DLocal (DLO) AI Stock Analysis

• Market Cap: $4.21B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.17
• Revenue Growth: 22.02%
• EPS Growth: 12.42%
• Country: US
• Employees: 1,095
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.17
• Shares Outstanding: 164,649,320
• 10 Day Avg. Volume: 1,675,044
• 30 Day Avg. Volume: 2,183,855
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 11.63
• 1Y Price Target: $16.56
• Price Target Upside: 17.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $1.02B

• Rating: 77 Outperform
• Price Target: $16.00 ▲(13.64% Upside)

DLocal's strong financial performance and positive earnings call sentiment are the primary drivers of its score. While technical indicators suggest some short-term weakness, the company's robust growth and strategic expansions provide a positive outlook. Valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Revenue Growth

Sustained high revenue growth indicates strong demand for dLocal's services, enhancing its market position and potential for future expansion.

Geographic Diversification

Improved geographic diversification reduces dependency on any single market, mitigating risks and stabilizing revenue streams across regions.

Operational Efficiency

Strong operational efficiency and profitability metrics highlight dLocal's ability to manage costs effectively, supporting long-term margin sustainability.

Negative Factors

Currency Devaluation Impact

Currency devaluation in key markets like Argentina can significantly affect profitability, posing a risk to financial stability if such trends persist.

Cash Flow Management

Challenges in cash flow management could strain liquidity, limiting dLocal's ability to invest in growth opportunities or weather financial downturns.

Regulatory Risks

Potential regulatory changes could disrupt operations and increase costs, impacting dLocal's ability to maintain its competitive edge in key markets.

DLocal Business Overview & Revenue Model

Company Description

DLocal Limited operates a payments platform in the United States, Europe, China, and internationally. Its payments platform enables merchants to get paid and to make payments online. The company serves commerce, streaming, ride-hailing, financial services, advertising, software as a service, travel, e-learning, on-demand delivery, gaming, and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

How the Company Makes Money

DLocal generates revenue primarily through transaction fees charged to merchants for processing payments. This includes fees for both incoming transactions (when customers make payments) and outgoing transactions (when merchants make payouts to users). In addition to these transaction fees, DLocal may earn revenue from value-added services such as fraud prevention tools, currency conversion, and analytics services provided to merchants. Significant partnerships with local banks and financial institutions enhance DLocal's service offerings and expand its reach in various regions, thereby contributing to its revenue growth.

DLocal Financial Statement Overview

Summary

DLocal shows strong financial health with robust revenue growth and profitability. The balance sheet is particularly strong, with low leverage and high return on equity. However, cash flow management poses some challenges, particularly in the TTM period, which could impact liquidity if not addressed.

Income Statement

DLocal has demonstrated strong revenue growth with a TTM increase of 10.94% and a robust annual growth trajectory. The company maintains healthy profitability margins, with a TTM gross profit margin of 40.03% and a net profit margin of 16.90%. EBIT and EBITDA margins are also solid at 24.54% and 26.84%, respectively. However, there is a slight decline in gross profit margin over the years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet is strong, characterized by a very low debt-to-equity ratio of 0.0087 in the TTM, indicating minimal leverage and financial risk. The return on equity is impressive at 30.10%, reflecting efficient use of equity capital. The equity ratio stands at 36.68%, showcasing a stable financial structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals some challenges, with a significant drop in free cash flow growth in the TTM. The operating cash flow to net income ratio is relatively low at 0.15, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is healthy at 76.75%, indicating decent cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	863.48M	745.97M	650.35M	418.93M	244.12M	104.14M
Gross Profit	345.65M	294.67M	276.86M	202.17M	130.44M	60.08M
EBITDA	231.74M	168.91M	184.21M	153.10M	90.79M	32.48M
Net Income	145.90M	120.42M	148.96M	108.68M	77.88M	28.18M
Balance Sheet
Total Assets	1.22B	1.17B	1.08B	826.30M	583.01M	200.47M
Cash, Cash Equivalents and Short-Term Investments	602.47M	566.11M	638.84M	469.39M	337.20M	52.00M
Total Debt	3.90M	54.45M	3.96M	4.08M	8.94M	218.00K
Total Liabilities	773.13M	682.34M	629.31M	426.68M	302.71M	155.42M
Stockholders Equity	447.96M	488.89M	455.03M	399.63M	280.32M	45.05M
Cash Flow
Free Cash Flow	90.81M	-34.49M	275.23M	142.10M	60.47M	84.60M
Operating Cash Flow	118.31M	-32.78M	293.45M	154.45M	108.49M	88.49M
Investing Cash Flow	-38.89M	-17.75M	-84.67M	4.30M	-37.94M	3.65M
Financing Cash Flow	-126.78M	-68.59M	-133.87M	-27.33M	153.75M	-15.20M

DLocal Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLO, the sentiment is Neutral. The current price of 14.08 is below the 20-day moving average (MA) of 14.95, below the 50-day MA of 14.52, and above the 200-day MA of 11.50, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DLO.

DLocal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLO	77 Outperform	$4.21B	27.73	32.78%	―	22.02%	12.42%
PAYO	76 Outperform	$2.09B	21.99	13.86%	―	13.02%	-2.57%
PAGS	68 Neutral	$3.07B	7.48	14.59%	1.46%	0.09%	5.38%
RELY	68 Neutral	$3.34B	259.29	2.10%	―	35.12%	―
EEFT	66 Neutral	$3.09B	10.70	22.97%	―	7.25%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STNE	51 Neutral	$5.11B	―	-8.77%	―	-20.82%	-154.29%

DLocal Corporate Events

Dlocal Limited’s Earnings Call Highlights Record Growth and Future Optimism

The recent earnings call for Dlocal Limited painted a picture of strong financial performance and growth, with record-breaking metrics and strategic expansions driving a positive outlook. Despite these achievements, the company acknowledged challenges such as currency devaluation and potential external regulatory risks.

DLocal Reports Strong Q2 2025 Financial Growth

DLocal Limited is a technology-driven payments platform that facilitates local payments in emerging markets, connecting global merchants with consumers across Africa, Asia, and Latin America. The company recently reported its financial results for the second quarter of 2025, showcasing significant growth and operational achievements.