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DLOCAL LTD (DLO) Stock Fundamental Analysis

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

10.26  -0.14 (-1.35%)

Premarket: 10.04 -0.22 (-2.14%)

Fundamental Rating

6

Taking everything into account, DLO scores 6 out of 10 in our fundamental rating. DLO was compared to 101 industry peers in the Financial Services industry. DLO scores excellent on profitability, but there are some minor concerns on its financial health. DLO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes DLO very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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7

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 4 of the past 5 years.
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

With an excellent Return On Assets value of 12.03%, DLO belongs to the best of the industry, outperforming 95.05% of the companies in the same industry.
DLO's Return On Equity of 27.40% is amongst the best of the industry. DLO outperforms 89.11% of its industry peers.
DLO's Return On Invested Capital of 23.82% is amongst the best of the industry. DLO outperforms 95.05% 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 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

DLO has a better Profit Margin (19.19%) than 75.25% of its industry peers.
In the last couple of years the Profit Margin of DLO has declined.
With a decent Operating Margin value of 20.61%, DLO is doing good in the industry, outperforming 68.32% of the companies in the same industry.
DLO's Operating Margin has declined in the last couple of years.
DLO has a Gross Margin of 40.68%. This is in the better half of the industry: DLO outperforms 60.40% of its industry peers.
DLO's Gross Margin has declined in the last couple of years.
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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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DLO is creating value.
Compared to 1 year ago, DLO has less shares outstanding
DLO has less shares outstanding than it did 5 years ago.
DLO has a better debt/assets ratio than last year.
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

DLO has an Altman-Z score of 4.64. This indicates that DLO is financially healthy and has little risk of bankruptcy at the moment.
DLO's Altman-Z score of 4.64 is amongst the best of the industry. DLO outperforms 87.13% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that DLO is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, DLO belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 4.64
ROIC/WACC2.62
WACC9.09%
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.
DLO's Current ratio of 1.65 is fine compared to the rest of the industry. DLO outperforms 70.30% of its industry peers.
DLO has a Quick Ratio of 1.65. This is a normal value and indicates that DLO is financially healthy and should not expect problems in meeting its short term obligations.
DLO's Quick ratio of 1.65 is fine compared to the rest of the industry. DLO outperforms 72.28% 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%.
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 quite strong growth in Revenue. The Revenue has grown by 11.59% in the last year.
The Revenue has been growing by 68.27% on average over the past years. This is a very strong growth!
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
The Revenue is expected to grow by 26.35% on average over the next years. This is a very strong growth
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

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.
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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5

4. Valuation

4.1 Price/Earnings Ratio

DLO is valuated rather expensively with a Price/Earnings ratio of 20.94.
The rest of the industry has a similar Price/Earnings ratio as DLO.
DLO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
DLO is valuated correctly with a Price/Forward Earnings ratio of 12.95.
DLO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.80. DLO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 20.94
Fwd PE 12.95
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

Based on the Enterprise Value to EBITDA ratio, DLO is valued a bit cheaper than the industry average as 62.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.1
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.
DLO's earnings are expected to grow with 36.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.41
EPS Next 2Y40.71%
EPS Next 3Y36.16%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.85%, DLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.88, DLO pays a better dividend. On top of this DLO pays more dividend than 81.19% of the companies listed 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 4.85%

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 (7/31/2025, 8:18:37 PM)

Premarket: 10.04 -0.22 (-2.14%)

10.26

-0.14 (-1.35%)

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 Change0.25%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap2.93B
Analysts71.43
Price Target12.98 (26.51%)
Short Float %24.69%
Short Ratio11.47
Dividend
Industry RankSector Rank
Dividend Yield 4.85%
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)12.52%
EPS NQ rev (1m)-8.47%
EPS NQ rev (3m)-2.15%
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)0.86%
Valuation
Industry RankSector Rank
PE 20.94
Fwd PE 12.95
P/S 3.76
P/FCF N/A
P/OCF 129.27
P/B 5.37
P/tB 6.1
EV/EBITDA 12.1
EPS(TTM)0.49
EY4.78%
EPS(NY)0.79
Fwd EY7.72%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)0.08
OCFY0.77%
SpS2.73
BVpS1.91
TBVpS1.68
PEG (NY)0.41
PEG (5Y)0.41
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 4.64
F-Score7
WACC9.09%
ROIC/WACC2.62
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