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Locaweb Serviços de Internet (BOVESPA:LWSA3)

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Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

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Locaweb Serviços de Internet stock research in summary

locaweb.com.br

ANALYSIS: With an Obermatt Combined Rank of 83 (better than 83% compared with investment alternatives), Locaweb Serviços de Internet (Internet Services & Infrastructure, Brazil) shares have much better financial characteristics than comparable stocks. Shares of Locaweb Serviços de Internet are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), are safely financed (Safety Rank of 65, which means low debt burdens), but show below-average growth (Growth Rank of 43). ...read more

RECOMMENDATION: A Combined Rank of 83, is a strong buy recommendation based on Locaweb Serviços de Internet's financial characteristics. As the company Locaweb Serviços de Internet's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 43) while being safely financed (Obermatt Safety Rank of 65), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 75% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	43
Safety Rank	65
Combined Rank	83

Country	Brazil
Industry	Internet Services & Infrastructure
Index
Size class	X-Small

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Research History: Locaweb Serviços de Internet

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	44	68	79	75
GROWTH
GROWTH	15	23	9	43
SAFETY
SAFETY	28	61	67	65
SENTIMENT
SENTIMENT	30	14	20	^new
360° VIEW
360° VIEW	5	20	29	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Locaweb Serviços de Internet is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	44	68	79	75
GROWTH
GROWTH	15	23	9	43
SAFETY
SAFETY	28	61	67	65
COMBINED
COMBINED	6	50	42	83

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Locaweb Serviços de Internet the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2025, Locaweb Serviços de Internet shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Locaweb Serviços de Internet. Price-to-Sales (P/S) is 73, which means that the stock price compared with what market professionals expect for future sales is lower than for 73% of comparable companies, indicating a good value regarding Locaweb Serviços de Internet's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 77% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 93. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 37% of all competitors have even lower dividend yields than Locaweb Serviços de Internet (a Dividend Yield Rank of 37). 63% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on Locaweb Serviços de Internet's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	47	62	71	73
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	54	81	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	88	80	93	93
DIVIDEND YIELD
DIVIDEND YIELD	1	38	49	37
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	44	68	79	75

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Locaweb Serviços de Internet; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Locaweb Serviços de Internet shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Locaweb Serviços de Internet. While Sales Growth ranks at 92, professionals currently expect the company to grow more than 92% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 8, which means that, currently, professionals expect the company to grow its profits less than 92% of its competitors, and Capital Growth has a low rank of 28. Historic stock returns were also below average with a current Stock Returns rank of 47 which means that the stock returns have recently been below 53% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	85	77	53	92
PROFIT GROWTH
PROFIT GROWTH	45	17	12	8
CAPITAL GROWTH
CAPITAL GROWTH	18	39	34	28
STOCK RETURNS
STOCK RETURNS	3	19	13	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	15	23	9	43

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Locaweb Serviços de Internet.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 65 (better than 65% compared with alternatives), the company Locaweb Serviços de Internet has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Locaweb Serviços de Internet is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Locaweb Serviços de Internet. Leverage is at a rank of 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors. Liquidity is also good at a rank of 51, meaning the company generates more profit to service its debt than 51% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 43, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 65 (better than 65% compared with alternatives), Locaweb Serviços de Internet has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Locaweb Serviços de Internet. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Locaweb Serviços de Internet and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	36	76	76	78
REFINANCING
REFINANCING	88	60	65	43
LIQUIDITY
LIQUIDITY	13	36	50	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	28	61	67	65

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Locaweb Serviços de Internet and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	61	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	4	15	36	^new
PRO HOLDINGS
PRO HOLDINGS	61	10	12	^new
MARKET PULSE
MARKET PULSE	59	62	55	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	30	14	20	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Locaweb Serviços de Internet.
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