MGLUY (Magazine Luiza) Moat Score: 5/10 (As of Jul. 04, 2026)


MGLUY Magazine Luiza SA MGLUY
67 GF Score
Price $3.33
GF Value $8.02
Valuation Possible Value Trap
! 6 Warning Signs
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What is Magazine Luiza Moat Score?

Magazine Luiza MGLUY -0.60% 67 Moat Score is 5 as of Jul. 04, 2026. GuruFocus rates MGLUY with a GF Score™ of 67/100 and a GF Value™ of $8.02 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,118 Retail - Cyclical companies, Magazine Luiza ranks better than 94.81% on this metric.

Magazine Luiza has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Magazine Luiza has Narrow Moat: Magazine Luiza SA has a solid narrow moat due to its strong brand presence in Brazil and a robust distribution network. However, it faces intense competition and lacks significant global market leadership or unique intellectual property.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Magazine Luiza might have Narrow Moat - Solid narrow moat.

Magazine Luiza  (OTCPK:MGLUY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Magazine Luiza Moat Score Related Terms

MGLUY vs CASY, WSM, DKS: Moat Score Comparison

For the Specialty Retail subindustry, Magazine Luiza's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Moat Score distribution charts can be found below:

* The bar in red indicates where Magazine Luiza's Moat Score falls into.


MGLUY
67GF Score
Magazine Luiza SA MGLUY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Magazine Luiza (MGLUY) has a Moat Score of 5 as of Jul. 04, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Magazine Luiza ranks #58 out of 1118 companies in the Retail - Cyclical industry, placing it in the top 5.2%.
Is Magazine Luiza's Moat Score too high?
Magazine Luiza's current Moat Score is 5. Based on the distribution chart, Magazine Luiza ranks #58 out of 1118 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Magazine Luiza has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's Moat Score compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #58 out of 1118 companies for Moat Score. This places Magazine Luiza in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Cyclical company?
A good Moat Score depends on the Retail - Cyclical industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Magazine Luiza's current Moat Score is 5. 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 (MGLUY) is currently considered Possible Value Trap. The stock's GF Value™ is $8.02, compared to a current price of $3.33 — trading 58.5% below its estimated fair value. The current Moat Score is 5. Magazine Luiza's overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Magazine Luiza (MGLUY), the current Moat Score is 5 as of Jul. 04, 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 (MGLUY) Overvalued in 2026?

Based on GuruFocus' analysis, Magazine Luiza stock appears to be undervalued. The current stock price of $3.33 is trading 58.5% below its estimated GF Value™ of $8.02. GuruFocus considers Magazine Luiza to be Possible Value Trap.

Key valuation signals for MGLUY:

  • Moat Score: 5
  • GF Value™: $8.02 vs. price of $3.33 (58.5% below fair value)
  • GF Score™: 67/100 with 6 warning signs

No single metric tells the full story. See the MGLUY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Magazine Luiza Business Description

Other Exchanges MGLU3:Brazil
Address Rua Arnulfo de Lima, 2385 - Vila Santa Cruz, Franca, SP, BRA, 14403-471
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.
67GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$3.33
Price
$8.02
GF Value