FMP

FMP

DLocal Limited (NASDAQ:DLO): A Leader in Financial Technology and Capital Efficiency

  • DLocal's Return on Invested Capital (ROIC) of 24.86% significantly surpasses its Weighted Average Cost of Capital (WACC) of 9.91%, indicating efficient capital utilization.
  • Competitors like Global-e Online Ltd. (GLBE) and Marqeta, Inc. (MQ) show negative ROIC, highlighting inefficiencies in capital use.
  • DLocal stands out with a ROIC to WACC ratio of 2.51, demonstrating superior performance in generating returns on invested capital.

DLocal Limited (NASDAQ:DLO) is a prominent player in the financial technology sector, specializing in cross-border payments and financial services. The company facilitates seamless transactions for global merchants in emerging markets. DLocal's competitors include Global-e Online Ltd. (GLBE), Marqeta, Inc. (MQ), Confluent, Inc. (CFLT), monday.com Ltd. (MNDY), and Doximity, Inc. (DOCS), each operating in various niches within the tech and financial services industries.

DLocal's Return on Invested Capital (ROIC) of 24.86% significantly surpasses its Weighted Average Cost of Capital (WACC) of 9.91%. This indicates that DLocal is effectively using its capital to generate returns, creating value for its shareholders. The ROIC to WACC ratio of 2.51 further emphasizes DLocal's efficient capital utilization compared to its peers.

In contrast, Global-e Online Ltd. (GLBE) struggles with a negative ROIC of -11.36% against a WACC of 9.35%, resulting in a ROIC to WACC ratio of -1.22. This suggests that GLBE is not generating sufficient returns to cover its cost of capital, highlighting inefficiencies in capital use.

Marqeta, Inc. (MQ) and Confluent, Inc. (CFLT) also face challenges, with ROICs of -17.09% and -22.05%, respectively. Their WACCs of 12.28% and 7.63% lead to negative ROIC to WACC ratios of -1.39 and -2.89. These figures indicate that both companies are struggling to generate returns above their capital costs.

Doximity, Inc. (DOCS) presents a more favorable picture with a ROIC of 15.86% and a WACC of 10.28%, resulting in a positive ROIC to WACC ratio of 1.54. While this shows good capital utilization, it still falls short of DLocal's superior performance. DLocal's ability to maintain a high ROIC relative to its WACC sets it apart as a leader in capital efficiency among its peers.