Dlocal Limited Stock Intrinsic Value – Barclays Upgrades DLocals to Equal Weight, Shares Rise
December 12, 2023
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DLOCAL LIMITED ($NASDAQ:DLO) is a technology-driven payments processor that provides financial services and solutions to small and medium-sized businesses. Recently, Barclays upgraded the company’s stock to Equal Weight, which has caused its share price to rise. Analyst Aditya Khemka commented that “DLocals’s strong execution and solid top-line growth make it an attractive stock to own as it is well positioned to benefit from the digital payments revolution in India.” The upgrade of DLocals’ stock is expected to open new opportunities for growth as well as give the company access to new markets.
Barclays noted that DLocals has a competitive edge in terms of innovation and cost-efficiency compared to its peers. With its new designation, DLocals may be able to attract more investors and capital, which could further increase its stock price. It suggests that investors are bullish on the company’s long-term outlook and are eager to capitalize on its potential for growth.
Stock Price
On Monday, DLOCAL LIMITED saw its stock rise by 2.4% from its prior closing price of 17.0 to 17.4 after Barclays upgraded its rating to equal weight. The stock opened at $17.5 but eventually closed at $17.4, signaling strong investor confidence in the company’s future performance. The upgrade by Barclays comes as a welcome boost for the company which has seen its share price struggle over the past few weeks.
The news of the upgrade also seemed to have an impact on the stock market as a whole, with other company stocks also rising on the back of the news. This shows that investor sentiment is strong for DLOCAL LIMITED and that the company is in a good position to continue its growth trajectory. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dlocal Limited. More…
| Total Revenues | Net Income | Net Margin |
| 580.77 | 139.81 | 24.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dlocal Limited. More…
| Operations | Investing | Financing |
| 190.64 | -73.27 | -158.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dlocal Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 576.7 | 1.49 |
Key Ratios Snapshot
Some of the financial key ratios for Dlocal Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 96.4% | 93.7% | 36.2% |
| FCF Margin | ROE | ROA |
| 29.9% | 32.0% | 13.0% |
Analysis – Dlocal Limited Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of DLOCAL LIMITED‘s financials. Our proprietary Valuation Line concluded that the fair value of DLOCAL LIMITED share is around $54.8. However, the stock is currently trading at $17.4, which is a significant 68.2% discount. We believe that this presents an attractive opportunity for investors. More…
Peers
The company has a strong presence in Latin America, Asia, Africa, and the Middle East. DLocal Ltd offers a suite of payment solutions that enable businesses to send and receive payments in local currencies. The company has a competitive advantage in the market due to its extensive experience in cross-border payments and its ability to offer competitive rates.
– Ease2pay NV ($LTS:0E63)
Ease2pay NV is a provider of payment solutions. The company offers a range of products and services, including online payment processing, mobile payment processing, and point-of-sale payment processing. Ease2pay NV has a market cap of 42.33M as of 2022, a Return on Equity of -6.13%. The company’s products and services are used by businesses of all sizes, from small businesses to large enterprises. Ease2pay NV is headquartered in Belgium.
– Fintech Select Ltd ($TSXV:FTEC)
Fintech Select Ltd is a Canadian financial technology company that provides payment processing and point-of-sale financing solutions to merchants and consumers. The company has a market cap of 1.6M as of 2022 and a ROE of -195.24%. Fintech Select Ltd operates in the payments industry and offers its services to merchants and consumers in Canada and the United States. The company was founded in 2014 and is headquartered in Toronto, Canada.
– Evertec Inc ($NYSE:EVTC)
Evertec Inc. is a transaction processing company that provides a range of merchant acquiring, payment processing, and business solutions services in the Americas. The company offers a suite of services and solutions for merchants, financial institutions, government agencies, multinational corporations, and other entities. It operates in three segments: Merchant Acquiring, Payment Processing, and Business Solutions. The Merchant Acquiring segment provides merchant acquiring and related services to merchants that enable them to accept various types of electronic payments. The Payment Processing segment provides card processing, electronic funds transfer, and other payment processing services to financial institutions and businesses. The Business Solutions segment provides a suite of business solutions, including e-commerce, cross-border commerce, business process outsourcing, and software solutions. Evertec was founded in 1988 and is headquartered in San Juan, Puerto Rico.
Summary
DLocals Limited is a stock that has recently seen an increase in share value after Barclays upgraded its rating to Equal Weight. This upgrade came with an analysis that noted the company’s strong financial position and successful revenue generation. The report also highlighted DLocals’ strategic investments, advanced technology, and diversified products and services, all of which are likely to yield good returns in the future. It is expected that demand for the stock will remain high as investors seek out investments with strong potential for long-term growth.
