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Localiza Rent A CarFRA:1LOA +1.64%94 Net Margin % is 9.95% as of Mar. 2026, which is 17% above its 10-year median of 8.50. GuruFocus rates FRA:1LOA with a GF Score™ of 94/100 and a GF Value™ of €9.03. The stock has 9 warning signs investors should review. Among 1,071 Business Services companies, Localiza Rent A Car ranks better than 57.33% on this metric.
Localiza Rent A Car (FRA:1LOA) 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.
Localiza Rent A Car Net Margin % Related Terms
Localiza Rent A Car Net Margin % Historical Data
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The historical data trend for Localiza Rent A Car'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.
FRA:1LOA vs URI, SUNB, AER: Net Margin % Comparison
For the Rental & Leasing Services subindustry, Localiza Rent A Car'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.
Localiza Rent A Car Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's Net Margin % distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car'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.
Localiza Rent A Car (FRA:1LOA) has a Net Margin % of 9.95% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Localiza Rent A Car and its competitors. This is 17% above median its historical median of 8.50. Over the past decade, Localiza Rent A Car's Net Margin % has ranged from 4.49 to 18.75. According to the industry distribution chart, Localiza Rent A Car ranks #457 out of 1071 companies in the Business Services industry, placing it in the top 42.7%.
Is Localiza Rent A Car's Net Margin % too high?
Localiza Rent A Car's current Net Margin % of 9.95% is 17% above median its 10-year median of 8.50. Over the past 10 years, this metric has ranged from a low of 4.49 to a high of 18.75. The Business Services industry median Net Margin % is 3.85. Localiza Rent A Car's value of 9.95% is 158.4% above this industry median. Based on the distribution chart, Localiza Rent A Car ranks #457 out of 1071 companies in the Business Services industry, which is above the industry midpoint. Overall, Localiza Rent A Car has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Localiza Rent A Car's Net Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Localiza Rent A Car ranks #457 out of 1071 companies for Net Margin %. This puts Localiza Rent A Car in the upper half of its industry. The industry median Net Margin % is 3.85. Localiza Rent A Car's value of 9.95% is 158.4% above this benchmark. Historically, Localiza Rent A Car's own Net Margin % has ranged from 4.49 to 18.75 over the past decade. While the company's 10-year median is 8.50 vs. the industry median of 3.85, Localiza Rent A Car has consistently been above 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 Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 3.85, based on 1,071 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. Localiza Rent A Car's current Net Margin % of 9.95% is 158.4% above 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 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 Localiza Rent A Car and its competitors. For the Business Services industry, the median Net Margin % is 3.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Localiza Rent A Car's current Net Margin % is 9.95%, which is 17% above median its own 10-year median of 8.50. 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?
Localiza Rent A Car (FRA:1LOA) has a current Net Margin % of 9.95%. The stock's GF Value™ is €9.03, compared to a current price of €6.20 — trading 31.3% below its estimated fair value. The current Net Margin % is 9.95%, which is 17% above median its 10-year median of 8.50 and 158.4% above the Business Services industry median of 3.85. Localiza Rent A Car's overall GF Score™ is 94/100 with 9 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 Localiza Rent A Car (FRA:1LOA), the current Net Margin % is 9.95% 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 Localiza Rent A Car (FRA:1LOA) Overvalued in 2026?
Based on GuruFocus' analysis, Localiza Rent A Car stock appears to be undervalued.
The current stock price of €6.20 is trading 31.3% below its estimated GF Value™ of €9.03.
Key valuation signals for FRA:1LOA:
Net Margin %: 9.95% (17% above median its 10-year median of 8.50)
GF Value™: €9.03 vs. price of €6.20 (31.3% below fair value)
Industry Position: 158.4% above the Business Services median (#457 of 1071)
No single metric tells the full story. See the FRA:1LOA 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.
94GF Score
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