Magazine LuizaBSP:MGLU3 +0.45%63 Interest Coverage is 0.95 as of Mar. 2026, which is 51% below its 10-year median of 1.94. GuruFocus rates BSP:MGLU3 with a GF Score™ of 63/100 and a GF Value™ of R$10.16 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 824 Retail - Cyclical companies, Magazine Luiza ranks worse than 89.44% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Magazine Luiza's
Operating Income
for the
three
months ended in Mar. 2026 was R$268 Mil. Magazine Luiza's Interest Expense for the
three
months ended in Mar. 2026 was R$-281 Mil.
Magazine Luiza's interest coverage for the quarter that ended in Mar. 2026 was 0.95.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Magazine Luiza's Interest Coverage or its related term are showing as below:
BSP:MGLU3'
s Interest Coverage Range Over the Past 10 Years
Min: 0.68 Med: 1.94 Max: 19.7
Current: 1.3
BSP:MGLU3's Interest Coverage is ranked worse than 89.44% of 824
companies
in the Retail - Cyclical industry
Industry Median: 7.94
vs BSP:MGLU3: 1.30
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Magazine Luiza Interest Coverage Related Terms
Magazine Luiza Interest Coverage Historical Data
* Premium members only.
The historical data trend for Magazine Luiza's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
BSP:MGLU3 vs CASY, WSM, DKS: Interest Coverage Comparison
For the Specialty Retail subindustry, Magazine Luiza's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Magazine Luiza's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Magazine Luiza (BSP:MGLU3) has a Interest Coverage of 0.95 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Magazine Luiza and its competitors. This is 51% below median its historical median of 1.94. Over the past decade, Magazine Luiza's Interest Coverage has ranged from 0.68 to 19.70. According to the industry distribution chart, Magazine Luiza ranks #737 out of 824 companies in the Retail - Cyclical industry, placing it in the top 89.4%.
Is Magazine Luiza's Interest Coverage too high?
Magazine Luiza's current Interest Coverage of 0.95 is 51% below median its 10-year median of 1.94. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 19.70. The Retail - Cyclical industry median Interest Coverage is 7.94. Magazine Luiza's value of 0.95 is 88% below this industry median. Based on the distribution chart, Magazine Luiza ranks #737 out of 824 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Magazine Luiza has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's Interest Coverage compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #737 out of 824 companies for Interest Coverage. This places Magazine Luiza in the lower half of its industry. The industry median Interest Coverage is 7.94. Magazine Luiza's value of 0.95 is 88% below this benchmark. Historically, Magazine Luiza's own Interest Coverage has ranged from 0.68 to 19.70 over the past decade. While the company's 10-year median is 1.94 vs. the industry median of 7.94, 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 Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magazine Luiza's current Interest Coverage of 0.95 is 88% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current Interest Coverage is 0.95, which is 51% below median its own 10-year median of 1.94. 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 Interest Coverage is 0.95, which is 51% below median its 10-year median of 1.94 and 88% below the Retail - Cyclical industry median of 7.94. Magazine Luiza's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current Interest Coverage is 0.95 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:
Interest Coverage: 0.95 (51% below median its 10-year median of 1.94)
GF Value™: R$10.16 vs. price of R$4.44 (56.3% below fair value)
Industry Position: 88% below the Retail - Cyclical median (#737 of 824)
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.
63GF Score
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