DLocal Limited (DLO): a potential bargain?

Buy — cash-rich, fast-growing payments firm trading cheap after old fraud scares proved unfounded and margins are stabilizing.

🔥 HOT Fundamentals78/100

Down 79% from its all-time high of $67.97 — now $14.08

Why DLO dropped

The stock cratered in 2022-2023 after short-seller Muddy Waters alleged accounting fraud in emerging markets like Argentina; independent audit committee reviews found no wrongdoing, but the stock never recovered as investors kept fearing further reports and watched gross margins compress from competition and a shift toward larger, lower-margin enterprise clients.

Fwd P/E 12.3Op margin 16.1%Rev growth 55.8%Debt/equity 12.5%Analyst upside 33.5%

How this scored 78/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 15.0%

✅ Generates cash Free cash flow $407M

✅ Not drowning in debt Debt/equity 12.5% (limit 200%)

✅ Can pay its bills Current ratio 1.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 20/25

Operating margin 16.1% 6/9

Net profit margin 15.0% 6/8

Return on equity 41.3% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 55.8% 9/9

Earnings growth 28.6% 8/8

Expected profit change 68.2% 8/8

Value Is it cheap right now? 15/25

Forward P/E 12.3 9/10

PEG ratio unknown 2/8

Analyst target upside 33.5% 4/7

Balance sheet Will it survive? 18/25

Debt / equity 12.5% 10/10

Current ratio 1.2 1/8

Free cash flow $407M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-28. Research only — not financial advice.