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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#598
Positioning
Market Dominance
Services
Business Services
$3.3B
Sebastián Kanovich
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.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DLO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$DLO dLocal Ltd | 61 | 82 | 80 | 63 | 29.6x | 5.3x | 112.6% | 47.0% | 39.5% | 18.8% | 18.4% | 14.7% | 0.0% | 1.0x | $3.3B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
dLocal Ltd (DLO) receives a "Hold" rating with a composite score of 61.0/100. It ranks #598 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Headcount
540
HQ Base
Pending Verification
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DLO.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 82 | 96 | -14DRAG |
| MOMENTUM | 63 | 69 | -6DRAG |
| VALUATION | 80 | 90 | -10DRAG |
| INVESTMENT | 40 | 69 | -29DRAG |
| STABILITY | 52 | 55 | -3NEUTRAL |
| SHORT INT | 30 | 17 | +13ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 112.6% (sector 5.7%)
GM 40% vs sector 65%, OM 19% vs sector 5%
Capital turnover N/A, R&D intensity 3.4%
Rev growth 15%, 4yr history
Interest coverage 2.8x, Net debt/EBITDA -2.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate dLocal Ltd (DLO) as a Hold with a composite score of 61.0/100 at a current price of $12.39. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
dLocal Ltd holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 61.0/100 places it at rank #598 in our full universe.
The near-term outlook is constructive, with revenue growing at 15% and momentum in the 63th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Low
Exemplary
Undervalued
Returns on equity of 112.6% exceed cost of capital.
Value factor score of 80 suggests attractive pricing.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
dLocal Ltd represents a hold based on multi-factor quantitative performance.
Our model assigns dLocal Ltd a Hold rating, with a composite score of 61.0/100 and 3 out of 5 stars. Ranked #598 of 7,333 stocks, DLO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
DLO earns a quality score of 82/100, indicating above-average business quality. The company reports a return on equity of 112.6% (sector avg: 5.7%), gross margins of 39.5% (sector avg: 64.6%), net margins of 18.4% (sector avg: 2.8%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
DLO carries a solid value score of 80/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 29.55x, an EV/EBITDA of 5.29x, a P/B ratio of 8.07x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 40/100, DLO exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 14.7% vs. a sector average of 8.6% and a return on assets of 47.0% (sector: 2.4%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
DLO demonstrates moderate momentum with a score of 63/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 14.7% year-over-year, while a beta of 1.13 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 52/100, DLO exhibits average financial resilience. Key stability metrics include a beta of 1.13 and a debt-to-equity ratio of 1.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
dLocal Ltd's short interest score of 30/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. At $3.3B (mid-cap), DLO carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
dLocal Ltd is a mid-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #598 of 7,333 overall (92nd percentile). Key comparisons include ROE of 112.6% exceeding the 5.7% sector median and operating margins of 18.8% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While DLO currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Key factor gap
Quality (82) vs Short Int. (30) — closing this gap could shift the rating.
EV/EBITDA 55% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 1862% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 39% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Six of the author's top 10 stock picks for 2025 gained more than 25%, significantly outperforming the S&P 500. The author believes Nvidia, TSMC, and dLocal can repeat this performance in 2026 due to continued AI spending and market expansion opportunities. However, CrowdStrike, ASML, and Alphabet are now fully valued and unlikely to deliver 25%+ returns again, though they should still outperform the market.
In the past year, payment technology company DLocal announced that revenue rose 23% to US$960 million and EBITDA increased 24% to US$203 million, alongside expanding into Africa through its AZA Finance acquisition and declaring plans to distribute 30% of free cash flow as dividends from 2026. Together with recent earnings beats and upgrades to Buy ratings from Goldman Sachs and Truist Securities, these moves highlight how DLocal is pairing growth investment with a new commitment to returning...
DLocal (NasdaqGS:DLO) continues to draw attention after recent share performance that includes a small 0.08% move over the past day and declines over the month and past 3 months. Investors are reassessing what the current pricing implies. See our latest analysis for DLocal. At the current share price of $13.19, DLocal’s 7 day and 30 day share price returns of 4.56% and 7.96% declines, together with a 6.12% positive 1 year total shareholder return, indicate that near term momentum has softened...
We recently published an article titled 13 High Growth Cloud Stocks to Buy. On February 2, JPMorgan lowered its price target on DLocal Limited (NASDAQ:DLO) to $18 from $18.50 while maintaining an Overweight rating on the shares. The firm expects quarterly results to be solid, though tougher year-over-year comparisons could limit upside surprises in payment […]
Uruguayan fintech dLocal reported strong Q3 2025 results with 52% revenue growth and record $10.4 billion Total Payment Volume, but experienced a slight decline in net take rate that caused investor concern and stock price pullback.