By analyzing existing essential indicators between Dlocal and Oracle, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Oracle with a short position in Dlocal. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Dlocal is to check how much profit was generated for every dollar of assets it reports. Dlocal Ltd Cl utilizes its assets almost 10.73 percent, getting $0.11 for each dollar of assets held by the firm. A positive asset utilization denotes the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Dlocal shows how effective it operates for each dollar spent on its assets.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Dlocal. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Dlocal, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Dlocal's Liquidity
Dlocal
financial leverage refers to using borrowed capital as a funding source to finance Dlocal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dlocal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Dlocal's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Dlocal's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Dlocal's total debt and its cash.
Dlocal Gross Profit
Dlocal Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Dlocal previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Dlocal Gross Profit growth over the last 10 years. Please check Dlocal's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Dlocal
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Dlocal revenue. Based on the latest financial disclosure, Dlocal Ltd Cl reported 291.32
M of revenue. This is 92.85% lower than that of the Technology sector and significantly higher than that of the
Software—Infrastructure industry. The revenue for all United States stocks is 96.91% higher than that of Dlocal. As for Oracle we see revenue of 42.44
B, which is much higher than that of the Software—Infrastructure
| DLO | 291.32 Million | 0.68 |
| Sector | 0.0 | 0.0 |
| ORCL | 42.44 Billion | 99.32 |
Dlocal implied volatility may change after the slide
The total risk alpha is down to 0.54 as of today. Dlocal Ltd Cl shows above-average downside volatility for the selected time horizon. We advise investors to inspect Dlocal Ltd Cl further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Dlocal future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dlocal's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dlocal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On Dlocal
Whereas many other companies within the software—infrastructure industry are still a little expensive, even after the recent corrections, Dlocal may offer a potential longer-term growth to institutional investors. To conclude, as of the 22nd of August 2022, our present 90 days buy vs. sell advice on the company is
Strong Hold. We believe Dlocal is
undervalued with
close to average chance of distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Dlocal. Please refer to our
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