Localiza Rent (Brazil) Performance
| RENT3 Stock | BRL 37.58 1.42 3.64% |
The company secures a Beta (Market Risk) of -0.26, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Localiza Rent are expected to decrease at a much lower rate. During the bear market, Localiza Rent is likely to outperform the market. At this point, Localiza Rent a has a negative expected return of -0.1%. Please make sure to verify Localiza Rent's standard deviation, maximum drawdown, kurtosis, as well as the relationship between the total risk alpha and potential upside , to decide if Localiza Rent a performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Localiza Rent a has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors. ...more
| Begin Period Cash Flow | 2.6 B | |
| Total Cashflows From Investing Activities | -147 M |
Localiza |
Localiza Rent Relative Risk vs. Return Landscape
If you would invest 4,087 in Localiza Rent a on September 2, 2024 and sell it today you would lose (329.00) from holding Localiza Rent a or give up 8.05% of portfolio value over 90 days. Localiza Rent a is generating negative expected returns and assumes 2.3211% volatility on return distribution over the 90 days horizon. Simply put, 20% of stocks are less volatile than Localiza, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
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Localiza Rent Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Localiza Rent's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Localiza Rent a, and traders can use it to determine the average amount a Localiza Rent's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.045
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| Negative Returns | RENT3 |
Estimated Market Risk
| 2.32 actual daily | 20 80% of assets are more volatile |
Expected Return
| -0.1 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.04 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Localiza Rent is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Localiza Rent by adding Localiza Rent to a well-diversified portfolio.
Localiza Rent Fundamentals Growth
Localiza Stock prices reflect investors' perceptions of the future prospects and financial health of Localiza Rent, and Localiza Rent fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Localiza Stock performance.
| Return On Equity | 0.13 | |||
| Return On Asset | 0.0591 | |||
| Profit Margin | 0.13 % | |||
| Operating Margin | 0.28 % | |||
| Current Valuation | 72.96 B | |||
| Shares Outstanding | 979.44 M | |||
| Price To Earning | 43.38 X | |||
| Price To Book | 2.41 X | |||
| Price To Sales | 3.36 X | |||
| Revenue | 10.9 B | |||
| EBITDA | 4.08 B | |||
| Cash And Equivalents | 74.78 M | |||
| Cash Per Share | 8.67 X | |||
| Total Debt | 11.18 B | |||
| Debt To Equity | 1.99 % | |||
| Book Value Per Share | 20.84 X | |||
| Cash Flow From Operations | (3.37 B) | |||
| Earnings Per Share | 2.02 X | |||
| Total Asset | 25.31 B | |||
About Localiza Rent Performance
Assessing Localiza Rent's fundamental ratios provides investors with valuable insights into Localiza Rent's financial health and overall profitability. This information is crucial for making informed investment decisions. A high ROA would indicate that the Localiza Rent is effectively leveraging its assets and equity to generate significant profits, making it an appealing investment. Conversely, low Return on Assets could signal underlying management issues in assets and equity, indicating a necessity for operational refinements. Please also refer to our technical analysis and fundamental analysis pages.
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.Things to note about Localiza Rent a performance evaluation
Checking the ongoing alerts about Localiza Rent for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Localiza Rent a help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Localiza Rent a generated a negative expected return over the last 90 days | |
| 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 |
- Analyzing Localiza Rent's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Localiza Rent's stock is overvalued or undervalued compared to its peers.
- Examining Localiza Rent's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Localiza Rent's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Localiza Rent's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Localiza Rent's stock. These opinions can provide insight into Localiza Rent's potential for growth and whether the stock is currently undervalued or overvalued.
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.