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Magazine Luiza S.A.BOVESPA:MGLU3 Stock Report

Market Cap R$7.3b
Share Price
R$9.84
n/a
1Y27.2%
7D-6.4%
Portfolio Value
​
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Magazine Luiza S.A.

BOVESPA:MGLU3 Stock Report

Market Cap: R$7.3b

Magazine Luiza (MGLU3) Stock Overview

Engages in the retail sale of consumer goods. More details

MGLU3 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends4/6

Rewards

Trading at 26.6% below our estimate of its fair value

Earnings are forecast to grow 29.56% per year

Risk Analysis

Large one-off items impacting financial results

Unstable dividend track record

Volatile share price over the past 3 months compared to the BR market


MGLU3 Community Fair Values

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See what 13 others think this stock is worth. Follow their fair value or set your own to get alerts.

MGLU3 logo
Magazine Luiza

Brazil Digital Finance And E-Commerce Will Accelerate Omnichannel Retail

Key Takeaways Expansion into digital financial services and unified omnichannel platforms positions the company for sustained margin and market share gains beyond current expectations. Accelerating digital adoption, new tech initiatives, and strategic partnerships could unlock fresh revenue streams and drive rapid long-term growth in an evolving retail landscape.
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R$15
FV
34.4% undervalued intrinsic discount
6.77%
Revenue growth p.a.
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0users have followed this narrative
MGLU3 logo
Magazine Luiza

Brazil Online Retail And Fintech Integration Will Reshape Digital Commerce

Key Takeaways Growing e-commerce presence, fintech expansion, and advanced logistics are set to strengthen revenue and operational efficiency as Brazil's digital retail market matures. Effective cost management and focus on profitable growth should support margin improvement and earnings resilience amid favorable macroeconomic trends.
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R$9.8
FV
0.4% overvalued intrinsic discount
5.03%
Revenue growth p.a.
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9users have followed this narrative
MGLU3 logo
Magazine Luiza

Amazon And Alibaba Will Drive Cost Pressures And Erode Margins

Key Takeaways Intensifying competition from global e-commerce giants and high digital marketing costs are pressuring Magazine Luiza's market share, margins, and earnings growth. Ongoing reliance on promotions, rising capital expenditures, and expansion into financial services are stressing profitability, cash flow, and increasing long-term credit risk.
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R$5.5
FV
78.9% overvalued intrinsic discount
3.93%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
0users have followed this narrative
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Magazine Luiza S.A. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Magazine Luiza
Historical stock prices
Current Share PriceR$9.87
52 Week HighR$12.13
52 Week LowR$5.71
Beta1.31
1 Month Change2.92%
3 Month Change-8.10%
1 Year Change27.19%
3 Year Change-62.18%
5 Year Change-96.05%
Change since IPO92.00%

Recent News & Updates

Why Investors Shouldn't Be Surprised By Magazine Luiza S.A.'s (BVMF:MGLU3) 27% Share Price Surge

Nov 26
Why Investors Shouldn't Be Surprised By Magazine Luiza S.A.'s (BVMF:MGLU3) 27% Share Price Surge

Magazine Luiza's (BVMF:MGLU3) Profits May Not Reveal Underlying Issues

Nov 18
Magazine Luiza's (BVMF:MGLU3) Profits May Not Reveal Underlying Issues

Recent updates

Why Investors Shouldn't Be Surprised By Magazine Luiza S.A.'s (BVMF:MGLU3) 27% Share Price Surge

Nov 26
Why Investors Shouldn't Be Surprised By Magazine Luiza S.A.'s (BVMF:MGLU3) 27% Share Price Surge

Magazine Luiza's (BVMF:MGLU3) Profits May Not Reveal Underlying Issues

Nov 18
Magazine Luiza's (BVMF:MGLU3) Profits May Not Reveal Underlying Issues

Is Magazine Luiza S.A. (BVMF:MGLU3) Potentially Undervalued?

Nov 12
Is Magazine Luiza S.A. (BVMF:MGLU3) Potentially Undervalued?

Magazine Luiza (BVMF:MGLU3) Has A Somewhat Strained Balance Sheet

Oct 21
Magazine Luiza (BVMF:MGLU3) Has A Somewhat Strained Balance Sheet

Magazine Luiza S.A.'s (BVMF:MGLU3) Shares Climb 32% But Its Business Is Yet to Catch Up

Sep 07
Magazine Luiza S.A.'s (BVMF:MGLU3) Shares Climb 32% But Its Business Is Yet to Catch Up

Magazine Luiza's (BVMF:MGLU3) Returns On Capital Are Heading Higher

Aug 31
Magazine Luiza's (BVMF:MGLU3) Returns On Capital Are Heading Higher

Getting In Cheap On Magazine Luiza S.A. (BVMF:MGLU3) Is Unlikely

Jul 22
Getting In Cheap On Magazine Luiza S.A. (BVMF:MGLU3) Is Unlikely

These 4 Measures Indicate That Magazine Luiza (BVMF:MGLU3) Is Using Debt Extensively

Jul 01
These 4 Measures Indicate That Magazine Luiza (BVMF:MGLU3) Is Using Debt Extensively

What Does Magazine Luiza S.A.'s (BVMF:MGLU3) Share Price Indicate?

Jun 10
What Does Magazine Luiza S.A.'s (BVMF:MGLU3) Share Price Indicate?

We Think Magazine Luiza's (BVMF:MGLU3) Robust Earnings Are Conservative

May 19
We Think Magazine Luiza's (BVMF:MGLU3) Robust Earnings Are Conservative

Magazine Luiza's (BVMF:MGLU3) Returns Have Hit A Wall

Apr 30
Magazine Luiza's (BVMF:MGLU3) Returns Have Hit A Wall

Revenues Not Telling The Story For Magazine Luiza S.A. (BVMF:MGLU3) After Shares Rise 62%

Apr 04
Revenues Not Telling The Story For Magazine Luiza S.A. (BVMF:MGLU3) After Shares Rise 62%

Magazine Luiza (BVMF:MGLU3) Has A Somewhat Strained Balance Sheet

Mar 11
Magazine Luiza (BVMF:MGLU3) Has A Somewhat Strained Balance Sheet
User avatar

Partnering With Alibaba Will Increase Online Sales Volume In Future

Magalu's ecosystem consolidation and strategic acquisitions aim to diversify revenue streams, reduce volatility, and positively impact future margins and earnings.

There's Reason For Concern Over Magazine Luiza S.A.'s (BVMF:MGLU3) Massive 31% Price Jump

Feb 18
There's Reason For Concern Over Magazine Luiza S.A.'s (BVMF:MGLU3) Massive 31% Price Jump

Is It Time To Consider Buying Magazine Luiza S.A. (BVMF:MGLU3)?

Jan 31
Is It Time To Consider Buying Magazine Luiza S.A. (BVMF:MGLU3)?

Magazine Luiza (BVMF:MGLU3) Is Reinvesting At Lower Rates Of Return

Jan 10
Magazine Luiza (BVMF:MGLU3) Is Reinvesting At Lower Rates Of Return

Magazine Luiza S.A. (BVMF:MGLU3) Shares May Have Slumped 27% But Getting In Cheap Is Still Unlikely

Dec 19
Magazine Luiza S.A. (BVMF:MGLU3) Shares May Have Slumped 27% But Getting In Cheap Is Still Unlikely

Does Magazine Luiza (BVMF:MGLU3) Have A Healthy Balance Sheet?

Dec 08
Does Magazine Luiza (BVMF:MGLU3) Have A Healthy Balance Sheet?

Solid Earnings Reflect Magazine Luiza's (BVMF:MGLU3) Strength As A Business

Nov 17
Solid Earnings Reflect Magazine Luiza's (BVMF:MGLU3) Strength As A Business

Magazine Luiza S.A.'s (BVMF:MGLU3) 26% Dip Still Leaving Some Shareholders Feeling Restless Over Its P/SRatio

Sep 24
Magazine Luiza S.A.'s (BVMF:MGLU3) 26% Dip Still Leaving Some Shareholders Feeling Restless Over Its P/SRatio

Investors Could Be Concerned With Magazine Luiza's (BVMF:MGLU3) Returns On Capital

Sep 18
Investors Could Be Concerned With Magazine Luiza's (BVMF:MGLU3) Returns On Capital

These 4 Measures Indicate That Magazine Luiza (BVMF:MGLU3) Is Using Debt Extensively

Aug 18
These 4 Measures Indicate That Magazine Luiza (BVMF:MGLU3) Is Using Debt Extensively

Is Now An Opportune Moment To Examine Magazine Luiza S.A. (BVMF:MGLU3)?

Jul 15
Is Now An Opportune Moment To Examine Magazine Luiza S.A. (BVMF:MGLU3)?

More Unpleasant Surprises Could Be In Store For Magazine Luiza S.A.'s (BVMF:MGLU3) Shares After Tumbling 26%

Jun 05
More Unpleasant Surprises Could Be In Store For Magazine Luiza S.A.'s (BVMF:MGLU3) Shares After Tumbling 26%

Some Magazine Luiza S.A. (BVMF:MGLU3) Shareholders Look For Exit As Shares Take 28% Pounding

Apr 18
Some Magazine Luiza S.A. (BVMF:MGLU3) Shareholders Look For Exit As Shares Take 28% Pounding

Is Magazine Luiza (BVMF:MGLU3) A Risky Investment?

Mar 03
Is Magazine Luiza (BVMF:MGLU3) A Risky Investment?

Be Wary Of Magazine Luiza (BVMF:MGLU3) And Its Returns On Capital

Feb 10
Be Wary Of Magazine Luiza (BVMF:MGLU3) And Its Returns On Capital

Pinning Down Magazine Luiza S.A.'s (BVMF:MGLU3) P/S Is Difficult Right Now

Dec 28
Pinning Down Magazine Luiza S.A.'s (BVMF:MGLU3) P/S Is Difficult Right Now

Is It Time To Consider Buying Magazine Luiza S.A. (BVMF:MGLU3)?

Dec 07
Is It Time To Consider Buying Magazine Luiza S.A. (BVMF:MGLU3)?

These 4 Measures Indicate That Magazine Luiza (BVMF:MGLU3) Is Using Debt Extensively

Nov 14
These 4 Measures Indicate That Magazine Luiza (BVMF:MGLU3) Is Using Debt Extensively

Magazine Luiza (BVMF:MGLU3) Will Be Hoping To Turn Its Returns On Capital Around

Oct 22
Magazine Luiza (BVMF:MGLU3) Will Be Hoping To Turn Its Returns On Capital Around

Magazine Luiza (BVMF:MGLU3) Takes On Some Risk With Its Use Of Debt

Aug 08
Magazine Luiza (BVMF:MGLU3) Takes On Some Risk With Its Use Of Debt

There Are Reasons To Feel Uneasy About Magazine Luiza's (BVMF:MGLU3) Returns On Capital

Jul 17
There Are Reasons To Feel Uneasy About Magazine Luiza's (BVMF:MGLU3) Returns On Capital

Shareholder Returns

MGLU3BR Multiline RetailBR Market
7D-6.4%1.9%1.0%
1Y27.2%40.0%17.4%

Return vs Industry: MGLU3 underperformed the BR Multiline Retail industry which returned 40% over the past year.

Return vs Market: MGLU3 exceeded the BR Market which returned 17.4% over the past year.

Price Volatility

Is MGLU3's price volatile compared to industry and market?
MGLU3 volatility
MGLU3 Average Weekly Movement8.2%
Multiline Retail Industry Average Movement4.0%
Market Average Movement4.5%
10% most volatile stocks in BR Market9.1%
10% least volatile stocks in BR Market2.1%

Stable Share Price: MGLU3's share price has been volatile over the past 3 months compared to the BR market.

Volatility Over Time: MGLU3's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of BR stocks.

About the Company

FoundedEmployeesCEOWebsite
1957n/aFrederico Trajano Rodrigueswww.magazineluiza.com.br

Magazine Luiza S.A. engages in the retail sale of consumer goods. It operates through Retail, Financial Operations, Insurance Operations, and Other Services segments. The company also grants credit and provides extended warranties for its products.

Magazine Luiza S.A. Fundamentals Summary

How do Magazine Luiza's earnings and revenue compare to its market cap?
MGLU3 fundamental statistics
Market capR$7.28b
Earnings (TTM)R$367.82m
Revenue (TTM)R$38.34b
19.8x
P/E Ratio
0.2x
P/S Ratio

Is MGLU3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
MGLU3 income statement (TTM)
RevenueR$38.34b
Cost of RevenueR$26.59b
Gross ProfitR$11.75b
Other ExpensesR$11.38b
EarningsR$367.82m

Last Reported Earnings

Sep 30, 2025

Next Earnings Date

n/a

Earnings per share (EPS)0.50
Gross Margin30.65%
Net Profit Margin0.96%
Debt/Equity Ratio53.3%

How did MGLU3 perform over the long term?

See historical performance and comparison

Dividends

3.1%
Current Dividend Yield
61%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/15 19:19
End of Day Share Price 2025/12/12 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Magazine Luiza S.A. is covered by 22 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andréa AznarBB Banco de Investimento S.A.
Georgia JorgeBB Banco de Investimento S.A.
Robert Ford AguilarBofA Global Research