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Locaweb Serviços de Internet (BOVESPA:LWSA3)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
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.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Locaweb Serviços de Internet stock research in summary

locaweb.com.br

ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), Locaweb Serviços de Internet (Internet Services & Infrastructure, Brazil) shares have above-average financial characteristics compared with similar stocks. Shares of Locaweb Serviços de Internet are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives), are safely financed (Safety Rank of 65, which means low debt burdens), but show below-average growth (Growth Rank of 17). ...read more

RECOMMENDATION: A Combined Rank of 63, is a 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 81) but low growth (Obermatt Growth Rank of 17) 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 81% 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	81
Growth Rank	17
Safety Rank	65
Combined Rank	63

Country	Brazil
Industry	Internet Services & Infrastructure
Index
Size class	Small

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

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Locaweb Serviços de Internet

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	44	68	79	81
GROWTH
GROWTH	15	23	9	17
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: 27-Mar-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. 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	81
GROWTH
GROWTH	15	23	9	17
SAFETY
SAFETY	28	61	67	65
COMBINED
COMBINED	6	50	42	63

Last update of combined financial performance: 27-Mar-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 81 (better than 81% 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 that are all above average for Locaweb Serviços de Internet. Price-to-Sales is 72 which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value for Locaweb Serviços de Internet's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 87% of alternatives, and this is 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. Compared with other companies in the same industry, dividend yields of Locaweb Serviços de Internet are expected to be higher than for 55% of all competitors (a Dividend Yield rank of 55). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a buy recommendation based on Locaweb Serviços de Internet's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Locaweb Serviços de Internet based on its detailed value metrics. 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	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	54	81	87
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	88	80	93	93
DIVIDEND YIELD
DIVIDEND YIELD	1	38	49	55
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	44	68	79	81

Last update of Value Rank: 27-Mar-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 17 (better than 17% compared with alternatives), Locaweb Serviços de Internet shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Locaweb Serviços de Internet. Sales Growth has a rank of 60 which means that currently, professionals expect the company to grow more than 60% of its competitors. Capital Growth is also above 19% of competitors with a rank of 66. But Profit Growth only has a rank of 19, which means that currently professionals expect the company to grow its profits less than 81% of its competitors. And Stock Returns have also been below average with a rank of only 5. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 17, is a sell recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. 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 is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	85	77	53	60
PROFIT GROWTH
PROFIT GROWTH	45	17	12	19
CAPITAL GROWTH
CAPITAL GROWTH	18	39	34	66
STOCK RETURNS
STOCK RETURNS	3	19	13	5
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	15	23	9	17

Last update of Growth Rank: 27-Mar-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, where all three are above average for Locaweb Serviços de Internet. Leverage is at 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors. Refinancing is at a rank of 59, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. Finally, Liquidity is also good at a rank of 50, which means that the company generates more profit to service its debt than 50% 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. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Locaweb Serviços de Internet but they 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	59
LIQUIDITY
LIQUIDITY	13	36	50	50
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	28	61	67	65

Last update of Safety Rank: 27-Mar-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: 27-Mar-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Locaweb Serviços de Internet.
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