14.39 USD
+0.46 (+3.3%)
14.1468 USD
-0.24 (-1.69%)
Overall DLO gets a fundamental rating of 7 out of 10. We evaluated DLO against 97 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 could make DLO a good candidate for growth and quality investing.
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.
1.2 Ratios
- With an excellent Return On Assets value of 12.13%, DLO belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 33.88%, DLO belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
- The Return On Invested Capital of DLO (32.24%) is better than 96.91% 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 8.44%.
- The last Return On Invested Capital (32.24%) for DLO is above the 3 year average (27.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.13% | ||
| ROE | 33.88% | ||
| ROIC | 32.24% |
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
- Looking at the Profit Margin, with a value of 17.80%, DLO is in the better half of the industry, outperforming 68.04% of the companies in the same industry.
- DLO's Profit Margin has declined in the last couple of years.
- DLO's Operating Margin of 21.02% is fine compared to the rest of the industry. DLO outperforms 69.07% of its industry peers.
- DLO's Operating Margin has declined in the last couple of years.
- DLO's Gross Margin of 38.60% is in line compared to the rest of the industry. DLO outperforms 56.70% of its industry peers.
- In the last couple of years the Gross Margin of DLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.02% | ||
| PM (TTM) | 17.8% | ||
| GM | 38.6% |
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.
- DLO has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DLO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.73 indicates that DLO is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.73, DLO belongs to the best of the industry, outperforming 89.69% of the companies in the same industry.
- DLO has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
- The Debt to FCF ratio of DLO (0.03) is better than 92.78% of its industry peers.
- DLO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of DLO (0.01) is better than 89.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 4.73 |
ROIC/WACC3.61
WACC8.93%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that DLO should not have too much problems paying its short term obligations.
- DLO has a better Current ratio (1.46) than 68.04% of its industry peers.
- A Quick Ratio of 1.46 indicates that DLO should not have too much problems paying its short term obligations.
- The Quick ratio of DLO (1.46) is better than 69.07% 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 has grown by an impressive 27.27% over the past year.
- The Earnings Per Share has been growing by 51.16% on average over the past years. This is a very strong growth
- DLO shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.63%.
- The Revenue has been growing by 68.27% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)27.27%
EPS 3Y16.43%
EPS 5Y51.16%
EPS Q2Q%88.89%
Revenue 1Y (TTM)31.63%
Revenue growth 3Y45.11%
Revenue growth 5Y68.27%
Sales Q2Q%52.06%
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 39.79% 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 31.92% on average per year.
EPS Next Y64.85%
EPS Next 2Y47.27%
EPS Next 3Y39.79%
EPS Next 5YN/A
Revenue Next Year40.03%
Revenue Next 2Y35.41%
Revenue Next 3Y31.92%
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
- The Price/Earnings ratio is 25.70, which means the current valuation is very expensive for DLO.
- DLO's Price/Earnings ratio is a bit more expensive when compared to the industry. DLO is more expensive than 60.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DLO is valued at the same level.
- Based on the Price/Forward Earnings ratio of 16.59, the valuation of DLO can be described as correct.
- DLO's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. DLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DLO.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.76 | ||
| EV/EBITDA | 14.83 |
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.
- DLO has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DLO's earnings are expected to grow with 39.79% in the coming years.
PEG (NY)0.4
PEG (5Y)0.5
EPS Next 2Y47.27%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.55%, DLO has a reasonable but not impressive dividend return.
- DLO's Dividend Yield is rather good when compared to the industry average which is at 2.32. DLO pays more dividend than 80.41% of the companies in the same industry.
- DLO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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 2Y47.27%
EPS Next 3Y39.79%
DLOCAL LTD / DLO FAQ
What is the fundamental rating for DLO stock?
ChartMill assigns a fundamental rating of 7 / 10 to DLO.
What is the valuation status of DLOCAL LTD (DLO) stock?
ChartMill assigns a valuation rating of 5 / 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 are the PE and PB ratios of DLOCAL LTD (DLO) stock?
The Price/Earnings (PE) ratio for DLOCAL LTD (DLO) is 25.7 and the Price/Book (PB) ratio is 8.41.
Can you provide the expected EPS growth for DLO stock?
The Earnings per Share (EPS) of DLOCAL LTD (DLO) is expected to grow by 64.85% in the next year.