Lojas RennerBSP:LREN3 92 Return-on-Tangible-Equity is 11.68% as of Mar. 2026, which is 44% below its 10-year median of 21.04. GuruFocus rates BSP:LREN3 with a GF Score™ of 92/100 and a GF Value™ of R$17.27 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,055 Retail - Cyclical companies, Lojas Renner ranks better than 68.53% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lojas Renner's annualized net income for the quarter that ended in Mar. 2026 was R$1,029 Mil. Lojas Renner's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$8,810 Mil. Therefore, Lojas Renner's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.68%.
The historical rank and industry rank for Lojas Renner's Return-on-Tangible-Equity or its related term are showing as below:
BSP:LREN3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.62 Med: 21.04 Max: 33.91
Current: 17.12
During the past 13 years, Lojas Renner's highest Return-on-Tangible-Equity was 33.91%. The lowest was 9.62%. And the median was 21.04%.
BSP:LREN3's Return-on-Tangible-Equity is ranked better than 68.53% of 1055
companies
in the Retail - Cyclical industry
Industry Median: 8.28
vs BSP:LREN3: 17.12
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lojas Renner Return-on-Tangible-Equity Related Terms
Lojas Renner Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lojas Renner's Return-on-Tangible-Equity 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:LREN3 vs DDS, M: Return-on-Tangible-Equity Comparison
For the Department Stores subindustry, Lojas Renner's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Lojas Renner Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lojas Renner's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lojas Renner's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.68% mean?
Lojas Renner (BSP:LREN3) has a Return-on-Tangible-Equity of 11.68% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lojas Renner and its competitors. This is 44% below median its historical median of 21.04. Over the past decade, Lojas Renner's Return-on-Tangible-Equity has ranged from 9.62 to 33.91. According to the industry distribution chart, Lojas Renner ranks #332 out of 1055 companies in the Retail - Cyclical industry, placing it in the top 31.5%.
Is Lojas Renner's Return-on-Tangible-Equity too high?
Lojas Renner's current Return-on-Tangible-Equity of 11.68% is 44% below median its 10-year median of 21.04. Over the past 10 years, this metric has ranged from a low of 9.62 to a high of 33.91. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Lojas Renner's value of 11.68% is 41.1% above this industry median. Based on the distribution chart, Lojas Renner ranks #332 out of 1055 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Lojas Renner has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lojas Renner's Return-on-Tangible-Equity compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Lojas Renner ranks #332 out of 1055 companies for Return-on-Tangible-Equity. This puts Lojas Renner in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.28. Lojas Renner's value of 11.68% is 41.1% above this benchmark. Historically, Lojas Renner's own Return-on-Tangible-Equity has ranged from 9.62 to 33.91 over the past decade. While the company's 10-year median is 21.04 vs. the industry median of 8.28, Lojas Renner 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,055 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lojas Renner's current Return-on-Tangible-Equity of 11.68% is 41.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lojas Renner and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lojas Renner's current Return-on-Tangible-Equity is 11.68%, which is 44% below median its own 10-year median of 21.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lojas Renner stock overvalued right now?
Based on GuruFocus' analysis, Lojas Renner (BSP:LREN3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$17.27, compared to a current price of R$14.80 — trading 14.3% below its estimated fair value. The current Return-on-Tangible-Equity is 11.68%, which is 44% below median its 10-year median of 21.04 and 41.1% above the Retail - Cyclical industry median of 8.28. Lojas Renner's overall GF Score™ is 92/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lojas Renner (BSP:LREN3), the current Return-on-Tangible-Equity is 11.68% 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 Lojas Renner (BSP:LREN3) Overvalued in 2026?
Based on GuruFocus' analysis, Lojas Renner stock appears to be undervalued.
The current stock price of R$14.80 is trading 14.3% below its estimated GF Value™ of R$17.27.
GuruFocus considers Lojas Renner to be Modestly Undervalued.
Key valuation signals for BSP:LREN3:
Return-on-Tangible-Equity: 11.68% (44% below median its 10-year median of 21.04)
GF Value™: R$17.27 vs. price of R$14.80 (14.3% below fair value)
Industry Position: 41.1% above the Retail - Cyclical median (#332 of 1055)
No single metric tells the full story. See the BSP:LREN3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lojas Renner SA is an omnichannel fashion retailer in Brazil, bringing together the Renner, Camicado, Youcom, Realize, and Repassa brands in a fashion and lifestyle ecosystem that connects customers through digital channels and physical stores distributed across Brazil, Argentina, and Uruguay. It operates in two segments namely Retail engaged in trade of clothing, perfumery, cosmetics, watches and home & decoration, urban deliveries and logistics management solutions covering the operations of Renner, Camicado, Youcom, Repassa, Uello and operations in Uruguay and Argentina; and Financial products engaged in granting of individual and corporate loans, financing of purchases, insurance and the practice of receivables and payables inherent to credit, financing and investment companies.
92GF Score
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