Lojas Renner
Market Cap
R$34.2b
Last Updated
2021/01/21 22:02 UTC
Data Sources
Company Financials +
Executive Summary
Lojas Renner S.A., together with its subsidiaries, engages in the retail trading of clothing, sports products, shoes, accessories, and perfumery in Brazil, Uruguay, and Argentina. More Details
Snowflake Analysis
Solid track record with reasonable growth potential and pays a dividend.
Similar Companies
Share Price & News
How has Lojas Renner's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LREN3 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: LREN3's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of BR stocks.
Market Performance
7 Day Return
-2.3%
LREN3
6.1%
BR Multiline Retail
-0.7%
BR Market
1 Year Return
-30.4%
LREN3
27.3%
BR Multiline Retail
0.8%
BR Market
Return vs Industry: LREN3 underperformed the BR Multiline Retail industry which returned 27.3% over the past year.
Return vs Market: LREN3 underperformed the BR Market which returned 0.8% over the past year.
Shareholder returns
| LREN3 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | 6.1% | -0.7% |
| 30 Day | -1.8% | 1.3% | 4.9% |
| 90 Day | 3.4% | -1.2% | 16.8% |
| 1 Year | -29.8%-30.4% | 28.0%27.3% | 3.5%0.8% |
| 3 Year | 29.5%25.1% | 232.3%223.7% | 54.4%37.8% |
| 5 Year | 223.9%202.5% | 557.7%528.7% | 219.0%164.3% |
Long-Term Price Volatility Vs. Market
How volatile is Lojas Renner's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Does Lojas Renner S.A.'s (BVMF:LREN3) Share Price Indicate?2 weeks ago | Simply Wall St
Lojas Renner (BVMF:LREN3) Is Growing Earnings But Are They A Good Guide?1 month ago | Simply Wall St
Is Lojas Renner (BVMF:LREN3) Likely To Turn Things Around?Valuation
Is Lojas Renner undervalued compared to its fair value and its price relative to the market?
26.56x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LREN3 (R$42.37) is trading above our estimate of fair value (R$29.15)
Significantly Below Fair Value: LREN3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LREN3 is good value based on its PE Ratio (26.6x) compared to the XS Multiline Retail industry average (51x).
PE vs Market: LREN3 is poor value based on its PE Ratio (26.6x) compared to the BR market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: LREN3 is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: LREN3 is overvalued based on its PB Ratio (6.4x) compared to the BR Multiline Retail industry average (3.8x).
Next Steps
Future Growth
How is Lojas Renner forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
12.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LREN3's forecast earnings growth (12.2% per year) is above the savings rate (9.9%).
Earnings vs Market: LREN3's earnings (12.2% per year) are forecast to grow slower than the BR market (27.3% per year).
High Growth Earnings: LREN3's earnings are forecast to grow, but not significantly.
Revenue vs Market: LREN3's revenue (20.7% per year) is forecast to grow faster than the BR market (10.4% per year).
High Growth Revenue: LREN3's revenue (20.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LREN3's Return on Equity is forecast to be high in 3 years time (20.1%)
Next Steps
Past Performance
How has Lojas Renner performed over the past 5 years?
18.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LREN3 has a high level of non-cash earnings.
Growing Profit Margin: LREN3's current net profit margins (16.6%) are higher than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: LREN3's earnings have grown by 18.8% per year over the past 5 years.
Accelerating Growth: LREN3's earnings growth over the past year (25%) exceeds its 5-year average (18.8% per year).
Earnings vs Industry: LREN3 earnings growth over the past year (25%) exceeded the Multiline Retail industry -59.7%.
Return on Equity
High ROE: LREN3's Return on Equity (24%) is considered high.
Next Steps
Financial Health
How is Lojas Renner's financial position?
Financial Position Analysis
Short Term Liabilities: LREN3's short term assets (R$7.3B) exceed its short term liabilities (R$4.8B).
Long Term Liabilities: LREN3's short term assets (R$7.3B) exceed its long term liabilities (R$2.9B).
Debt to Equity History and Analysis
Debt Level: LREN3's debt to equity ratio (57.4%) is considered high.
Reducing Debt: LREN3's debt to equity ratio has reduced from 86.3% to 57.4% over the past 5 years.
Debt Coverage: LREN3's debt is not well covered by operating cash flow (16.2%).
Interest Coverage: LREN3 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Lojas Renner current dividend yield, its reliability and sustainability?
1.64%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LREN3's dividend (1.64%) is higher than the bottom 25% of dividend payers in the BR market (0.95%).
High Dividend: LREN3's dividend (1.64%) is low compared to the top 25% of dividend payers in the BR market (5%).
Stability and Growth of Payments
Stable Dividend: LREN3's dividend payments have been volatile in the past 10 years.
Growing Dividend: LREN3's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.1%), LREN3's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LREN3's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Fabio Faccio (48 yo)
1.75yrs
Tenure
Mr. Fabio Adegas Faccio is the Chief Executive Officer of Lojas Renner S.A. since April 18, 2019 and as its Interim Chief Information Officer since June 2019. He was Chief Product Officer of Lojas Renner S...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Interim Chief Information Officer | 1.75yrs | no data | no data | |
| CFO & Investor Relations Officer | 0.33yr | no data | no data | |
| Chief Operating Officer | 2yrs | no data | no data | |
| Chief Human Resources Officer | 14.08yrs | no data | no data | |
| Chief Product Officer | 1.75yrs | no data | no data | |
| Investor Relations & New Businesses Officer | no data | no data | no data | |
| Investor Relations Consultant | no data | no data | no data | |
| Controller Manager | no data | no data | no data |
1.8yrs
Average Tenure
52yo
Average Age
Experienced Management: LREN3's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Vice-Chairman | 1.75yrs | no data | no data | |
| Chairman | 1.75yrs | no data | no data | |
| Independent Director | 5.75yrs | no data | no data | |
| Independent Director | 6.42yrs | no data | no data | |
| Independent Director | 3.75yrs | no data | no data | |
| Independent Director | 3.75yrs | no data | no data | |
| Independent Director | 2.75yrs | no data | no data | |
| President of the Fiscal Council | 2yrs | no data | no data | |
| Independent Director | 1.5yrs | no data | no data | |
| Member of the Fiscal Council | 0.75yr | no data | no data | |
| Member of Fiscal Council | 0.42yr | no data | no data |
2.0yrs
Average Tenure
60yo
Average Age
Experienced Board: LREN3's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Lojas Renner S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lojas Renner S.A.
- Ticker: LREN3
- Exchange: BOVESPA
- Founded: 1965
- Industry: Department Stores
- Sector: Retail
- Market Cap: R$34.187b
- Shares outstanding: 793.01m
- Website: https://www.lojasrenner.com.br
Number of Employees
Location
- Lojas Renner S.A.
- Av. Joaquim Porto Villanova, 401
- Porto Alegre
- Rio Grande do Sul
- 91410-400
- Brazil
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LREN3 | BOVESPA (Bolsa de Valores de Sao Paulo) | Yes | Common Shares | BR | BRL | Sep 1994 |
| LREN.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Mar 2017 |
Biography
Lojas Renner S.A., together with its subsidiaries, engages in the retail trading of clothing, sports products, shoes, accessories, and perfumery in Brazil, Uruguay, and Argentina. The company operates in R...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 22:02 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.