Localiza Rent A CarBSP:RENT4 +1.09%71 Gross Margin % is 27.15% as of Mar. 2026, which is 2% below its 10-year median of 27.66. GuruFocus rates BSP:RENT4 with a GF Score™ of 71/100 and a GF Value™ of R$53.66 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, Localiza Rent A Car ranks worse than 63.65% on this metric.
Localiza Rent A Car SA gross margin has been in long-term decline. The average rate of decline per year is -6.5%.
The historical rank and industry rank for Localiza Rent A Car's Gross Margin % or its related term are showing as below:
BSP:RENT4'
s Gross Margin % Range Over the Past 10 Years
Min: 23.48 Med: 27.66 Max: 43.1
Current: 26.39
During the past 13 years, the highestGross Margin % of Localiza Rent A Car was 43.10%. The lowest was 23.48%. And the median was 27.66%.
BSP:RENT4's Gross Margin % is ranked worse than 63.65% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs BSP:RENT4: 26.39
Localiza Rent A Car had a gross margin of 27.15% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Localiza Rent A Car was -6.50% per year.
Localiza Rent A Car (BSP:RENT4) Gross Margin % Explanation
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
Localiza Rent A Car had a gross margin of 27.15% 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.
Localiza Rent A Car Gross Margin % Related Terms
Localiza Rent A Car Gross Margin % Historical Data
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The historical data trend for Localiza Rent A Car'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:RENT4 vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Localiza Rent A Car'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.
Localiza Rent A Car Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car'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.
Localiza Rent A Car (BSP:RENT4) has a Gross Margin % of 27.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Localiza Rent A Car and its competitors. This is near median its historical median of 27.66. Over the past decade, Localiza Rent A Car's Gross Margin % has ranged from 23.48 to 43.10. According to the industry distribution chart, Localiza Rent A Car ranks #641 out of 1007 companies in the Business Services industry, placing it in the top 63.7%.
Is Localiza Rent A Car's Gross Margin % too high?
Localiza Rent A Car's current Gross Margin % of 27.15% is near median its 10-year median of 27.66. Over the past 10 years, this metric has ranged from a low of 23.48 to a high of 43.10. The Business Services industry median Gross Margin % is 34.46. Localiza Rent A Car's value of 27.15% is 21.2% below this industry median. Based on the distribution chart, Localiza Rent A Car ranks #641 out of 1007 companies in the Business Services industry, which is below the industry midpoint. Overall, Localiza Rent A Car has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Localiza Rent A Car's Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Localiza Rent A Car ranks #641 out of 1007 companies for Gross Margin %. This places Localiza Rent A Car in the lower half of its industry. The industry median Gross Margin % is 34.46. Localiza Rent A Car's value of 27.15% is 21.2% below this benchmark. Historically, Localiza Rent A Car's own Gross Margin % has ranged from 23.48 to 43.10 over the past decade. While the company's 10-year median is 27.66 vs. the industry median of 34.46, Localiza Rent A Car 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 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. Localiza Rent A Car's current Gross Margin % of 27.15% is 21.2% 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 Localiza Rent A Car and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Localiza Rent A Car's current Gross Margin % is 27.15%, which is near median its own 10-year median of 27.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Localiza Rent A Car stock overvalued right now?
Based on GuruFocus' analysis, Localiza Rent A Car (BSP:RENT4) is currently considered Modestly Undervalued. The stock's GF Value™ is R$53.66, compared to a current price of R$40.77 — trading 24% below its estimated fair value. The current Gross Margin % is 27.15%, which is near median its 10-year median of 27.66 and 21.2% below the Business Services industry median of 34.46. Localiza Rent A Car's overall GF Score™ is 71/100 with 9 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 Localiza Rent A Car (BSP:RENT4), the current Gross Margin % is 27.15% 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 Localiza Rent A Car (BSP:RENT4) Overvalued in 2026?
Based on GuruFocus' analysis, Localiza Rent A Car stock appears to be undervalued.
The current stock price of R$40.77 is trading 24% below its estimated GF Value™ of R$53.66.
GuruFocus considers Localiza Rent A Car to be Modestly Undervalued.
Key valuation signals for BSP:RENT4:
Gross Margin %: 27.15% (near median its 10-year median of 27.66)
GF Value™: R$53.66 vs. price of R$40.77 (24% below fair value)
Industry Position: 21.2% below the Business Services median (#641 of 1007)
No single metric tells the full story. See the BSP:RENT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Localiza Rent A Car SA is a car rental service provider with the majority of its operations in Brazil. Through its subsidiaries, the company rents cars to individuals, manages corporate car fleets, sells its decommissioned fleet, and operates a franchise business. The company has two reportable operating segments: Car Rental and Fleet Management. Maximum revenue is generated from the Car Rental segment, which is responsible for car rentals and for stipulating insurance and managing car claims for insurance companies. This segment is also responsible for the administration and granting of franchises and the right to use the Localiza brand in geographically defined markets. Geographically, the company operates across different regions in Latin America.
71GF Score
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