Localiza Rent (Brazil) Analysis
| RENT3 Stock | BRL 51.00 0.93 1.86% |
Localiza Rent a holds a debt-to-equity ratio of 1.985. Localiza Rent's financial risk is the risk to Localiza Rent stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Localiza Rent's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Localiza Rent's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Localiza Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Localiza Rent's stakeholders.
For many companies, including Localiza Rent, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Localiza Rent a, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Localiza Rent's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Localiza Rent's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Localiza Rent is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Localiza Rent to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Localiza Rent is said to be less leveraged. If creditors hold a majority of Localiza Rent's assets, the Company is said to be highly leveraged.
Localiza Rent a is undervalued with Real Value of 57.06 and Hype Value of 51.0. The main objective of Localiza Rent stock analysis is to determine its intrinsic value, which is an estimate of what Localiza Rent a is worth, separate from its market price. There are two main types of Localiza Rent's stock analysis: fundamental analysis and technical analysis. Fundamental analysis focuses on the financial and economic factors that affect Localiza Rent's performance, such as revenue growth, earnings, and financial stability. Technical analysis, on the other hand, focuses on the price and volume data of Localiza Rent's stock to identify patterns and trends that may indicate its future price movements.
The Localiza Rent stock is traded in Brazil on Sao Paulo Exchange, with the market opening at 10:00:00 and closing at 18:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in Brazil. Localiza Rent is usually not traded on IndependenceDay, OurLadyOfAparecidaDay, All Souls ' Day, ProclamationOfRepublicDay, Christmas Day, Market Holiday, New Year 's Day, TiradentesDay, International Workers ' Day. Localiza Stock trading window is adjusted to America/Sao Paulo timezone.
Localiza |
Localiza Stock Analysis Notes
About 21.0% of the company outstanding shares are owned by corporate insiders. The book value of Localiza Rent was at this time reported as 20.84. The company has Price/Earnings To Growth (PEG) ratio of 1.38. Localiza Rent a last dividend was issued on the 22nd of December 2022. The entity had 21:20 split on the 23rd of December 2019. Localiza Rent a Car S.A. engages in car rental and franchising activities. The company was founded in 1973 and is headquartered in Belo Horizonte, Brazil. LOCALIZA operates under Rental Leasing Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 12610 people. To find out more about Localiza Rent a contact Eugenio Mattar at 800 979 2020 or learn more at https://www.localiza.com.Localiza Rent a Investment Alerts
| Localiza Rent a has accumulated about 74.78 M in cash with (3.37 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.67. | |
| Roughly 21.0% of the company outstanding shares are owned by corporate insiders |
Localiza Market Capitalization
The company currently falls under 'Large-Cap' category with a current market capitalization of 54.64 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Localiza Rent's market, we take the total number of its shares issued and multiply it by Localiza Rent's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Localiza Profitablity
Localiza Rent's profitability indicators refer to fundamental financial ratios that showcase Localiza Rent's ability to generate income relative to its revenue or operating costs. If, let's say, Localiza Rent is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Localiza Rent's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Localiza Rent's profitability requires more research than a typical breakdown of Localiza Rent's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Profit Margin (PM) of 0.13 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.28 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.28. Technical Drivers
As of the 8th of February, Localiza Rent secures the Downside Deviation of 2.39, risk adjusted performance of 0.156, and Mean Deviation of 1.77. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Localiza Rent a, as well as the relationship between them. Please verify Localiza Rent a information ratio, value at risk, and the relationship between the standard deviation and treynor ratio to decide if Localiza Rent a is priced some-what accurately, providing market reflects its recent price of 51.0 per share.Localiza Rent a Price Movement Analysis
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Localiza Rent Outstanding Bonds
Localiza Rent issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Localiza Rent a uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Localiza bonds can be classified according to their maturity, which is the date when Localiza Rent a has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Localiza Rent Predictive Daily Indicators
Localiza Rent intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Localiza Rent stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Localiza Rent Forecast Models
Localiza Rent's time-series forecasting models are one of many Localiza Rent's stock analysis techniques aimed at predicting future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Localiza Rent's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.Localiza Rent a Debt to Cash Allocation
Many companies such as Localiza Rent, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Localiza Rent a has accumulated 11.18 B in total debt with debt to equity ratio (D/E) of 1.99, which is about average as compared to similar companies. Localiza Rent a has a current ratio of 1.55, which is within standard range for the sector. Debt can assist Localiza Rent until it has trouble settling it off, either with new capital or with free cash flow. So, Localiza Rent's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Localiza Rent a sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Localiza to invest in growth at high rates of return. When we think about Localiza Rent's use of debt, we should always consider it together with cash and equity.Localiza Rent Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Localiza Rent's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Localiza Rent, which in turn will lower the firm's financial flexibility.Localiza Rent Corporate Bonds Issued
About Localiza Stock Analysis
Stock analysis is the technique used by a trader or investor to examine and evaluate how Localiza Rent prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Localiza shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Stock such as Localiza Rent. By using and applying Localiza Stock analysis, traders can create a robust methodology for identifying Localiza entry and exit points for their positions.
Localiza Rent a Car S.A. engages in car rental and franchising activities. The company was founded in 1973 and is headquartered in Belo Horizonte, Brazil. LOCALIZA operates under Rental Leasing Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 12610 people.
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Additional Tools for Localiza Stock Analysis
When running Localiza Rent's price analysis, check to measure Localiza Rent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Localiza Rent is operating at the current time. Most of Localiza Rent's value examination focuses on studying past and present price action to predict the probability of Localiza Rent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Localiza Rent's price. Additionally, you may evaluate how the addition of Localiza Rent to your portfolios can decrease your overall portfolio volatility.