Locaweb Serviços de Internet S.A.

LWSA3.SA

Software - Infrastructure · Technology

Price

R$3.88

-0.02 (-0.51%)

Market Cap

R$2.13B

Exchange

B3 S.A.

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count falling — buybacks

−4.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 578.4M (2021) → 551.0M (2025)

Locaweb is a Brazilian technology company that helps small and medium-sized businesses run their operations online. It offers web hosting, cloud services, e-commerce software, and digital marketing tools. It is one of the largest providers of online business solutions in Brazil, serving hundreds of thousands of small business customers across the country.

Locaweb makes money by charging monthly or annual subscription fees for its software and hosting services. It operates almost entirely in Brazil, which means its revenue is tied closely to the health of the Brazilian economy and the local currency. The company has grown partly through acquisitions, buying smaller software companies to expand its product lineup for e-commerce sellers. However, its operating margin is currently negative, meaning it spends more than it earns from operations, so the main risk is whether it can grow revenue fast enough to reach consistent profitability before its cash resources become strained.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+47.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

57.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$387M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Locaweb Serviços de Internet S.A. is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

48.4%

Healthy — 48.4% gross margin

Operating Margin

14.8%

Healthy — 14.8% operating margin

ROCE

2.3%

Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+7.4%

Steady sales growth (+7.4% YoY)

EPS YoY

-809.2%

Earnings shrinking (-809.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

23.0%

Converts sales into free cash efficiently (23.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

7.90%

Healthy income — 7.90% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

N/A

Data not available

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