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Localiza Rent A CarBSP:RENT4 -0.69%70 Return-on-Tangible-Equity is 22.34% as of Jun. 2026, which is 14% above its 10-year median of 19.63. 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 1,010 Business Services companies, Localiza Rent A Car ranks better than 68.22% 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. Localiza Rent A Car's annualized net income for the quarter that ended in Jun. 2026 was R$4,012 Mil. Localiza Rent A Car's average shareholder tangible equity for the quarter that ended in Jun. 2026 was R$17,961 Mil. Therefore, Localiza Rent A Car's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 22.34%.
The historical rank and industry rank for Localiza Rent A Car's Return-on-Tangible-Equity or its related term are showing as below:
BSP:RENT4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.67 Med: 19.63 Max: 30.56
Current: 20.05
During the past 13 years, Localiza Rent A Car's highest Return-on-Tangible-Equity was 30.56%. The lowest was 10.67%. And the median was 19.63%.
BSP:RENT4's Return-on-Tangible-Equity is ranked better than 68.22% of 1010
companies
in the Business Services industry
Industry Median: 10.995
vs BSP:RENT4: 20.05
Localiza Rent A Car (BSP:RENT4) Return-on-Tangible-Equity Explanation
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.
Localiza Rent A Car Return-on-Tangible-Equity Related Terms
Localiza Rent A Car Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Localiza Rent A Car'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.
Localiza Rent A Car Return-on-Tangible-Equity Chart
BSP:RENT4 vs URI, SUNB, AER: Return-on-Tangible-Equity Comparison
For the Rental & Leasing Services subindustry, Localiza Rent A Car'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.
Localiza Rent A Car Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 22.34% mean?
Localiza Rent A Car (BSP:RENT4) has a Return-on-Tangible-Equity of 22.34% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Localiza Rent A Car and its competitors. This is 14% above median its historical median of 19.63. Over the past decade, Localiza Rent A Car's Return-on-Tangible-Equity has ranged from 10.67 to 30.56. According to the industry distribution chart, Localiza Rent A Car ranks #321 out of 1010 companies in the Business Services industry, placing it in the top 31.8%.
Is Localiza Rent A Car's Return-on-Tangible-Equity too high?
Localiza Rent A Car's current Return-on-Tangible-Equity of 22.34% is 14% above median its 10-year median of 19.63. Over the past 10 years, this metric has ranged from a low of 10.67 to a high of 30.56. The Business Services industry median Return-on-Tangible-Equity is 11.00. Localiza Rent A Car's value of 22.34% is 103.2% above this industry median. Based on the distribution chart, Localiza Rent A Car ranks #321 out of 1010 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 Return-on-Tangible-Equity compare to URI and SUNB?
According to the Business Services industry distribution chart, Localiza Rent A Car ranks #321 out of 1010 companies for Return-on-Tangible-Equity. This puts Localiza Rent A Car in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.00. Localiza Rent A Car's value of 22.34% is 103.2% above this benchmark. Historically, Localiza Rent A Car's own Return-on-Tangible-Equity has ranged from 10.67 to 30.56 over the past decade. While the company's 10-year median is 19.63 vs. the industry median of 11.00, 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 Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 11.00, based on 1,010 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. Localiza Rent A Car's current Return-on-Tangible-Equity of 22.34% is 103.2% 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 Localiza Rent A Car and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 11.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Localiza Rent A Car's current Return-on-Tangible-Equity is 22.34%, which is 14% above median its own 10-year median of 19.63. 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 Return-on-Tangible-Equity is 22.34%, which is 14% above median its 10-year median of 19.63 and 103.2% above the Business Services industry median of 11.00. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Localiza Rent A Car (BSP:RENT4), the current Return-on-Tangible-Equity is 22.34% 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:
Return-on-Tangible-Equity: 22.34% (14% above median its 10-year median of 19.63)
GF Value™: R$50.98 vs. price of R$33.17 (34.9% below fair value)
Industry Position: 103.2% above the Business Services median (#321 of 1010)
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
Get the complete analysis for BSP:RENT4
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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