Obermatt

Magazine Luiza

SAO:MGLU3 · BRMGLUACNOR2
Multiline RetailLarge

360

42
EV / EBIT94
Price / Owner Earnings11
Owner Earnings Yield27
Dividend Yield37
Price/Sales94
EV / Gross Profit91
Price/Book92
Return on Capital49
Cash Return on Capital25
Return on Equity34
EBIT Margin31
Gross Profitability44
Cash Conversion100
Accruals97
Owner Earnings Margin25
Sales growth25
Profit Growth44
Long-Term EPS Growth98
Owner Earnings Growth17
Reinvestment66
Price momentum10
Debt load34
Refinancing70
Debt Payback6
Liquidity21
Analyst ratings5
Opinion Changes50
Price Target Upside92
Market mood3
Value Creation6/20not creating value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Magazine Luiza doesn't consistently earn more than its cost of capital, so it isn't yet creating shareholder value.

Profile

CountryBrazil
IndustryMultiline Retail
SizeLarge
TypePublic Company
ExchangeBOVESPA
Employees13,590
ISINBRMGLUACNOR2
Last UpdateApr 2, 2026
Themes
Online PaymentsFintechLifestyleSoftware DevelopmentFast-Moving Consumer GoodsE-CommerceE-Commerce PlatformsHome AppliancesRetailRetail TechnologyShopping

Description

Magazine Luiza S.A. engages in the retail sale of consumer goods. The company operates primarily in the retail sector, with a focus on the sale of a wide range of consumer goods, including furniture, utensils, and domestic and personal appliances. B…

Analysis

Middle-of-the-road

Magazine Luiza S.A. sits in the middle of our grid: average quality, average price, no obvious signal in either direction.

On valuation, the picture is expensive. The owner-earnings multiple stands at 29.7×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 12% a year, against analyst forecasts of 46%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is stretched. The company scores 6/20 on our value-creation score: not creating value.

Flags to be aware of: The financial cushion is thinner than comfortable. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
17
2023202420252026

All-time high

26

Jan 2025

All-time low

12

Jan 2024

Average rank

20

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
94
91
79
56
Price/Earnings
62
42
9
6
Price/Book
92
100
80
58
Dividend Yield
37
16
19
7
Value (overall)
65
71
41
27

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →