DLocal Limited
DLocal Limited Fundamental Analysis
DLocal Limited (DLO) shows strong financial fundamentals with a PE ratio of 22.04, profit margin of 17.80%, and ROE of 34.42%. The company generates $0.9B in annual revenue with strong year-over-year growth of 14.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DLO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDLO demonstrates superior asset utilization.
Valuation Score
ExcellentDLO trades at attractive valuation levels.
Growth Score
ModerateDLO shows steady but slowing expansion.
Financial Health Score
ExcellentDLO maintains a strong and stable balance sheet.
Profitability Score
ExcellentDLO achieves industry-leading margins.
Key Financial Metrics
Is DLO Expensive or Cheap?
P/E Ratio
DLO trades at 22.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DLO's PEG of 1.25 indicates fair valuation.
Price to Book
The market values DLocal Limited at 7.47 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.58 times EBITDA. This signals the market has high growth expectations.
How Well Does DLO Make Money?
Net Profit Margin
For every $100 in sales, DLocal Limited keeps $17.80 as profit after all expenses.
Operating Margin
Core operations generate 20.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.42 in profit for every $100 of shareholder equity.
ROA
DLocal Limited generates $12.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DLocal Limited produces operating cash flow of $164.64M, showing steady but balanced cash generation.
Free Cash Flow
DLocal Limited generates strong free cash flow of $143.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.50 in free cash annually.
FCF Yield
DLO converts 4.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.39
vs 25 benchmark
How DLO Stacks Against Its Sector Peers
| Metric | DLO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.04 | 34.79 | Better (Cheaper) |
| ROE | 34.42% | 1185.00% | Weak |
| Net Margin | 17.80% | -131296.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 1.46 | 4.90 | Neutral |
| ROA | 12.13% | -325472.00% (disorted) | Strong |
DLO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DLocal Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1179.99%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
632.19%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-201.23%
Industry Style: Growth, Innovation, High Beta
Declining