Localiza (RENT3.SA)
Industrials · B3 · Brazil
Fundamentals
Valuation and ratings
Localiza trades at R$38.86, which is 105% below the R$79.70 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 19.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Localiza
Localiza Rent a Car S.A., together with its subsidiaries, engages in the car rental business in Brazil and internationally. It is involved in fleet administration and management; sale and support of used cars; granting franchises; vehicle claims management; provision of tracking and telemetry solutions; travel and tourism agency services; and other automotive services. The company also offers Zarp, an app-based network dedicated to drivers for car rental. It serves individual and legal entities. The company was founded in 1973 and is headquartered in Belo Horizonte, Brazil.
RENT3.SA passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Localiza (RENT3.SA) undervalued?
Against our discounted cash flow estimate of R$79.70, RENT3.SA at R$38.86 is 105% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is RENT3.SA's P/E ratio?
RENT3.SA trades at 19.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.