Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Magazine Luiza's 3-Year RORE % for the quarter that ended in Mar. 2026 was -304.28%.
The industry rank for Magazine Luiza's 3-Year RORE % or its related term are showing as below:
BSP:MGLU3's 3-Year RORE % is ranked worse than 97.24% of 1052
companies
in the Retail - Cyclical industry
Industry Median: 4.085
vs BSP:MGLU3: -304.28
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Magazine Luiza 3-Year RORE % Related Terms
Magazine Luiza 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Magazine Luiza's 3-Year RORE % 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: 3-Year RORE % Comparison
For the Specialty Retail subindustry, Magazine Luiza's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Magazine Luiza's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Magazine Luiza (BSP:MGLU3) has a 3-Year RORE % of -304.28 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Magazine Luiza and its competitors. According to the industry distribution chart, Magazine Luiza ranks #1023 out of 1052 companies in the Retail - Cyclical industry, placing it in the top 97.2%.
Is Magazine Luiza's 3-Year RORE % too high?
Magazine Luiza's current 3-Year RORE % is -304.28. Based on the distribution chart, Magazine Luiza ranks #1023 out of 1052 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Magazine Luiza has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's 3-Year RORE % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Magazine Luiza ranks #1023 out of 1052 companies for 3-Year RORE %. This places Magazine Luiza in the lower half of its industry. The industry median 3-Year RORE % is 4.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Retail - Cyclical company?
The median 3-Year RORE % among Retail - Cyclical companies is 4.09, based on 1,052 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Magazine Luiza and its competitors. For the Retail - Cyclical industry, the median 3-Year RORE % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magazine Luiza's current 3-Year RORE % is -304.28. 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$10.18, compared to a current price of R$5.22 — trading 48.7% below its estimated fair value. The current 3-Year RORE % is -304.28. Magazine Luiza's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current 3-Year RORE % is -304.28 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$5.22 is trading 48.7% below its estimated GF Value™ of R$10.18.
GuruFocus considers Magazine Luiza to be Possible Value Trap.
Key valuation signals for BSP:MGLU3:
3-Year RORE %: -304.28
GF Value™: R$10.18 vs. price of R$5.22 (48.7% 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.
65GF Score
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