Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 25 May 2026
DLO· Technology
DLocal
DLocal's high ROIC of 28.5% indicates strong profitability, but its gross margin of 36.8% lags significantly behind sector peers.
Buffett fit
Partial fit
Owner
72
Durability
86
Management
40
Price
55
Score updated 26 Sept 2026 · analysis from 25 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of DLocal, I would focus on sustaining its 45.48% revenue CAGR over the next decade.
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DLocal has been profitable for the last five years, with no annual losses.
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The management has maintained a flat share count over five years, indicating a disciplined approach to .
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With an earnings yield of 5.03% and an yield of 10.93%, the valuation appears reasonable, but it lacks a significant compared to the ideal 8-10% threshold.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 28.5% is well above the sector top-quintile cutoff of 10.7%.
- 2 of 20.1% exceeds the sector top-quintile of 14.0%.
- 3Revenue CAGR of 45.48% over the last five years demonstrates strong growth.
- 4 of $421.87 million indicates strong cash generation capabilities.
Concerns
5- 1 of 36.8% is significantly below the sector top-quintile cutoff of 72.4%.
- 2Management quality score of 40 suggests potential weaknesses in .
- 3Financial health score of 37 indicates vulnerabilities, particularly with a current ratio of 1.47.
- 4Market cap decline of -13.41% relative to retained earnings raises questions about capital deployment effectiveness.
Price history
$14.84-69.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
DLocal operates a payments platform that facilitates online transactions across various industries, generating $1.09 billion in revenue. With a net income of $196.8 million and of $421.87 million, the company demonstrates solid cash generation capabilities. The unit economics appear favorable, with a free cash flow conversion of 2.14 times net income.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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