DLocal Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DLocal Ltd.

nCino, Inc.

Flywire Corp.

Freshworks, Inc.

Blackbaud, Inc.

Mobileye Global, Inc.

Altair Engineering, Inc.

BlackLine, Inc.

Playtika Holding Corp.

PowerSchool Holdings, Inc.

Instructure Holdings, Inc.

Why is DLocal Ltd. ?

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

With a growth in Net Sales of 55.84%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 7 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 452.38 MM
ROCE(HY) Highest at 41.28%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

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 -6.31%, its profits have risen by 63.5% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 85.1%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How 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.

-5.45%

1.71

46.39%

S&P 500

15.76%

1.22

13.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

122.78%

EBIT Growth (5y)

191.93%

EBIT to Interest (avg)

13.82

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.13

Sales to Capital Employed (avg)

1.51

Tax Ratio

22.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

78.39%

ROCE (avg)

ROE (avg)

24.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

34.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 452.38 MM

ROCE(HY)

Highest at 41.28%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at USD 1,833.13 MM

DEBT-EQUITY RATIO (HY)

Lowest at -153.88 %

NET SALES(Q)

Highest at USD 399.66 MM

OPERATING PROFIT(Q)

Highest at USD 74.01 MM

PRE-TAX PROFIT(Q)

Highest at USD 67.92 MM

NET PROFIT(Q)

Highest at USD 57.11 MM

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 19.05% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.66 times

Here's what is working for DLocal Ltd.

Net Sales

At USD 399.66 MM has Grown at 55.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 452.38 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 399.66 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 74.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 67.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 57.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 1,833.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -153.88 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for DLocal Ltd.

Debtors Turnover Ratio

Lowest at 1.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 19.05% (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

Footer loading