DLocal Limited — Software - Infrastructure. Scored on the same transparent 7-signal model behind the daily rankings.
★
DLO
DLocal Limited · Software - Infrastructure
FCF$413mC
Rev+46.6%A
D/E0.20B+
P/E22.8xB+
PEG0.49A
89.3Score
$14.57$4.3B
1Y Target$17.75Analyst consensus · 10 analysts
5Y Target$22.41Compound horizon
10Y Target$28.74Long-dated conviction
FCF$413mTTMC
FCF $413m — modest; watch for margin expansion
Rev+46.6%TTM YoYA
Revenue +46.6% — hypergrowth, top decile
D/E0.20B+
D/E 0.20 — below the Technology debt median (≈40th pctile)
P/E22.8xB+
P/E 22.8 — below the Technology median (≈40th pctile)
PEG0.49proxyA
PEG 0.49 — exceptional; paying well under fair value for growth · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 89.3
Quality0.84
Growth1.00
Value0.85
Why this score
Durable high returns
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week high
13% off the 12-month high
vs DCF fair value58% belowest. fair value ~$35
Quality signals · context only
Gross profitability26% · Bgross profit ÷ total assets (Novy-Marx)
ROIC26.5% · Areturn on invested capital — not score-weighted
Why now
The core bull case for DLocal centers on its exceptional combination of rapid revenue expansion and robust profitability within the high-growth cross-border and local-to-local payment processing market. With revenue soaring at 46.6% (FY YoY) and maintaining an impressive 18% profit margin, DLocal is generating substantial free cash flow of $413M (TTM) while trading at an attractive 0.49 PEG ratio. This powerful compounding is driven by its indispensable suite of pay-in and pay-out solutions, including hundreds of alternative payment methods, which are critical for global merchants expanding into diverse online markets like commerce, streaming, and financial services.
Moat
DLocal's durable competitive advantage is rooted in its deeply embedded, localized payment infrastructure, which offers an unparalleled array of alternative payment methods (APMs) across its operating regions. This extensive network creates significant switching costs for global merchants, who rely on DLocal's comprehensive solutions to navigate the complexities of international and local-to-local transactions. The company's exceptional 34.6% Return on Equity underscores its pricing power and operational efficiency, stemming from its unique ability to simplify payment processing for critical end markets such as ride-hailing, SaaS, and e-learning.
Risk
The primary bear case for DLocal hinges on the potential for a significant deceleration in its currently high revenue growth amidst an increasingly competitive global payment processing environment. While DLocal boasts a 46.6% revenue growth rate, a slowdown could rapidly re-rate its 22.8 P/E multiple, especially given its exposure to various end markets that can be sensitive to economic shifts. A sustained quarter-over-quarter decline in revenue growth, coupled with any contraction in its healthy profit margins, would be a clear signal confirming the bear thesis.
Horizon
1-3 yr $17.75 (10-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $22.41 at ~9% CAGR — dividend + buyback compounding. 10 yr $28.74 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · DLO
$
%
%
Shares to buy
137
Position size
$1,996
4.0% of portfolio
Stop price
$10.93
25% below $14.57
$ at risk if stopped
$499.02
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
DLocal Limited (DLO): score, valuation & FAQ
DLocal Limited (DLO) is a Software - Infrastructure company that scores 89.3 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A), PEG (A) and D/E (B+). On valuation, DLO sits about 58% below our discounted-cash-flow fair value (a margin of safety).
Is DLO a good stock to buy?
Bull Rankings scores DLO 89.3 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (A), PEG (A) and D/E (B+). A score is a quantitative screen of DLocal Limited's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DLO score 89.3 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DLO earns its highest marks on Rev (A), PEG (A) and D/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DLO overvalued or undervalued?
Based on $14.57, DLO sits about 58% below our discounted-cash-flow fair value (a margin of safety). It trades at a 22.8x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in DLO?
The primary bear case for DLocal hinges on the potential for a significant deceleration in its currently high revenue growth amidst an increasingly competitive global payment processing environment. While DLocal boasts a 46.6% revenue growth rate, a slowdown could rapidly re-rate its 22.8 P/E multiple, especially given its exposure to various end markets that can be sensitive to economic shifts. A sustained quarter-over-quarter decline in revenue growth, coupled with any contraction in its healthy profit margins, would be a clear signal confirming the bear thesis.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.