LWSA3 Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Locaweb Servicos De Internet SA - Alpha Spread

Locaweb Servicos De Internet SA
BOVESPA:LWSA3

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Locaweb Servicos De Internet SA Logo
Locaweb Servicos De Internet SA
BOVESPA:LWSA3
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Price: 4.06 BRL -1.69% Market Closed
Market Cap: 2.4B BRL
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Locaweb Servicos De Internet SA

Revenue
1.3B BRL
Cost of Revenue
-710.6m BRL
Gross Profit
623.4m BRL
Operating Expenses
-516.7m BRL
Operating Income
106.7m BRL
Other Expenses
-105.1m BRL
Net Income
1.6m BRL

Margins Comparison
Locaweb Servicos De Internet SA Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
BR
Locaweb Servicos De Internet SA
BOVESPA:LWSA3
2.4B BRL
47%
8%
0%
CA
Shopify Inc
NYSE:SHOP
107.4B USD
51%
11%
16%
US
Snowflake Inc.
NYSE:SNOW
41.6B USD
68%
-39%
-32%
US
Cloudflare Inc
NYSE:NET
31.9B USD
77%
-12%
-7%
US
GoDaddy Inc
NYSE:GDDY
23.1B USD
63%
18%
41%
US
MongoDB Inc
NASDAQ:MDB
21.6B USD
74%
-16%
-12%
US
Verisign Inc
NASDAQ:VRSN
18.4B USD
87%
68%
55%
US
Akamai Technologies Inc
NASDAQ:AKAM
15.8B USD
60%
19%
16%
US
Okta Inc
NASDAQ:OKTA
13.1B USD
76%
-9%
-6%
US
Twilio Inc
NYSE:TWLO
11.5B USD
51%
-5%
-14%
IL
Wix.Com Ltd
NASDAQ:WIX
9.2B USD
68%
2%
4%
Country BR
Market Cap 2.4B BRL
Gross Margin
47%
Operating Margin
8%
Net Margin
0%
Country CA
Market Cap 107.4B USD
Gross Margin
51%
Operating Margin
11%
Net Margin
16%
Country US
Market Cap 41.6B USD
Gross Margin
68%
Operating Margin
-39%
Net Margin
-32%
Country US
Market Cap 31.9B USD
Gross Margin
77%
Operating Margin
-12%
Net Margin
-7%
Country US
Market Cap 23.1B USD
Gross Margin
63%
Operating Margin
18%
Net Margin
41%
Country US
Market Cap 21.6B USD
Gross Margin
74%
Operating Margin
-16%
Net Margin
-12%
Country US
Market Cap 18.4B USD
Gross Margin
87%
Operating Margin
68%
Net Margin
55%
Country US
Market Cap 15.8B USD
Gross Margin
60%
Operating Margin
19%
Net Margin
16%
Country US
Market Cap 13.1B USD
Gross Margin
76%
Operating Margin
-9%
Net Margin
-6%
Country US
Market Cap 11.5B USD
Gross Margin
51%
Operating Margin
-5%
Net Margin
-14%
Country IL
Market Cap 9.2B USD
Gross Margin
68%
Operating Margin
2%
Net Margin
4%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Locaweb Servicos De Internet SA Competitors

Country Company Market Cap ROE ROA ROCE ROIC
BR
Locaweb Servicos De Internet SA
BOVESPA:LWSA3
2.4B BRL
0%
0%
3%
0%
CA
Shopify Inc
NYSE:SHOP
107.4B USD
15%
12%
9%
15%
US
Snowflake Inc.
NYSE:SNOW
41.6B USD
-22%
-14%
-25%
-35%
US
Cloudflare Inc
NYSE:NET
31.9B USD
-13%
-4%
-8%
-18%
US
GoDaddy Inc
NYSE:GDDY
23.1B USD
-703%
25%
17%
36%
US
MongoDB Inc
NASDAQ:MDB
21.6B USD
-20%
-8%
-12%
-38%
US
Verisign Inc
NASDAQ:VRSN
18.4B USD
-49%
53%
244%
112%
US
Akamai Technologies Inc
NASDAQ:AKAM
15.8B USD
14%
7%
10%
8%
US
Okta Inc
NASDAQ:OKTA
13.1B USD
-2%
-2%
-3%
-4%
US
Twilio Inc
NYSE:TWLO
11.5B USD
-6%
-5%
-2%
-3%
IL
Wix.Com Ltd
NASDAQ:WIX
9.2B USD
-29%
5%
5%
4%
Country BR
Market Cap 2.4B BRL
ROE
0%
ROA
0%
ROCE
3%
ROIC
0%
Country CA
Market Cap 107.4B USD
ROE
15%
ROA
12%
ROCE
9%
ROIC
15%
Country US
Market Cap 41.6B USD
ROE
-22%
ROA
-14%
ROCE
-25%
ROIC
-35%
Country US
Market Cap 31.9B USD
ROE
-13%
ROA
-4%
ROCE
-8%
ROIC
-18%
Country US
Market Cap 23.1B USD
ROE
-703%
ROA
25%
ROCE
17%
ROIC
36%
Country US
Market Cap 21.6B USD
ROE
-20%
ROA
-8%
ROCE
-12%
ROIC
-38%
Country US
Market Cap 18.4B USD
ROE
-49%
ROA
53%
ROCE
244%
ROIC
112%
Country US
Market Cap 15.8B USD
ROE
14%
ROA
7%
ROCE
10%
ROIC
8%
Country US
Market Cap 13.1B USD
ROE
-2%
ROA
-2%
ROCE
-3%
ROIC
-4%
Country US
Market Cap 11.5B USD
ROE
-6%
ROA
-5%
ROCE
-2%
ROIC
-3%
Country IL
Market Cap 9.2B USD
ROE
-29%
ROA
5%
ROCE
5%
ROIC
4%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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