Magazine Luiza S.A.
Magazine Luiza S.A. Fundamental Analysis
Magazine Luiza S.A. (MGLUY) shows weak financial fundamentals with a PE ratio of 21.19, profit margin of 0.96%, and ROE of 3.28%. The company generates $40.1B in annual revenue with moderate year-over-year growth of 3.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MGLUY's fundamental strength across five key dimensions:
Efficiency Score
WeakMGLUY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMGLUY trades at attractive valuation levels.
Growth Score
WeakMGLUY faces weak or negative growth trends.
Financial Health Score
ExcellentMGLUY maintains a strong and stable balance sheet.
Profitability Score
WeakMGLUY struggles to sustain strong margins.
Key Financial Metrics
Is MGLUY Expensive or Cheap?
P/E Ratio
MGLUY trades at 21.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MGLUY's PEG of -0.71 indicates potential undervaluation.
Price to Book
The market values Magazine Luiza S.A. at 0.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.04 times EBITDA. This is generally considered low.
How Well Does MGLUY Make Money?
Net Profit Margin
For every $100 in sales, Magazine Luiza S.A. keeps $0.96 as profit after all expenses.
Operating Margin
Core operations generate 4.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.28 in profit for every $100 of shareholder equity.
ROA
Magazine Luiza S.A. generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Magazine Luiza S.A. generates strong operating cash flow of $24.92B, reflecting robust business health.
Free Cash Flow
Magazine Luiza S.A. generates strong free cash flow of $24.12B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $124.56 in free cash annually.
FCF Yield
MGLUY converts 2.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How MGLUY Stacks Against Its Sector Peers
| Metric | MGLUY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.19 | 24.85 | Better (Cheaper) |
| ROE | 3.28% | 1165.00% | Weak |
| Net Margin | 0.96% | 749.00% | Weak |
| Debt/Equity | 0.85 | 0.76 | Neutral |
| Current Ratio | 1.26 | 9.23 | Neutral |
| ROA | 0.99% | 1271.00% | Weak |
MGLUY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Magazine Luiza S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-54.17%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
547.82%
Industry Style: Cyclical, Growth, Discretionary
High Growth