Magazine LuizaMGLUY +12.39%66 Return-on-Tangible-Equity is -3.36% as of Mar. 2026. GuruFocus rates MGLUY with a GF Score™ of 66/100 and a GF Value™ of $8.03 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Magazine Luiza ranks worse than 70.08% 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. Magazine Luiza's annualized net income for the quarter that ended in Mar. 2026 was $-42 Mil. Magazine Luiza's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,256 Mil. Therefore, Magazine Luiza's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -3.36%.
The historical rank and industry rank for Magazine Luiza's Return-on-Tangible-Equity or its related term are showing as below:
MGLUY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -17.29 Med: 8.52 Max: 65.57
Current: 2.04
During the past 13 years, Magazine Luiza's highest Return-on-Tangible-Equity was 65.57%. The lowest was -17.29%. And the median was 8.52%.
MGLUY's Return-on-Tangible-Equity is ranked worse than 70.08% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs MGLUY: 2.04
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.
Magazine Luiza Return-on-Tangible-Equity Related Terms
Magazine Luiza Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Magazine Luiza'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.
MGLUY vs CASY, WSM, DKS: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Magazine Luiza'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.
Magazine Luiza Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Magazine Luiza'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 -3.36% mean?
Magazine Luiza (MGLUY) has a Return-on-Tangible-Equity of -3.36% 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 Magazine Luiza and its competitors. According to the industry distribution chart, Magazine Luiza ranks #740 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 70.1%.
Is Magazine Luiza's Return-on-Tangible-Equity too high?
Magazine Luiza's current Return-on-Tangible-Equity is -3.36%. Based on the distribution chart, Magazine Luiza ranks #740 out of 1056 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Magazine Luiza has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's Return-on-Tangible-Equity compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #740 out of 1056 companies for Return-on-Tangible-Equity. This places Magazine Luiza in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.33. 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 8.33, based on 1,056 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. 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 Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current Return-on-Tangible-Equity is -3.36%. 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 (MGLUY) is currently considered Possible Value Trap. The stock's GF Value™ is $8.03, compared to a current price of $3.72 — trading 53.7% below its estimated fair value. The current Return-on-Tangible-Equity is -3.36%. Magazine Luiza's overall GF Score™ is 66/100 with 6 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 Magazine Luiza (MGLUY), the current Return-on-Tangible-Equity is -3.36% 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 (MGLUY) Overvalued in 2026?
Based on GuruFocus' analysis, Magazine Luiza stock appears to be undervalued.
The current stock price of $3.72 is trading 53.7% below its estimated GF Value™ of $8.03.
GuruFocus considers Magazine Luiza to be Possible Value Trap.
Key valuation signals for MGLUY:
Return-on-Tangible-Equity: -3.36%
GF Value™: $8.03 vs. price of $3.72 (53.7% below fair value)
No single metric tells the full story. See the MGLUY 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.
66GF Score
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