Magazine Luiza
Market Cap
R$164.6b
Last Updated
2021/01/21 22:00 UTC
Data Sources
Company Financials +
Executive Summary
Magazine Luiza S.A. engages in the retail sale of consumer goods. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with excellent balance sheet.
Similar Companies
Share Price & News
How has Magazine Luiza's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGLU3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MGLU3's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
7.3%
MGLU3
6.1%
BR Multiline Retail
-0.7%
BR Market
1 Year Return
80.0%
MGLU3
27.3%
BR Multiline Retail
0.8%
BR Market
Return vs Industry: MGLU3 exceeded the BR Multiline Retail industry which returned 27.3% over the past year.
Return vs Market: MGLU3 exceeded the BR Market which returned 0.8% over the past year.
Shareholder returns
| MGLU3 | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.3% | 6.1% | -0.7% |
| 30 Day | 1.2% | 1.3% | 4.9% |
| 90 Day | -1.8% | -1.2% | 16.8% |
| 1 Year | 80.4%80.0% | 28.0%27.3% | 3.5%0.8% |
| 3 Year | 919.3%906.0% | 232.3%223.7% | 54.4%37.8% |
| 5 Year | 51,850.7%50,622.2% | 557.7%528.7% | 219.0%164.3% |
Long-Term Price Volatility Vs. Market
How volatile is Magazine Luiza's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Here's What To Make Of Magazine Luiza's (BVMF:MGLU3) Returns On Capital3 weeks ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In Magazine Luiza S.A.'s (BVMF:MGLU3) Shares?1 month ago | Simply Wall St
Here's Why Magazine Luiza (BVMF:MGLU3) Has A Meaningful Debt BurdenValuation
Is Magazine Luiza undervalued compared to its fair value and its price relative to the market?
506.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MGLU3 (R$25.46) is trading above our estimate of fair value (R$7.7)
Significantly Below Fair Value: MGLU3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MGLU3 is poor value based on its PE Ratio (507x) compared to the XS Multiline Retail industry average (51x).
PE vs Market: MGLU3 is poor value based on its PE Ratio (507x) compared to the BR market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: MGLU3 is poor value based on its PEG Ratio (10.8x)
Price to Book Ratio
PB vs Industry: MGLU3 is overvalued based on its PB Ratio (22.4x) compared to the BR Multiline Retail industry average (3.8x).
Next Steps
Future Growth
How is Magazine Luiza forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
47.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGLU3's forecast earnings growth (47% per year) is above the savings rate (9.9%).
Earnings vs Market: MGLU3's earnings (47% per year) are forecast to grow faster than the BR market (27.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGLU3's revenue (20.8% per year) is forecast to grow faster than the BR market (10.4% per year).
High Growth Revenue: MGLU3's revenue (20.8% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MGLU3's Return on Equity is forecast to be low in 3 years time (19.9%).
Next Steps
Past Performance
How has Magazine Luiza performed over the past 5 years?
44.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGLU3 has a high level of non-cash earnings.
Growing Profit Margin: MGLU3's current net profit margins (1.3%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: MGLU3's earnings have grown significantly by 44.8% per year over the past 5 years.
Accelerating Growth: MGLU3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MGLU3 had negative earnings growth (-63.9%) over the past year, making it difficult to compare to the Multiline Retail industry average (-59.7%).
Return on Equity
High ROE: MGLU3's Return on Equity (4.6%) is considered low.
Next Steps
Financial Health
How is Magazine Luiza's financial position?
Financial Position Analysis
Short Term Liabilities: MGLU3's short term assets (R$14.4B) exceed its short term liabilities (R$10.7B).
Long Term Liabilities: MGLU3's short term assets (R$14.4B) exceed its long term liabilities (R$3.7B).
Debt to Equity History and Analysis
Debt Level: MGLU3's debt to equity ratio (22.7%) is considered satisfactory.
Reducing Debt: MGLU3's debt to equity ratio has reduced from 282.3% to 22.7% over the past 5 years.
Debt Coverage: MGLU3's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: MGLU3's interest payments on its debt are well covered by EBIT (3.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Magazine Luiza current dividend yield, its reliability and sustainability?
0.15%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MGLU3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MGLU3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MGLU3's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MGLU3's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MGLU3 is not paying a notable dividend for the BR market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MGLU3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Frederico Trajano Rodrigues (44 yo)
6yrs
Tenure
Mr. Frederico Trajano Inacio Rodrigues has been Chief Executive Officer and Member of Executive Board at Magazine Luiza S/A since 2015. He serves as an Independent Director at Itaú Unibanco Holding SA sinc...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Member of Executive Board | 6yrs | no data | no data | |
| Executive CFO | 11yrs | no data | no data | |
| Executive Director | 8yrs | no data | no data | |
| Chief Commercial & Operations Officer and Member of Executive Board | 5yrs | no data | 0.21% R$ 339.9m | |
| Executive Director of E-Commerce & Member of Executive Board | no data | no data | no data | |
| Executive Director of Infrastructure | no data | no data | no data | |
| People Management Executive Officer & Member of Executive Board | no data | no data | no data | |
| Executive Commercial Officer & Member of Executive Board | no data | no data | no data | |
| Information Technology Executive Officer & Member of Executive Board | no data | no data | no data | |
| Executive Director of Marketplace & Member of Management Board | no data | no data | no data | |
| E-commerce Commercial Executive Officer & Member of Management Board | no data | no data | no data | |
| Executive Director of Clients & Integration and Member of Executive Board | 0.50yr | no data | no data |
6.0yrs
Average Tenure
Experienced Management: MGLU3's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Board Member | 5yrs | no data | no data | |
| Vice Chairman | 4.75yrs | no data | no data | |
| Chairwoman | 4.75yrs | no data | no data | |
| Sitting Board Member | 12yrs | no data | no data | |
| Independent Board Member | 12yrs | no data | no data | |
| Chairman of Fiscal Council | 8.75yrs | no data | no data | |
| Member of Fiscal Council | 8.75yrs | no data | no data | |
| Member of Fiscal Council | 5yrs | no data | no data | |
| Independent Board Member | no data | no data | no data | |
| Independent Board Member | 4yrs | no data | no data | |
| Member of Fiscal Council | no data | no data | no data | |
| Member of Fiscal Council | no data | no data | no data |
5.0yrs
Average Tenure
Experienced Board: MGLU3's board of directors are considered experienced (5 years average tenure).
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
Magazine Luiza S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Magazine Luiza S.A.
- Ticker: MGLU3
- Exchange: BOVESPA
- Founded: 1957
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: R$164.617b
- Shares outstanding: 6.48b
- Website: https://www.magazineluiza.com.br
Number of Employees
Location
- Magazine Luiza S.A.
- Rua Arnulfo de Lima, nº 2.385
- Vila Santa Cruz
- Franca
- São Paulo
- 14403-471
- Brazil
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGLU3 | BOVESPA (Bolsa de Valores de Sao Paulo) | Yes | Common Stock | BR | BRL | May 2011 |
| MGLU.Y | OTCPK (Pink Sheets LLC) | ADS | US | USD | Aug 2020 |
Biography
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 sells technology products,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 22:00 |
| 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.