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Magazine LuizaBSP:MGLU3 -2.19%68 ROC (Joel Greenblatt) % is 5.07% as of Mar. 2026, which is 72% below its 10-year median of 18.28. GuruFocus rates BSP:MGLU3 with a GF Score™ of 68/100 and a GF Value™ of R$10.21 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,126 Retail - Cyclical companies, Magazine Luiza ranks better than 55.86% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Magazine Luiza's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.07%.
The historical rank and industry rank for Magazine Luiza's ROC (Joel Greenblatt) % or its related term are showing as below:
BSP:MGLU3'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -10.37 Med: 18.28 Max: 126.51
Current: 15.15
During the past 13 years, Magazine Luiza's highest ROC (Joel Greenblatt) % was 126.51%. The lowest was -10.37%. And the median was 18.28%.
BSP:MGLU3's ROC (Joel Greenblatt) % is ranked better than 55.86% of 1126
companies
in the Retail - Cyclical industry
Industry Median: 11.57
vs BSP:MGLU3: 15.15
Magazine Luiza's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Magazine Luiza ROC (Joel Greenblatt) % Related Terms
Magazine Luiza ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Magazine Luiza's ROC (Joel Greenblatt) % 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:MGLU3 vs CASY, WSM, DKS: ROC (Joel Greenblatt) % Comparison
For the Specialty Retail subindustry, Magazine Luiza's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Magazine Luiza's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 5.07% mean?
Magazine Luiza (BSP:MGLU3) has a ROC (Joel Greenblatt) % of 5.07% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Magazine Luiza and its competitors. This is 72% below median its historical median of 18.28. According to the industry distribution chart, Magazine Luiza ranks #497 out of 1126 companies in the Retail - Cyclical industry, placing it in the top 44.1%.
Is Magazine Luiza's ROC (Joel Greenblatt) % too high?
Magazine Luiza's current ROC (Joel Greenblatt) % of 5.07% is 72% below median its 10-year median of 18.28. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.57. Magazine Luiza's value of 5.07% is 56.2% below this industry median. Based on the distribution chart, Magazine Luiza ranks #497 out of 1126 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Magazine Luiza has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's ROC (Joel Greenblatt) % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #497 out of 1126 companies for ROC (Joel Greenblatt) %. This puts Magazine Luiza in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.57. Magazine Luiza's value of 5.07% is 56.2% below this benchmark. While the company's 10-year median is 18.28 vs. the industry median of 11.57, Magazine Luiza has consistently been below 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 ROC (Joel Greenblatt) % for a Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.57, based on 1,126 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magazine Luiza's current ROC (Joel Greenblatt) % of 5.07% is 56.2% below 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current ROC (Joel Greenblatt) % is 5.07%, which is 72% below median its own 10-year median of 18.28. 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 (BSP:MGLU3) is currently considered Possible Value Trap. The stock's GF Value™ is R$10.21, compared to a current price of R$4.92 — trading 51.8% below its estimated fair value. The current ROC (Joel Greenblatt) % is 5.07%, which is 72% below median its 10-year median of 18.28 and 56.2% below the Retail - Cyclical industry median of 11.57. Magazine Luiza's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current ROC (Joel Greenblatt) % is 5.07% 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 (BSP:MGLU3) Overvalued in 2026?
Based on GuruFocus' analysis, Magazine Luiza stock appears to be undervalued.
The current stock price of R$4.92 is trading 51.8% below its estimated GF Value™ of R$10.21.
GuruFocus considers Magazine Luiza to be Possible Value Trap.
Key valuation signals for BSP:MGLU3:
ROC (Joel Greenblatt) %: 5.07% (72% below median its 10-year median of 18.28)
GF Value™: R$10.21 vs. price of R$4.92 (51.8% below fair value)
Industry Position: 56.2% below the Retail - Cyclical median (#497 of 1126)
No single metric tells the full story. See the BSP:MGLU3 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.
68GF Score
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