Magazine Luiza S.A.

$ 4.62 2.67 %

Magazine Luiza S.A. operates as a diverse enterprise primarily involved in the retail of consumer goods, with operations spanning retail, financial services, insurance, and additional business solutions. The company's extensive product selection encompasses technology, home appliances, electronics, mobile devices, furniture, gifts, and toys. Beyond traditional sales, Magazine Luiza also offers credit options and enhanced product warranties to its customers. Its financial activities further extend to consumer loans and consortium schemes for purchasing vehicles, motorcycles, household items, and real estate. Through its online channels, the firm markets an array of perfumes, cosmetics, sporting goods, and fashion products. Moreover, it provides integration, logistics, and technological support, while also managing connections between vendors and various marketplace platforms. The company maintains a significant physical presence with 1,481 stores and 26 logistics hubs. Founded in 1957 and based in Franca, Brazil, Magazine Luiza S.A. is a subsidiary of LTD Administração e Participação S.A.

CEO: Frederico Trajano Inacio Rodrigues - https://www.magazineluiza.com.br

Price objectif

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Recommandation

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DCF

$ 36.64

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MGLU3.SA vs S&P500

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Quick ratio

0.67

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

25.67

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

0.18

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

1.22 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

-2.53 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

11.54

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.76

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

19.34

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

164.70 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
1.31 indicates a high risk of bankruptcy
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Cash / Debt

Cash Ratio
0.08 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.23 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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