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Localiza Rent A CarBSP:RENT4 -0.69%70 Pretax Margin % is 9.86% as of Jun. 2026, which is 12% below its 10-year median of 11.21. GuruFocus rates BSP:RENT4 with a GF Score™ of 70/100 and a GF Value™ of R$50.98 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 1,070 Business Services companies, Localiza Rent A Car ranks better than 62.62% on this metric.
Localiza Rent A Car (BSP:RENT4) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Localiza Rent A Car Pretax Margin % Related Terms
Localiza Rent A Car Pretax Margin % Historical Data
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The historical data trend for Localiza Rent A Car's Pretax 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: Pretax Margin % Comparison
For the Rental & Leasing Services subindustry, Localiza Rent A Car's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car's Pretax 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 (BSP:RENT4) has a Pretax Margin % of 9.86% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Localiza Rent A Car and its competitors. This is 12% below median its historical median of 11.21. Over the past decade, Localiza Rent A Car's Pretax Margin % has ranged from 5.01 to 26.63. According to the industry distribution chart, Localiza Rent A Car ranks #400 out of 1070 companies in the Business Services industry, placing it in the top 37.4%.
Is Localiza Rent A Car's Pretax Margin % too high?
Localiza Rent A Car's current Pretax Margin % of 9.86% is 12% below median its 10-year median of 11.21. Over the past 10 years, this metric has ranged from a low of 5.01 to a high of 26.63. The Business Services industry median Pretax Margin % is 5.35. Localiza Rent A Car's value of 9.86% is 84.3% above this industry median. Based on the distribution chart, Localiza Rent A Car ranks #400 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, Localiza Rent A Car has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Localiza Rent A Car's Pretax Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Localiza Rent A Car ranks #400 out of 1070 companies for Pretax Margin %. This puts Localiza Rent A Car in the upper half of its industry. The industry median Pretax Margin % is 5.35. Localiza Rent A Car's value of 9.86% is 84.3% above this benchmark. Historically, Localiza Rent A Car's own Pretax Margin % has ranged from 5.01 to 26.63 over the past decade. While the company's 10-year median is 11.21 vs. the industry median of 5.35, 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 Pretax Margin % for a Business Services company?
The median Pretax Margin % among Business Services companies is 5.35, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Localiza Rent A Car's current Pretax Margin % of 9.86% is 84.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Localiza Rent A Car and its competitors. For the Business Services industry, the median Pretax Margin % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Localiza Rent A Car's current Pretax Margin % is 9.86%, which is 12% below median its own 10-year median of 11.21. 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 Possible Value Trap. The stock's GF Value™ is R$50.98, compared to a current price of R$33.17 — trading 34.9% below its estimated fair value. The current Pretax Margin % is 9.86%, which is 12% below median its 10-year median of 11.21 and 84.3% above the Business Services industry median of 5.35. Localiza Rent A Car's overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Localiza Rent A Car (BSP:RENT4), the current Pretax Margin % is 9.86% as of Jun. 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$33.17 is trading 34.9% below its estimated GF Value™ of R$50.98.
GuruFocus considers Localiza Rent A Car to be Possible Value Trap.
Key valuation signals for BSP:RENT4:
Pretax Margin %: 9.86% (12% below median its 10-year median of 11.21)
GF Value™: R$50.98 vs. price of R$33.17 (34.9% below fair value)
Industry Position: 84.3% above the Business Services median (#400 of 1070)
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.
70GF Score
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