Magazine LuizaBSP:MGLU3 +0.45%65 Gross Margin % is 30.77% as of Mar. 2026, which is 8% above its 10-year median of 28.55. GuruFocus rates BSP:MGLU3 with a GF Score™ of 65/100 and a GF Value™ of R$10.16 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Magazine Luiza ranks worse than 62.26% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Magazine Luiza had a gross margin of 30.77% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Magazine Luiza Gross Margin % Related Terms
Magazine Luiza Gross Margin % Historical Data
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The historical data trend for Magazine Luiza's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:MGLU3 vs CASY, WSM, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Magazine Luiza's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Magazine Luiza Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Magazine Luiza's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Magazine Luiza (BSP:MGLU3) has a Gross Margin % of 30.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Magazine Luiza and its competitors. This is near median its historical median of 28.55. Over the past decade, Magazine Luiza's Gross Margin % has ranged from 24.06 to 30.74. According to the industry distribution chart, Magazine Luiza ranks #693 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 62.3%.
Is Magazine Luiza's Gross Margin % too high?
Magazine Luiza's current Gross Margin % of 30.77% is near median its 10-year median of 28.55. Over the past 10 years, this metric has ranged from a low of 24.06 to a high of 30.74. The Retail - Cyclical industry median Gross Margin % is 36.26. Magazine Luiza's value of 30.77% is 15.1% below this industry median. Based on the distribution chart, Magazine Luiza ranks #693 out of 1113 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Magazine Luiza has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #693 out of 1113 companies for Gross Margin %. This places Magazine Luiza in the lower half of its industry. The industry median Gross Margin % is 36.26. Magazine Luiza's value of 30.77% is 15.1% below this benchmark. Historically, Magazine Luiza's own Gross Margin % has ranged from 24.06 to 30.74 over the past decade. While the company's 10-year median is 28.55 vs. the industry median of 36.26, Magazine Luiza has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magazine Luiza's current Gross Margin % of 30.77% is 15.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current Gross Margin % is 30.77%, which is near median its own 10-year median of 28.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magazine Luiza stock overvalued right now?
Based on GuruFocus' analysis, Magazine Luiza (BSP:MGLU3) is currently considered Possible Value Trap. The stock's GF Value™ is R$10.16, compared to a current price of R$4.44 — trading 56.3% below its estimated fair value. The current Gross Margin % is 30.77%, which is near median its 10-year median of 28.55 and 15.1% below the Retail - Cyclical industry median of 36.26. Magazine Luiza's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current Gross Margin % is 30.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Magazine Luiza (BSP:MGLU3) Overvalued in 2026?
Based on GuruFocus' analysis, Magazine Luiza stock appears to be undervalued.
The current stock price of R$4.44 is trading 56.3% below its estimated GF Value™ of R$10.16.
GuruFocus considers Magazine Luiza to be Possible Value Trap.
Key valuation signals for BSP:MGLU3:
Gross Margin %: 30.77% (near median its 10-year median of 28.55)
GF Value™: R$10.16 vs. price of R$4.44 (56.3% below fair value)
Industry Position: 15.1% below the Retail - Cyclical median (#693 of 1113)
No single metric tells the full story. See the BSP:MGLU3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magazine Luiza SA is engaged in retail sales, through physical stores, e-commerce, and its SuperApp, which is an application that offers products and services from its subsidiaries, as well as from commercial partners (sellers) through the marketplace platform. Its operations include four segments, Retail segment: substantially resale of goods and services in the Company's stores, electronic commerce, and food delivery management platform; Financial operations: through the joint venture Luizacred, whose main purpose is to provide credit to the Company's customers for the purchase of products; Insurance operations, and Other services. The company derives maximum revenue from the Retail segment.
65GF Score
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