BOVESPA:MGLU3

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Executive Summary

Magazine Luiza S.A. engages in the retail sale of consumer goods. More Details


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

MGLU3IndustryMarket
7 Day7.3%6.1%-0.7%
30 Day1.2%1.3%4.9%
90 Day-1.8%-1.2%16.8%
1 Year80.4%80.0%28.0%27.3%3.5%0.8%
3 Year919.3%906.0%232.3%223.7%54.4%37.8%
5 Year51,850.7%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

Valuation

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

NamePositionTenureCompensationOwnership
Frederico Trajano Rodrigues
CEO & Member of Executive Board6yrsno datano data
Roberto Rodrigues
Executive CFO11yrsno datano data
Maria de Oliveira
Executive Director8yrsno datano data
Fabrício Garcia
Chief Commercial & Operations Officer and Member of Executive Board5yrsno data0.21%
R$ 339.9m
Eduardo Galanternick
Executive Director of E-Commerce & Member of Executive Boardno datano datano data
Decio Sonohara
Executive Director of Infrastructureno datano datano data
Patricia Pugas
People Management Executive Officer & Member of Executive Boardno datano datano data
Luiz Rego
Executive Commercial Officer & Member of Executive Boardno datano datano data
André Fatala
Information Technology Executive Officer & Member of Executive Boardno datano datano data
Leandro Soares
Executive Director of Marketplace & Member of Management Boardno datano datano data
Julio Cesar Trajano
E-commerce Commercial Executive Officer & Member of Management Boardno datano datano data
Graciela Kumruian
Executive Director of Clients & Integration and Member of Executive Board0.50yrno datano data

6.0yrs

Average Tenure

Experienced Management: MGLU3's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Rossetti
Independent Board Member5yrsno datano data
Marcelo José e Silva
Vice Chairman4.75yrsno datano data
Luiza Helena Trajano Rodrigues
Chairwoman4.75yrsno datano data
Carlos Donzelli
Sitting Board Member12yrsno datano data
Ines de Souza
Independent Board Member12yrsno datano data
Inocêncio Teixeira Pinheiro
Chairman of Fiscal Council8.75yrsno datano data
Fabrício Gomes
Member of Fiscal Council8.75yrsno datano data
Thiago Jacinto
Member of Fiscal Council5yrsno datano data
Sílvio Romero de Meira
Independent Board Memberno datano datano data
Betania Tanure de Barros
Independent Board Member4yrsno datano data
Mauro Marangoni
Member of Fiscal Councilno datano datano data
Robinson Nogueira
Member of Fiscal Councilno datano datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGLU3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon StockBRBRLMay 2011
MGLU.YOTCPK (Pink Sheets LLC)ADSUSUSDAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 22:00
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.