ScoreWhy is DLocal Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.89%
- Healthy long term growth as Net Sales has grown by an annual rate of 122.78% and Operating profit at 191.93%
- The company is Net-Debt Free
2
With a growth in Net Profit of 87.1%, the company declared Outstanding results in Dec 25
- The company has declared positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 439.96 MM
- ROCE(HY) Highest at 37.2%
- NET SALES(Q) Highest at USD 337.89 MM
3
With ROE of 34.92%, it has a very attractive valuation with a 6.36 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 42.57%, its profits have risen by 63.5% ; the PEG ratio of the company is 0.4
4
High Institutional Holdings at 78.39%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Market Beating Performance
- The stock has generated a return of 42.57% in the last 1 year, much higher than market (S&P 500) returns of 21.51%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to DLocal Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DLocal Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
DLocal Ltd.
34.75%
1.47
58.28%
S&P 500
22.36%
1.63
13.19%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
122.78%
EBIT Growth (5y)
191.93%
EBIT to Interest (avg)
13.82
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.13
Sales to Capital Employed (avg)
1.51
Tax Ratio
22.64%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
78.39%
ROCE (avg)
0
ROE (avg)
24.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
6.36
EV to EBIT
12.71
EV to EBITDA
11.39
EV to Capital Employed
-17.28
EV to Sales
2.64
PEG Ratio
0.37
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
34.92%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 439.96 MM
ROCE(HY)
Highest at 37.2%
NET SALES(Q)
Highest at USD 337.89 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
PRE-TAX PROFIT(Q)
Highest at USD 64.94 MM
OPERATING PROFIT(Q)
Highest at USD 71.17 MM
NET PROFIT(Q)
Highest at USD 55.87 MM
EPS(Q)
Highest at USD 0.19
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 16.03% (YoY
OPERATING PROFIT MARGIN(Q)
Lowest at 21.06 %
Here's what is working for DLocal Ltd.
Net Sales
Highest at USD 337.89 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 337.89 MM has Grown at 65.23%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 64.94 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Operating Cash Flow
Highest at USD 439.96 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 71.17 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
At USD 64.94 MM has Grown at 53.31%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 55.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 55.87 MM has Grown at 81.26%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.19
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Depreciation
Highest at USD 8.65 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 8.65 MM has Grown at 27.49%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for DLocal Ltd.
Operating Profit Margin
Lowest at 21.06 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 16.03% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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