Return on equity of 35%, free cash flow converting at 206% of net income, a wide economic moat, and 55% revenue growth year-over-year combine to describe a high-quality, fast-growing business trading at a forward earnings multiple of roughly 11.5x with a price-to-earnings-growth ratio of 0.16 — a combination that screens attractively valued; the stock sits below its 200-day moving average in a near-term pullback, but the long-term average is still rising, and the 19% headroom to the analyst target offers favorable risk/reward, with an elevated put/call ratio as the primary sentiment overhang.
Thesis pillars
- Strong Revenue Growth Leadership→Stable
- Attractive Valuation For Growth→Stable
- High Quality Business Fundamentals→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026· older than 90 days
DLocal Limited (DLO) Stock Analysis
Technology · Software - Infrastructure
Sell if holding. Multiple concerning factors at $13.90: Sector modifier (Technology): -0.8; Earnings in 7 days (event risk).
DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and local cards, online bank transfers,... Read more
Sell if holding. Multiple concerning factors at $13.90: Sector modifier (Technology): -0.8; Earnings in 7 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Score 7.1/10, moderate confidence.
Passes 7/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on earnings proximity 7d<=7d. Suitability: aggressive.
Recent developments
No fresh coverage since Oct 7, 2026
Recent Developments — DLocal Limited
Latest news
- NEWS DLocal: Margin Compression Is A Feature Of Scale, Not A Defect - Seeking Alpha — Seeking Alpha Oct 7, 2026 negative
- NEWS DLocal Stock: Margin Compression Is A Feature Of Scale, Not A Defect (NASDAQ:DLO) - Seeking Alpha — Seeking Alpha Oct 7, 2026 negative
- NEWS Is It Too Late to Buy DLocal Ltd (DLO) After 5.6% Rally? GF Value Says Undervalued - GuruFocus — GuruFocus Oct 6, 2026 positive
- NEWS Is It Too Late to Buy DLocal Ltd (DLO) After 5.6% Rally? GF Value Says Undervalued - gurufocus.com — gurufocus.com Oct 6, 2026 positive
- NEWS DLO Q2 2026 Earnings: EPS of $0.18 Falls Short of Estimate by 4.86% as Shares Edge Higher - Earnings Yield Analysis - ht — https://www.dars.gov.et/ Oct 4, 2026 negative
Latest item Oct 7, 2026 · Generated 2026-11-05T11:29:00Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 ceiling hit
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Multiple concerning factors at $13.90: Sector modifier (Technology): -0.8; Earnings in 7 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $12.93. Score 7.1/10, moderate confidence.
Analyst target: $16.18 (+16.4% upside). Prior stop was $12.93. Stop-loss: $12.93.
Sector modifier (Technology): -0.8; Earnings in 7 days (event risk); Negative news sentiment (-0.67).
DLocal Limited trades at a P/E of 20.4 (forward 12.3). TrendMatrix value score: 7.7/10. Verdict: Sell.
15 analysts rate DLO, with a consensus score of 4.0/5. 10 analysts publish price targets averaging $19.
What does DLocal Limited do?DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a...
DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and local cards, online bank transfers, direct debit, cash, and hundreds of alternative payment methods (APMs). It also provides pay-in solutions for cross-border and local-to-local transactions, as well as pay-out solutions. In addition, the company offers dLocal for Platforms to manage global platform payments. It serves its products to commerce, streaming, ride-hailing, financial services, remittances, advertising, SaaS, travel, e-learning, on-demand delivery, gaming, and crypto industries. The company was founded in 2016 and is headquartered in Montevideo, Uruguay.