Localiza Rent A CarBSP:RENT4 +1.09%71 ROE % is 18.85% as of Mar. 2026, which is 0% below its 10-year median of 18.88. GuruFocus rates BSP:RENT4 with a GF Score™ of 71/100 and a GF Value™ of R$53.66 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,058 Business Services companies, Localiza Rent A Car ranks better than 52.93% on this metric.
The historical rank and industry rank for Localiza Rent A Car's ROE % or its related term are showing as below:
BSP:RENT4'
s ROE % Range Over the Past 10 Years
Min: 7.01 Med: 18.88 Max: 29.9
Current: 8.74
During the past 13 years, Localiza Rent A Car's highest ROE % was 29.90%. The lowest was 7.01%. And the median was 18.88%.
BSP:RENT4's ROE % is ranked better than 52.93% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs BSP:RENT4: 8.74
Localiza Rent A Car (BSP:RENT4) 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.
Localiza Rent A Car ROE % Related Terms
Localiza Rent A Car ROE % Historical Data
* Premium members only.
The historical data trend for Localiza Rent A Car'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 Rental & Leasing Services subindustry, Localiza Rent A Car'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.
Localiza Rent A Car ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's ROE % distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car'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.
Localiza Rent A Car (BSP:RENT4) has a ROE % of 18.85% 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 Localiza Rent A Car and its competitors. This is near median its historical median of 18.88. Over the past decade, Localiza Rent A Car's ROE % has ranged from 7.01 to 29.90. According to the industry distribution chart, Localiza Rent A Car ranks #498 out of 1058 companies in the Business Services industry, placing it in the top 47.1%.
Is Localiza Rent A Car's ROE % too high?
Localiza Rent A Car's current ROE % of 18.85% is near median its 10-year median of 18.88. Over the past 10 years, this metric has ranged from a low of 7.01 to a high of 29.90. The Business Services industry median ROE % is 8.10. Localiza Rent A Car's value of 18.85% is 132.9% above this industry median. Based on the distribution chart, Localiza Rent A Car ranks #498 out of 1058 companies in the Business Services industry, which is above the industry midpoint. Overall, Localiza Rent A Car has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Localiza Rent A Car's ROE % compare to URI and SUNB?
According to the Business Services industry distribution chart, Localiza Rent A Car ranks #498 out of 1058 companies for ROE %. This puts Localiza Rent A Car in the upper half of its industry. The industry median ROE % is 8.10. Localiza Rent A Car's value of 18.85% is 132.9% above this benchmark. Historically, Localiza Rent A Car's own ROE % has ranged from 7.01 to 29.90 over the past decade. While the company's 10-year median is 18.88 vs. the industry median of 8.10, Localiza Rent A Car has consistently been above 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 Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 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. Localiza Rent A Car's current ROE % of 18.85% is 132.9% above 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 Localiza Rent A Car and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Localiza Rent A Car's current ROE % is 18.85%, which is near median its own 10-year median of 18.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Localiza Rent A Car stock overvalued right now?
Based on GuruFocus' analysis, Localiza Rent A Car (BSP:RENT4) is currently considered Modestly Undervalued. The stock's GF Value™ is R$53.66, compared to a current price of R$40.77 — trading 24% below its estimated fair value. The current ROE % is 18.85%, which is near median its 10-year median of 18.88 and 132.9% above the Business Services industry median of 8.10. Localiza Rent A Car's overall GF Score™ is 71/100 with 9 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 Localiza Rent A Car (BSP:RENT4), the current ROE % is 18.85% 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 Localiza Rent A Car (BSP:RENT4) Overvalued in 2026?
Based on GuruFocus' analysis, Localiza Rent A Car stock appears to be undervalued.
The current stock price of R$40.77 is trading 24% below its estimated GF Value™ of R$53.66.
GuruFocus considers Localiza Rent A Car to be Modestly Undervalued.
Key valuation signals for BSP:RENT4:
ROE %: 18.85% (near median its 10-year median of 18.88)
GF Value™: R$53.66 vs. price of R$40.77 (24% below fair value)
Industry Position: 132.9% above the Business Services median (#498 of 1058)
No single metric tells the full story. See the BSP:RENT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Localiza Rent A Car SA is a car rental service provider with the majority of its operations in Brazil. Through its subsidiaries, the company rents cars to individuals, manages corporate car fleets, sells its decommissioned fleet, and operates a franchise business. The company has two reportable operating segments: Car Rental and Fleet Management. Maximum revenue is generated from the Car Rental segment, which is responsible for car rentals and for stipulating insurance and managing car claims for insurance companies. This segment is also responsible for the administration and granting of franchises and the right to use the Localiza brand in geographically defined markets. Geographically, the company operates across different regions in Latin America.
71GF Score
Get the complete analysis for BSP:RENT4
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:RENT4 has been successfully added to your 
