Is dLocal Ltd (DLO) Halal?

NASDAQ Technology Uruguay $3.6B
✓ HALAL
Confidence: 95/100
dLocal Ltd (DLO) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.6% against the AAOIFI threshold of 30%, dLocal Ltd comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Infrastructure), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.6%
/ 30%
9.6%
/ 30%
13.4%
/ 30%
3.79%
/ 5%
✓ HALAL
DJIM 1.6%
/ 33%
9.6%
/ 33%
13.4%
/ 33%
3.79%
/ 5%
✓ HALAL
MSCI 4.6%
/ 33%
28.2%
/ 33%
39.0%
/ 33%
3.79%
/ 5%
✗ NOT HALAL
S&P 1.6%
/ 33%
9.6%
/ 33%
13.4%
/ 33%
3.79%
/ 5%
✓ HALAL
FTSE 4.6%
/ 33%
28.2%
/ 33%
39.0%
/ 50%
3.79%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
18.9
Forward: 11.3
EPS
$0.65
Dividend Yield
158.0%
P/B Ratio
6.4
EV/EBITDA
12.8
EV: $2.9B
Revenue
$746M
Growth: 65.2%
Beta
1.1
Average volatility
Current Ratio
1.5

Profitability

Gross Margin 36.8%
Operating Margin 18.6%
Net Margin 18.0%
Return on Equity (ROE) 37.2%
Return on Assets (ROA) 10.1%

Cash Flow & Balance Sheet

Operating Cash Flow-$33M
Free Cash Flow-$55M
Total Debt$54M
Debt-to-Equity15.9
Current Ratio1.5
Total Assets$1.2B

Price & Trading

Last Close$12.36
50-Day MA$12.77
200-Day MA$13.12
Avg Volume1.3M
Beta1.1
52-Week Range
$7.61
$16.78

About dLocal Ltd (DLO)

CEO
Mr. Pedro Arnt
Employees
1,274
Sector
Technology
Industry
Software - Infrastructure
Country
Uruguay
Exchange
NASDAQ
Market Cap
$3.6B
Currency
USD

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.

Purification Calculator

As a halal stock with 3.79% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is dLocal Ltd (DLO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), dLocal Ltd is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is dLocal Ltd's debt ratio?

dLocal Ltd's debt ratio is 1.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 4.6%.

Does dLocal Ltd require dividend purification?

Yes, dLocal Ltd has an impermissible income ratio of 3.79%, which means 3.79% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are dLocal Ltd's key financial metrics?

dLocal Ltd has a market capitalization of $3.6B, trailing P/E ratio of 18.9, and revenue of $746M. The company maintains a gross margin of 36.8% and a net margin of 18.0%. Return on equity stands at 37.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.