Magazine Luiza (BSP:MGLU3) ROCE %: 1.27% (As of Mar. 2026)

What is Magazine Luiza ROCE %?

Magazine Luiza BSP:MGLU3 +1.38% 63 ROCE % is 1.27% as of Mar. 2026. GuruFocus rates BSP:MGLU3 with a GF Score™ of 63/100 and a GF Value™ of R$10.16 (Possible Value Trap). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Magazine Luiza's annualized ROCE % for the quarter that ended in Mar. 2026 was 1.27%.

Magazine Luiza (BSP:MGLU3) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Magazine Luiza ROCE % Related Terms

Magazine Luiza ROCE % Historical Data

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The historical data trend for Magazine Luiza's ROCE % 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.

Magazine Luiza ROCE % Chart

Magazine Luiza Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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1.04

-0.32

-3.58

5.06

5.09

Magazine Luiza Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															3.66	3.08	6.11	6.81	1.27

63GF Score

Magazine Luiza SA BSP:MGLU3

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Magazine Luiza ROCE % Calculation

Magazine Luiza's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	1051.408	/	( ( (37311.858 - 16710.55)	+	(37911.158 - 17182.792) )	/ 2 )
	=	1051.408	/	( (20601.308	+	20728.366)	/ 2 )
	=	1051.408	/	20664.837
	=	5.09 %

Magazine Luiza's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	261.992	/	( ( (37911.158 - 17182.792)	+	(36712.079 - 16274.53) )	/ 2 )
	=	261.992	/	( ( 20728.366	+	20437.549 )	/ 2 )
	=	261.992	/	20582.9575
	=	1.27 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 1.27% mean?

Magazine Luiza (BSP:MGLU3) has a ROCE % of 1.27% as of Mar. 2026.

Is Magazine Luiza's ROCE % too high?

Magazine Luiza's current ROCE % is 1.27%. The Retail - Cyclical industry median ROCE % is 7.58. Magazine Luiza's value of 1.27% is 83.2% below this industry median. Overall, Magazine Luiza has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Magazine Luiza's ROCE % compare to CASY and WSM?

Magazine Luiza's ROCE % of 1.27% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. Magazine Luiza's value of 1.27% is 83.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Retail - Cyclical company?

The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magazine Luiza's current ROCE % of 1.27% is 83.2% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current ROCE % is 1.27%. 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$10.16, compared to a current price of R$4.42 — trading 56.5% below its estimated fair value. The current ROCE % is 1.27% and 83.2% below the Retail - Cyclical industry median of 7.58. Magazine Luiza's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current ROCE % is 1.27% 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$4.42 is trading 56.5% below its estimated GF Value™ of R$10.16. GuruFocus considers Magazine Luiza to be Possible Value Trap.

Key valuation signals for BSP:MGLU3:

ROCE %: 1.27%
GF Value™: R$10.16 vs. price of R$4.42 (56.5% below fair value)
GF Score™: 63/100 with 6 warning signs
Industry Position: 83.2% below the Retail - Cyclical median

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 Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies BSP:CEAB3 BSP:SBFG3 BSP:BHIA3 BSP:LJQQ3 BSP:WEST3 BSP:TOKY3 TSX:ATD XJAM:ASBH CASY WSM ULTA DKS SHSE:601888 TSCO BBY ADX:ADNOCDIST FIVE TPE:3045 GME MUSA

Other Exchanges MGLUY:USA

Address Rua Arnulfo de Lima, 2385 - Vila Santa Cruz, Franca, SP, BRA, 14403-471

Website https://www.magazineluiza.com.br

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.

63GF Score

Get the complete analysis for BSP:MGLU3

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$4.42

Price

R$10.16

GF Value

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