DLocal Limited Class A Common Shares (DLO)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for businesses that earn high returns, convert profits into cash, and sell at a sensible price. DLocal processes cross-border and local payments worldwide. In the latest filed quarter, fiscal Q2 2026, revenue was $399.7M and net income was $54.6M, a 13.67% net margin. The supplied data list revenue growth of 55.84% and profit growth of 27.63%, which is impressive. The balance sheet is conservative, with debt-to-equity of 0.12, and trailing free cash flow is $388.4M, a 9.9% FCF yield. Return on equity is 41.29%, but return on capital employed is 8.62%, a more modest figure that deserves scrutiny. At the 2026-10-13 close of $15.02, FairStock calculates a P/E of 22.09, P/B of 7.99, PEG of 0.80, EV/EBITDA of 11.78, Piotroski F-Score of 6/9, Altman Z-Score of 2.25, and FairStock Score of 80/100. The Graham Number is $5.31, so the margin of safety is -182.86%; by Graham's conservative yardstick, the price is not cheap. Still, the PEG and FCF yield suggest growth-adjusted value may be fair. The business description suggests a payments network with local methods that could be hard to replicate, but the numbers alone do not prove a wide moat. No Peter Lynch category is assigned because only 0 years of filed results are available. DLocal looks like a high-quality, cash-generative grower, but the book multiple and Graham value demand patience and more filing history before calling it a bargain.

In plain English: DLocal helps global merchants accept and send payments in many countries, including local cards and other payment methods. The business looks strong: it is growing, profitable, produces plenty of cash, and uses little debt. The stock price looks high compared with the company's book value and a conservative earnings-based value, though it looks more reasonable when compared with its growth and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer