ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Magazine Luiza's annualized net income for the quarter that ended in Mar. 2026 was R$-221 Mil. Magazine Luiza's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was R$11,275 Mil. Therefore, Magazine Luiza's annualized ROE % for the quarter that ended in Mar. 2026 was -1.96%.
The historical rank and industry rank for Magazine Luiza's ROE % or its related term are showing as below:
BSP:MGLU3'
s ROE % Range Over the Past 10 Years
Min: -9.67 Med: 5.81 Max: 28.86
Current: 1.22
During the past 13 years, Magazine Luiza's highest ROE % was 28.86%. The lowest was -9.67%. And the median was 5.81%.
BSP:MGLU3's ROE % is ranked worse than 69.64% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs BSP:MGLU3: 1.22
Magazine Luiza (BSP:MGLU3) 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.
Magazine Luiza ROE % Related Terms
Magazine Luiza ROE % Historical Data
* Premium members only.
The historical data trend for Magazine Luiza's ROE % 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.
For the Specialty Retail subindustry, Magazine Luiza'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.
Magazine Luiza ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's ROE % distribution charts can be found below:
* The bar in red indicates where Magazine Luiza'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.
Magazine Luiza (BSP:MGLU3) has a ROE % of -1.96% 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 Magazine Luiza and its competitors. According to the industry distribution chart, Magazine Luiza ranks #764 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 69.6%.
Is Magazine Luiza's ROE % too high?
Magazine Luiza's current ROE % is -1.96%. Based on the distribution chart, Magazine Luiza ranks #764 out of 1097 companies in the Retail - Cyclical industry, which is below the industry midpoint. 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 ROE % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #764 out of 1097 companies for ROE %. This places Magazine Luiza in the lower half of its industry. The industry median ROE % is 6.46. 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. 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 Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current ROE % is -1.96%. 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$4.44 — trading 56.3% below its estimated fair value. The current ROE % is -1.96%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current ROE % is -1.96% 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$4.44 is trading 56.3% below its estimated GF Value™ of R$10.16.
GuruFocus considers Magazine Luiza to be Possible Value Trap.
Key valuation signals for BSP:MGLU3:
ROE %: -1.96%
GF Value™: R$10.16 vs. price of R$4.44 (56.3% below fair value)
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.
63GF Score
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