Magazine Luiza SA
BOVESPA:MGLU3

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Magazine Luiza SA Logo
Magazine Luiza SA
BOVESPA:MGLU3
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Price: 9.21 BRL -4.06% Market Closed
Market Cap: 6.8B BRL

Operating Margin
Magazine Luiza SA

3.6%
Current
1%
Average
3.1%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
3.6%
=
Operating Profit
1.4B
/
Revenue
38.2B

Operating Margin Across Competitors

Magazine Luiza SA
Glance View

Market Cap
6.8B BRL
Industry
Retail

Magazine Luiza SA, commonly known as Magalu, has become a cornerstone of Brazilian retail by seamlessly blending tradition with innovation. Founded in 1957 in Franca, São Paulo, what began as a modest family-owned store has transformed into one of Brazil’s biggest retail giants. Initially focused on brick-and-mortar stores, Magalu steadily expanded its footprint across the country over the decades. But the true hallmark of its success has been the aggressive pivot towards digital transformation. Recognizing the e-commerce wave, the company embraced a robust online strategy that now supports its sprawling network of physical retail locations. This fusion of digital and physical sales channels allows Magalu to not only cater to tech-savvy urban customers but also reach the more traditional shoppers in smaller towns, effectively harmonizing its operations in both worlds. Magalu's business model stands out for leveraging an omnichannel approach, maximizing sales through both online and offline platforms while ensuring inventory and logistics synergy. The company has developed a sophisticated infrastructure that includes an extensive logistics network, ensuring efficient delivery and customer satisfaction, which is crucial in a country as vast as Brazil. Furthermore, by consistently acquiring tech startups, Magalu has fortified its e-commerce capabilities and integrated additional services such as digital payments and financial services for its growing customer base. Through these concerted efforts, Magazine Luiza generates revenue by selling an extensive array of products, from electronics and household appliances to apparel and beauty products. By continually adapting to consumer trends and investing in technology, Magalu has maintained a competitive edge, crafting a retail experience attuned to the demands of modern consumers while honoring its rich, storied heritage.

MGLU3 Intrinsic Value
22.47 BRL
Undervaluation 59%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
3.6%
=
Operating Profit
1.4B
/
Revenue
38.2B
What is the Operating Margin of Magazine Luiza SA?

Based on Magazine Luiza SA's most recent financial statements, the company has Operating Margin of 3.6%.

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