BOVESPA:LREN3

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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.


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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

LREN3IndustryMarket
7 Day-2.3%6.1%-0.7%
30 Day-1.8%1.3%4.9%
90 Day3.4%-1.2%16.8%
1 Year-29.8%-30.4%28.0%27.3%3.5%0.8%
3 Year29.5%25.1%232.3%223.7%54.4%37.8%
5 Year223.9%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

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

NamePositionTenureCompensationOwnership
Fabio Faccio
CEO & Interim Chief Information Officer1.75yrsno datano data
Alvaro Fontes de Azevedo
CFO & Investor Relations Officer0.33yrno datano data
Fabiana Taccola
Chief Operating Officer2yrsno datano data
Clarice Costa
Chief Human Resources Officer14.08yrsno datano data
Henry Costa
Chief Product Officer1.75yrsno datano data
Paula Picinini
Investor Relations & New Businesses Officerno datano datano data
Carla Sffair
Investor Relations Consultantno datano datano data
Luciano Agliardi
Controller Managerno datano datano 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

NamePositionTenureCompensationOwnership
Osvaldo Schirmer
Independent Vice-Chairman1.75yrsno datano data
Jose Gallo
Chairman1.75yrsno datano data
Carlos Fernando de Oliveira Souto
Independent Director5.75yrsno datano data
Fabio De Pinheiro
Independent Director6.42yrsno datano data
Juliana Munemori
Independent Director3.75yrsno datano data
Thomas Herrmann
Independent Director3.75yrsno datano data
Cristiane Edington
Independent Director2.75yrsno datano data
Joarez Piccinini
President of the Fiscal Council2yrsno datano data
Alexandre Gouvea
Independent Director1.5yrsno datano data
Estela Maris De Souza
Member of the Fiscal Council0.75yrno datano data
Roberto Decourt
Member of Fiscal Council0.42yrno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LREN3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLSep 1994
LREN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 22:02
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.