BOVESPA:RENT3

Stock Analysis Report

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Executive Summary

Localiza Rent a Car S.A. engages in car rental and franchising activities. More Details


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

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 +/- 7% a week.

Volatility Over Time: RENT3's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

RENT3

-2.8%

BR Transportation

0.8%

BR Market


1 Year Return

55.6%

RENT3

5.8%

BR Transportation

-0.9%

BR Market

Return vs Industry: RENT3 exceeded the BR Transportation industry which returned 5.8% over the past year.

Return vs Market: RENT3 exceeded the BR Market which returned -0.9% over the past year.


Shareholder returns

RENT3IndustryMarket
7 Day-2.3%-2.8%0.8%
30 Day4.4%-2.5%3.8%
90 Day32.8%0.6%3.4%
1 Year56.9%55.6%6.4%5.8%2.3%-0.9%
3 Year239.7%229.6%126.9%122.4%53.1%36.7%
5 Year771.5%712.7%610.2%539.8%141.8%100.7%

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

Valuation

Is Localiza Rent a Car undervalued compared to its fair value and its price relative to the market?

56.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RENT3 (R$65.29) is trading above our estimate of fair value (R$4.23)

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 (56.2x) compared to the BR Transportation industry average (51.6x).

PE vs Market: RENT3 is poor value based on its PE Ratio (56.2x) compared to the BR market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: RENT3 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: RENT3 is overvalued based on its PB Ratio (8.6x) compared to the BR Transportation industry average (2.9x).


Next Steps

Future Growth

How is Localiza Rent a Car forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RENT3's forecast earnings growth (24.5% per year) is above the savings rate (10.7%).

Earnings vs Market: RENT3's earnings (24.5% per year) are forecast to grow slower than the BR market (27.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RENT3's revenue (23.2% per year) is forecast to grow faster than the BR market (10.4% per year).

High Growth Revenue: RENT3's revenue (23.2% 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 low in 3 years time (19.4%).


Next Steps

Past Performance

How has Localiza Rent a Car performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RENT3 has high quality earnings.

Growing Profit Margin: RENT3's current net profit margins (8.4%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: RENT3's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: RENT3's earnings growth over the past year (11.1%) is below its 5-year average (18.2% per year).

Earnings vs Industry: RENT3 earnings growth over the past year (11.1%) exceeded the Transportation industry -18.5%.


Return on Equity

High ROE: RENT3's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is Localiza Rent a Car's financial position?


Financial Position Analysis

Short Term Liabilities: RENT3's short term assets (R$5.9B) exceed its short term liabilities (R$2.7B).

Long Term Liabilities: RENT3's short term assets (R$5.9B) do not cover its long term liabilities (R$11.5B).


Debt to Equity History and Analysis

Debt Level: RENT3's debt to equity ratio (196.2%) is considered high.

Reducing Debt: RENT3's debt to equity ratio has increased from 131% to 196.2% over the past 5 years.

Debt Coverage: RENT3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: RENT3's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Localiza Rent a Car current dividend yield, its reliability and sustainability?

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RENT3's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.13%).

High Dividend: RENT3's dividend (0.63%) is low compared to the top 25% of dividend payers in the BR market (5.46%).


Stability and Growth of Payments

Stable Dividend: RENT3's dividends per share have been stable in the past 10 years.

Growing Dividend: RENT3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), RENT3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RENT3's dividends in 3 years are forecast to be well covered by earnings (26.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average board tenure


CEO

Eugênio Mattar (67 yo)

no data

Tenure

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...


Board Members

NamePositionTenureCompensationOwnership
Eugênio Mattar
CEO & Executive Directorno datano data5.17%
R$ 2.5b
Oscar De Bernardes Neto
Independent Chairmanno datano datano data
Aristides de Azevedo Newton
Member of Fiscal Councilno datano datano data
Marco Antônio Guimarães
Member of Fiscal Councilno datano datano data
Daltro Leite
Member of Fiscal Councilno datano datano data
Maria de Freitas Costa
Independent Director9.58yrsno datano data
Pedro de Godoy Bueno
Independent Director1.83yrsno datano data
Irlau Filho
Independent Director0.83yrno datano data
Paulo Antunes Veras
Independent Directorno datano datano data

5.7yrs

Average Tenure

70yo

Average Age

Experienced Board: RENT3's board of directors are considered experienced (5.7 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

Localiza Rent a Car S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Localiza Rent a Car S.A.
  • Ticker: RENT3
  • Exchange: BOVESPA
  • Founded: 1973
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: R$49.044b
  • Shares outstanding: 751.18m
  • Website: https://www.localizahertz.com

Number of Employees


Location

  • Localiza Rent a Car S.A.
  • Avenida Bernardo Vasconcelos, 377
  • Cachoeirinha
  • Belo Horizonte
  • Minas Gerais
  • 31150-900
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RENT3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLMay 2005
LZRF.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2012

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 18:11
End of Day Share Price2020/11/20 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.