Localiza Rent a Car S.A. engages in car rental and franchising activities. More Details
High growth potential with proven track record.
Share Price & News
How has Localiza Rent a Car's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RENT3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: RENT3's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: RENT3 exceeded the BR Transportation industry which returned 38.1% over the past year.
Return vs Market: RENT3 exceeded the BR Market which returned 41.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Localiza Rent a Car's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Localiza Rent a Car undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RENT3 (R$61.6) is trading above our estimate of fair value (R$7.05)
Significantly Below Fair Value: RENT3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RENT3 is poor value based on its PE Ratio (44.2x) compared to the BR Transportation industry average (29.2x).
PE vs Market: RENT3 is poor value based on its PE Ratio (44.2x) compared to the BR market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: RENT3 is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: RENT3 is overvalued based on its PB Ratio (7.7x) compared to the BR Transportation industry average (2.9x).
How is Localiza Rent a Car forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RENT3's forecast earnings growth (17.5% per year) is above the savings rate (9.3%).
Earnings vs Market: RENT3's earnings (17.5% per year) are forecast to grow faster than the BR market (13.6% per year).
High Growth Earnings: RENT3's earnings are forecast to grow, but not significantly.
Revenue vs Market: RENT3's revenue (22.6% per year) is forecast to grow faster than the BR market (8.8% per year).
High Growth Revenue: RENT3's revenue (22.6% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RENT3's Return on Equity is forecast to be high in 3 years time (21.1%)
How has Localiza Rent a Car performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RENT3 has high quality earnings.
Growing Profit Margin: RENT3's current net profit margins (10.2%) are higher than last year (8.2%).
Past Earnings Growth Analysis
Earnings Trend: RENT3's earnings have grown by 19.5% per year over the past 5 years.
Accelerating Growth: RENT3's earnings growth over the past year (25.7%) exceeds its 5-year average (19.5% per year).
Earnings vs Industry: RENT3 earnings growth over the past year (25.7%) underperformed the Transportation industry 25.7%.
Return on Equity
High ROE: RENT3's Return on Equity (17.3%) is considered low.
How is Localiza Rent a Car's financial position?
Financial Position Analysis
Short Term Liabilities: RENT3's short term assets (R$5.6B) exceed its short term liabilities (R$4.3B).
Long Term Liabilities: RENT3's short term assets (R$5.6B) do not cover its long term liabilities (R$10.1B).
Debt to Equity History and Analysis
Debt Level: RENT3's debt to equity ratio (175.2%) is considered high.
Reducing Debt: RENT3's debt to equity ratio has increased from 138.9% to 175.2% over the past 5 years.
Debt Coverage: RENT3's debt is not well covered by operating cash flow (4.6%).
Interest Coverage: RENT3's interest payments on its debt are well covered by EBIT (5.1x coverage).
What is Localiza Rent a Car current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RENT3's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.18%).
High Dividend: RENT3's dividend (0.56%) is low compared to the top 25% of dividend payers in the BR market (4.98%).
Stability and Growth of Payments
Stable Dividend: RENT3 is not paying a notable dividend for the BR market, therefore no need to check if payments are stable.
Growing Dividend: RENT3 is not paying a notable dividend for the BR market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: RENT3 is not paying a notable dividend for the BR market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RENT3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Eugênio Mattar (67 yo)
Mr. Eugênio Pacelli Mattar serves as the Chief Executive Officer at Localiza Rent a Car S.A. Mr. Mattar serves as a Vice President of Total Fleet S.A., Localiza Franchising S.A. and Prime Prestadora de Ser...
Experienced Board: RENT3's board of directors are considered experienced (6.2 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Localiza Rent a Car S.A.'s company bio, employee growth, exchange listings and data sources
- Name: Localiza Rent a Car S.A.
- Ticker: RENT3
- Exchange: BOVESPA
- Founded: 1973
- Industry: Trucking
- Sector: Transportation
- Market Cap: R$46.303b
- Shares outstanding: 751.67m
- Website: https://www.localizahertz.com
Number of Employees
- Localiza Rent a Car S.A.
- Avenida Bernardo Vasconcelos, 377
- Belo Horizonte
- Minas Gerais
Localiza Rent a Car S.A. engages in car rental and franchising activities. The company is also involved in selling decommissioned cars; providing car parking services; and managing car-related claims for i...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/06 00:08|
|End of Day Share Price||2021/05/05 00:00|
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.