DLocal (DLO) AI Stock Analysis

• Market Cap: $3.68B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.27
• 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: 1,082,890
• 30 Day Avg. Volume: 1,174,831
• 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: 0.89
• Enterprise Value/Revenue: 3.40
• Enterprise Value/Gross Profit: 8.80
• Enterprise Value/Ebitda: 15.33
• 1Y Price Target: $18.67
• Price Target Upside: 32.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $15.50 ▲(10.32% Upside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

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 high ROE provide durable financial flexibility, enabling sustained investment in product expansion and market entry. A strong capital structure lowers refinancing risk and supports strategic initiatives across emerging markets over the next several quarters.

High TPV and Revenue Momentum

Rapidly rising TPV and expanding gross profit reflect durable network effects and merchant traction in underserved markets. Consistent volume growth supports recurring transaction revenue and scale economics that can sustain top-line expansion and margin leverage over the medium term.

Product and Local Payments Expansion

Broadening product suite and local payment coverage increases addressable market and merchant stickiness. Diversified payment rails and BNPL deployment reduce single-market reliance and support durable revenue diversification and competitive positioning in emerging markets.

Negative Factors

Weak Operating Cash Conversion

Low conversion of reported net income into operating cash suggests working capital or timing issues that can constrain reinvestment and make capital allocation more sensitive. Even with FCF growth, persistent weak conversion can pressure liquidity and funding flexibility.

Emerging-Market Policy & Macro Risks

Operating across volatile jurisdictions exposes margins to recurring macro and policy swings (currency, tariffs, fiscal changes). These structural risks can drive uneven profitability, require higher risk provisions, and complicate multi-quarter planning and pricing strategies.

Slight Margin Erosion

A measurable decline in gross and net margins versus prior periods suggests intensifying competition or rising costs. If structural, margin erosion can reduce free cash flow conversion and limit ability to fund growth or absorb regional shocks over the medium term.

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	Mar 2023	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: Positive
• Last Price: 14.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLO, the sentiment is Positive. The current price of 14.05 is above the 20-day moving average (MA) of 13.27, above the 50-day MA of 13.84, and above the 200-day MA of 12.88, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLO.

DLocal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAGS	80 Outperform	$3.08B	8.21	14.28%	1.40%	0.58%	5.76%
DLO	73 Outperform	$3.68B	21.71	35.56%	―	22.02%	12.42%
PAYO	67 Neutral	$1.97B	28.57	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$2.99B	10.22	24.39%	―	7.25%	-1.12%
RELY	65 Neutral	$2.85B	54.64	8.86%	―	31.27%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STNE	51 Neutral	$4.47B	-33.16	-7.53%	―	-25.51%	-139.31%