Net margin is calculated as Net Income divided by its Revenue. Magazine Luiza's Net Income for the
three
months ended in Mar. 2026 was R$-55 Mil. Magazine Luiza's Revenue for the
three
months ended in Mar. 2026 was R$9,206 Mil. Therefore, Magazine Luiza's net margin for the quarter that ended in Mar. 2026 was -0.60%.
The historical rank and industry rank for Magazine Luiza's Net Margin % or its related term are showing as below:
BSP:MGLU3'
s Net Margin % Range Over the Past 10 Years
Min: -2.66 Med: 1.26 Max: 4.64
Current: 0.36
BSP:MGLU3's Net Margin % is ranked worse than 68.83% of 1123
companies
in the Retail - Cyclical industry
Industry Median: 2.34
vs BSP:MGLU3: 0.36
Magazine Luiza (BSP:MGLU3) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Magazine Luiza Net Margin % Related Terms
Magazine Luiza Net Margin % Historical Data
* Premium members only.
The historical data trend for Magazine Luiza's Net 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: Net Margin % Comparison
For the Specialty Retail subindustry, Magazine Luiza's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Net Margin % distribution charts can be found below:
* The bar in red indicates where Magazine Luiza's Net 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.
Magazine Luiza (BSP:MGLU3) has a Net Margin % of -0.60% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Magazine Luiza and its competitors. According to the industry distribution chart, Magazine Luiza ranks #773 out of 1123 companies in the Retail - Cyclical industry, placing it in the top 68.8%.
Is Magazine Luiza's Net Margin % too high?
Magazine Luiza's current Net Margin % is -0.60%. Based on the distribution chart, Magazine Luiza ranks #773 out of 1123 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Magazine Luiza has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's Net Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #773 out of 1123 companies for Net Margin %. This places Magazine Luiza in the lower half of its industry. The industry median Net Margin % is 2.34. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.34, based on 1,123 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current Net Margin % is -0.60%. 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$10.17, compared to a current price of R$4.68 — trading 54% below its estimated fair value. The current Net Margin % is -0.60%. Magazine Luiza's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current Net Margin % is -0.60% 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$4.68 is trading 54% below its estimated GF Value™ of R$10.17.
GuruFocus considers Magazine Luiza to be Possible Value Trap.
Key valuation signals for BSP:MGLU3:
Net Margin %: -0.60%
GF Value™: R$10.17 vs. price of R$4.68 (54% below fair value)
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.
68GF Score
Get the complete analysis for BSP:MGLU3
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:MGLU3 has been successfully added to your 
