The historical rank and industry rank for Locaweb Servicos de Internet's ROE % or its related term are showing as below:
BSP:LWSA3'
s ROE % Range Over the Past 10 Years
Min: -12.05 Med: 1.23 Max: 24.19
Current: -8.58
During the past 11 years, Locaweb Servicos de Internet's highest ROE % was 24.19%. The lowest was -12.05%. And the median was 1.23%.
BSP:LWSA3's ROE % is ranked worse than 72% of 2682
companies
in the Software industry
Industry Median: 4.72
vs BSP:LWSA3: -8.58
Locaweb Servicos de Internet (BSP:LWSA3) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Locaweb Servicos de Internet ROE % Related Terms
Locaweb Servicos de Internet ROE % Historical 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.
For the Software - Infrastructure subindustry, Locaweb Servicos de Internet's ROE %, along with its competitors' market caps and ROE % 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.
Locaweb Servicos de Internet ROE % vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's ROE % distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Locaweb Servicos de Internet (BSP:LWSA3) has a ROE % of 3.58% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Locaweb Servicos de Internet and its competitors. This is 191% above median its historical median of 1.23. According to the industry distribution chart, Locaweb Servicos de Internet ranks #1931 out of 2682 companies in the Software industry, placing it in the top 72%.
Is Locaweb Servicos de Internet's ROE % too high?
Locaweb Servicos de Internet's current ROE % of 3.58% is 191% above median its 10-year median of 1.23. The Software industry median ROE % is 4.72. Locaweb Servicos de Internet's value of 3.58% is 24.2% below this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #1931 out of 2682 companies in the Software industry, which is below the industry midpoint. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #1931 out of 2682 companies for ROE %. This places Locaweb Servicos de Internet in the lower half of its industry. The industry median ROE % is 4.72. Locaweb Servicos de Internet's value of 3.58% is 24.2% below this benchmark. While the company's 10-year median is 1.23 vs. the industry median of 4.72, Locaweb Servicos de Internet 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 ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Locaweb Servicos de Internet's current ROE % of 3.58% is 24.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Locaweb Servicos de Internet and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locaweb Servicos de Internet's current ROE % is 3.58%, which is 191% above median its own 10-year median of 1.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.02, compared to a current price of R$4.15 — trading 17.3% below its estimated fair value. The current ROE % is 3.58%, which is 191% above median its 10-year median of 1.23 and 24.2% below the Software industry median of 4.72. Locaweb Servicos de Internet's overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Locaweb Servicos de Internet (BSP:LWSA3), the current ROE % is 3.58% 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$4.15 is trading 17.3% below its estimated GF Value™ of R$5.02.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
ROE %: 3.58% (191% above median its 10-year median of 1.23)
GF Value™: R$5.02 vs. price of R$4.15 (17.3% below fair value)
Industry Position: 24.2% below the Software median (#1931 of 2682)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
Get the complete analysis for BSP:LWSA3
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:LWSA3 has been successfully added to your 
