of DLO stock?
DLOCAL LTD (DLO) has a profitability rating of 7 / 10.
What is the valuation of DLOCAL LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DLOCAL LTD (DLO) is 32.04 and the Price/Book (PB) ratio is 10.08.
What is the earnings growth outlook for DLOCAL LTD?
The Earnings per Share (EPS) of DLOCAL LTD (DLO) is expected to grow by 60.78% in the next year.