DLocal (DLO) AI Stock Analysis

• Market Cap: $4.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.23
• Revenue Growth: 22.02%
• EPS Growth: 12.42%
• Country: US
• Employees: 1,095
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.20
• Shares Outstanding: 165,673,370
• 10 Day Avg. Volume: 1,173,736
• 30 Day Avg. Volume: 1,047,154
• PEG Ratio: -1.23
• Price to Book (P/B): 7.11
• Price to Sales (P/S): 4.66
• P/FCF Ratio: -62.72
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 3.91
• Enterprise Value/Gross Profit: 10.12
• Enterprise Value/Ebitda: 17.63
• 1Y Price Target: $17.33
• Price Target Upside: 23.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $1.38B

• Rating: 73 Outperform
• Price Target: $15.50 ▲(10.32% Upside)

DLocal's strong financial performance and positive earnings call sentiment are significant strengths, driving a high score. However, technical indicators suggest bearish momentum, and the valuation is moderate, which tempers the overall score.

Positive Factors

Balance sheet strength

Extremely low leverage and a strong equity base give DLocal durable financial flexibility to fund growth, invest in product expansion, or absorb shocks without raising costly debt. High ROE signals efficient capital use, supporting long-term reinvestment and shareholder returns.

Scaleable TPV and revenue growth

Rapid, sustained TPV and revenue expansion demonstrate strong merchant adoption and network effects across emerging markets. Scale across transactions drives higher gross profit and operational leverage, underpinning durable top-line growth potential and margin expansion over multiple quarters.

Product and regional expansion

Expanding payment rails (BNPL, APMs-on-file) and exploring stablecoins deepen product breadth and merchant stickiness. Broader local method coverage and new payment products increase revenue per merchant and competitive differentiation, strengthening long-term market positioning.

Negative Factors

Weak cash conversion

Low operating cash conversion versus reported earnings indicates earnings are not fully converting to cash, which can constrain discretionary investment and amplify funding needs if growth requires upfront working capital. This structural conversion gap raises financing sensitivity over time.

Emerging-market policy and macro risks

Concentration in volatile emerging markets exposes DLocal to durable policy, tariff and macro shocks that can erode margins and disrupt growth. Structural regulatory or fiscal shifts in key countries can materially and persistently affect TPV, pricing power, and profitability across regions.

Margin pressure trend

Although margins remain healthy, the noted decline versus prior periods suggests rising costs or intensifying competition. If structural cost pressures or pricing erosion persist, sustaining current profitability will require product mix improvement or efficiency gains, challenging long-term margin resilience.

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. When a transaction is completed, DLocal takes a percentage of the total amount as a service fee. Additionally, the company may earn revenue from value-added services such as currency conversion, fraud detection, and chargeback management. DLocal has established significant partnerships with various e-commerce platforms, marketplaces, and financial institutions, which not only expand its customer base but also enhance its service offerings. These collaborations allow DLocal to tap into new markets and drive growth, contributing to its overall earnings.

DLocal Financial Statement Overview

Summary

DLocal exhibits strong financial health with robust revenue growth and profitability, supported by a solid balance sheet with minimal leverage. While cash flow metrics have improved, the company should focus on enhancing cash conversion efficiency.

Income Statement

DLocal has demonstrated strong revenue growth with a TTM revenue growth rate of 11.2%, following a significant increase in previous years. The company maintains healthy profitability metrics, with a gross profit margin of 40% and a net profit margin of 16.9% in the TTM. EBIT and EBITDA margins are also robust at 24.5% and 26.8%, respectively. However, there is a slight decline in margins compared to earlier periods, which could indicate increasing costs or competitive pressures.

Balance Sheet

The balance sheet is strong, with a very low debt-to-equity ratio of 0.0087, indicating minimal leverage and financial risk. Return on equity is impressive at 30.1%, reflecting efficient use of equity capital. The equity ratio stands at 35.8%, suggesting a solid capital structure with a good proportion of equity financing.

Cash Flow

DLocal's cash flow performance shows improvement, with a significant increase in free cash flow growth of 67% in the TTM. The operating cash flow to net income ratio is 0.15, which is relatively low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is healthier at 0.77, suggesting reasonable cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	960.19M	745.97M	650.35M	418.93M	244.12M	104.14M
Gross Profit	370.66M	294.67M	276.86M	202.17M	130.44M	60.08M
EBITDA	212.83M	168.91M	191.32M	128.61M	90.39M	32.43M
Net Income	170.95M	120.42M	148.96M	108.68M	77.88M	28.18M
Balance Sheet
Total Assets	1.41B	1.17B	1.08B	826.30M	583.01M	200.47M
Cash, Cash Equivalents and Short-Term Investments	699.49M	566.11M	638.84M	513.20M	228.92M	52.00M
Total Debt	3.71M	54.45M	3.96M	4.08M	8.94M	218.00K
Total Liabilities	904.09M	682.34M	629.31M	426.68M	302.71M	155.42M
Stockholders Equity	504.53M	488.89M	455.03M	399.63M	280.32M	45.05M
Cash Flow
Free Cash Flow	151.62M	-55.43M	275.23M	167.26M	60.47M	84.60M
Operating Cash Flow	173.91M	-32.78M	293.45M	168.25M	108.49M	88.49M
Investing Cash Flow	-10.69M	-17.75M	-84.67M	-13.34M	-37.94M	3.65M
Financing Cash Flow	-116.17M	-68.59M	-133.87M	-23.48M	153.75M	-15.20M

DLocal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLO, the sentiment is Negative. The current price of 14.05 is below the 20-day moving average (MA) of 14.37, above the 50-day MA of 13.86, and above the 200-day MA of 12.31, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 21.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLO.

DLocal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAGS	80 Outperform	$3.32B	7.80	14.28%	1.40%	0.58%	5.76%
DLO	73 Outperform	$4.14B	23.46	35.56%	―	22.02%	12.42%
PAYO	69 Neutral	$1.92B	28.41	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$3.14B	10.88	23.10%	―	7.25%	-1.12%
RELY	66 Neutral	$2.87B	146.74	2.94%	―	31.27%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STNE	51 Neutral	$3.93B	-28.28	-7.53%	―	-25.51%	-139.31%