# Rumo (RAIL3.SA)

Canonical: https://gigainvestors.com/s/RAIL3.SA

Analysis as of: 2026-10-16T07:36:46.431Z. Financial observations: FY2000–FY2026.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 18.58 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.24×

- FY2018: 0.28×

- FY2019: 0.30×

- FY2020: 0.26×

- FY2021: 0.21×

- FY2022: 0.28×

- FY2023: 0.33×

- FY2024: 0.41×

- FY2025: 0.42×

- LTM to Jun 2026: 0.42×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.1%

- ROIC, second-lowest year: 4.9%

- Typical minus recent gross margin: -12.5 pp

- Typical gross margin (annual median): 33.3%

- Recent gross margin (lower of latest and 3-year median): 45.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 36.9%

- ROIC including acquisitions, ten-year median: -4.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.4%

- FY2018: 6.2%

- FY2019: 7.7%

- FY2020: 3.8%

- FY2021: 4.9%

- FY2022: 6.6%

- FY2023: 8.4%

- FY2024: 13.6%

- FY2025: 10.0%

- LTM to Jun 2026: 9.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -7.38×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL -9.4B

- Net income, five-year total: BRL 1.3B

- Return on incremental invested capital: 23.6%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -2.9 pp

- Working capital / revenue, final three-year average: -0.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -10.25×

- FY2022: -1.57×

- FY2023: -0.94×

- FY2024: 2.62×

- FY2025: -4.56×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.2% vs 10.0%

- Per-share earnings: -1.05 to 0.39 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.6%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: BRL 21B

- Cumulative retained earnings: BRL 5.7B

- Diluted shares, 10-year annual growth: 10.6%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: BRL 1.44

- Per-share value, starting three-year median: BRL -1.05

- Per-share value, ending three-year median: BRL 0.39

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 0.4%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 5.4B

- Cumulative net income, 10 years: BRL 1.3B

- ROIC, first three-year median: 6.2%

- ROIC, last three-year median: 10.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL -1.05

- FY2017: BRL -0.17

- FY2018: BRL 0.17

- FY2019: BRL 0.50

- FY2020: BRL 0.16

- FY2021: BRL 0.08

- FY2022: BRL 0.28

- FY2023: BRL 0.39

- FY2024: BRL -0.52

- FY2025: BRL 0.46

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -9.5%

- Receivables to sales index (DSRI): 2.53×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 7.04×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.46×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.9%

- FY2017: -9.8%

- FY2018: -9.0%

- FY2019: -8.4%

- FY2020: -5.7%

- FY2021: -6.6%

- FY2022: -9.4%

- FY2023: -9.6%

- FY2024: -17.0%

- FY2025: -9.5%

## Holders

## Price story

Down 20% since Jul 2023 · sales +3.9%

Story as of 2026-10-16T10:00:08.062Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +3.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: BRL 5.9B 

- FY2018: BRL 6.6B 

- FY2019: BRL 7.1B 

- FY2020: BRL 7.0B 

- FY2021: BRL 7.4B 

- FY2022: BRL 9.8B 

- FY2023: BRL 11B 

- FY2024: BRL 14B 

- FY2025: BRL 14B 

- FY2026: BRL 14B 

### Gross margin · FY2026

gross margin 45.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 29.0% 

- FY2018: 32.2% 

- FY2019: 34.4% 

- FY2020: 32.2% 

- FY2021: 28.1% 

- FY2022: 32.0% 

- FY2023: 37.5% 

- FY2024: 45.9% 

- FY2025: 45.4% 

- FY2026: 45.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in railroads; annual sales are BRL 13.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); FY2025: revenue 13847776000; grossProfit 6285627000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RAIL3.SA: Rumo S.A., through its subsidiaries, engages in the rail logistics operation. The company operates through North Operations, South Operations, and Container Operations segments. The North Operations segment is involved in the railway, highway, and transshipment operations. The South Operations segment comprises of rail and transhipment operations in the area of Rumo Malha Sul and Rumo Malha Oeste concessions. The Container Operations segment engages in the rail and road transport, and container logistics and operations. It offers logistics services primarily for exporting commodities, including integrated solution for transportation, movement, storage, and shipment from the production centers to the main ports in the south and southeast of Brazil. The company was incorporated in 1997 and is headquartered in Curitiba, Brazil.

### Why customers stay

Margins ranged from 37.5% to 45.9% during 2023–25; it earns 7.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); FY2023: grossProfit / revenue = 37.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); FY2024: grossProfit / revenue = 45.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); FY2025: grossProfit / revenue = 45.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); 10-year return on capital observations [[2017,0.06363660000329062],[2018,0.062368714502545074],[2019,0.07654583180296898],[2020,0.038246326899421784],[2021,0.04863727250389603],[2022,0.06640157297801531],[2023,0.08373380419615187],[2024,0.13604369486933826],[2025,0.10044765029670387],[2026,0.09751097647771186]]; median 0.07147370239049214. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); FY2018: growth capex 577888000; upkeep 1418858000; owner earnings 264357000. Growth capex / owner earnings = 2.186013610382929.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); Dividend observations: [[2016,777000],[2017,2069000],[2018,3346000],[2019,4233000],[2020,1959000],[2021,7084000],[2022,39321000],[2023,124992000],[2024,174244000],[2025,1506065000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 24.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RAIL3.SA SharesStats.PercentInsiders = 24.198 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.5 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:46.431Z); Closing price 18.58 BRL; reporting-to-trading FX 1; FY2025 annual sales per share 7.439029244700157; price multiple 2.4976377143882162. FY2025 cash earnings/share -2.076269762859917. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-10: BRL 7.14 per share

- 2016-11: BRL 6.36 per share

- 2016-12: BRL 6.14 per share

- 2017-01: BRL 7.50 per share

- 2017-02: BRL 8.58 per share

- 2017-03: BRL 8.55 per share

- 2017-04: BRL 8.73 per share

- 2017-05: BRL 8.48 per share

- 2017-06: BRL 8.65 per share

- 2017-07: BRL 10.34 per share

- 2017-08: BRL 10.33 per share

- 2017-09: BRL 12.09 per share

- 2017-10: BRL 12.70 per share

- 2017-11: BRL 13.02 per share

- 2017-12: BRL 12.97 per share

- 2018-01: BRL 14.27 per share

- 2018-02: BRL 14.24 per share

- 2018-03: BRL 13.15 per share

- 2018-04: BRL 14.85 per share

- 2018-05: BRL 13.81 per share

- 2018-06: BRL 14.10 per share

- 2018-07: BRL 14.85 per share

- 2018-08: BRL 14.23 per share

- 2018-09: BRL 14.98 per share

- 2018-10: BRL 16.65 per share

- 2018-11: BRL 17.44 per share

- 2018-12: BRL 17.00 per share

- 2019-01: BRL 19.65 per share

- 2019-02: BRL 19.46 per share

- 2019-03: BRL 19.15 per share

- 2019-04: BRL 18.10 per share

- 2019-05: BRL 19.36 per share

- 2019-06: BRL 20.73 per share

- 2019-07: BRL 21.92 per share

- 2019-08: BRL 22.10 per share

- 2019-09: BRL 24.50 per share

- 2019-10: BRL 22.80 per share

- 2019-11: BRL 24.43 per share

- 2019-12: BRL 26.10 per share

- 2020-01: BRL 23.20 per share

- 2020-02: BRL 21.12 per share

- 2020-03: BRL 19.65 per share

- 2020-04: BRL 19.79 per share

- 2020-05: BRL 22.53 per share

- 2020-06: BRL 22.49 per share

- 2020-07: BRL 22.22 per share

- 2020-08: BRL 22.60 per share

- 2020-09: BRL 19.06 per share

- 2020-10: BRL 18.34 per share

- 2020-11: BRL 18.96 per share

- 2020-12: BRL 19.24 per share

- 2021-01: BRL 20.30 per share

- 2021-02: BRL 18.10 per share

- 2021-03: BRL 20.25 per share

- 2021-04: BRL 20.00 per share

- 2021-05: BRL 20.67 per share

- 2021-06: BRL 19.15 per share

- 2021-07: BRL 20.66 per share

- 2021-08: BRL 18.72 per share

- 2021-09: BRL 16.79 per share

- 2021-10: BRL 15.99 per share

- 2021-11: BRL 17.57 per share

- 2021-12: BRL 17.76 per share

- 2022-01: BRL 15.62 per share

- 2022-02: BRL 15.50 per share

- 2022-03: BRL 18.55 per share

- 2022-04: BRL 16.37 per share

- 2022-05: BRL 17.68 per share

- 2022-06: BRL 15.97 per share

- 2022-07: BRL 17.54 per share

- 2022-08: BRL 20.21 per share

- 2022-09: BRL 18.48 per share

- 2022-10: BRL 22.14 per share

- 2022-11: BRL 19.46 per share

- 2022-12: BRL 18.61 per share

- 2023-01: BRL 18.38 per share

- 2023-02: BRL 17.96 per share

- 2023-03: BRL 18.85 per share

- 2023-04: BRL 19.70 per share

- 2023-05: BRL 20.82 per share

- 2023-06: BRL 22.20 per share

- 2023-07: BRL 23.24 per share

- 2023-08: BRL 22.35 per share

- 2023-09: BRL 22.82 per share

- 2023-10: BRL 22.31 per share

- 2023-11: BRL 22.90 per share

- 2023-12: BRL 22.95 per share

- 2024-01: BRL 23.06 per share

- 2024-02: BRL 22.72 per share

- 2024-03: BRL 22.26 per share

- 2024-04: BRL 20.16 per share

- 2024-05: BRL 19.71 per share

- 2024-06: BRL 20.72 per share

- 2024-07: BRL 22.15 per share

- 2024-08: BRL 21.85 per share

- 2024-09: BRL 20.00 per share

- 2024-10: BRL 19.90 per share

- 2024-11: BRL 19.45 per share

- 2024-12: BRL 17.84 per share

- 2025-01: BRL 18.40 per share

- 2025-02: BRL 16.93 per share

- 2025-03: BRL 16.22 per share

- 2025-04: BRL 19.40 per share

- 2025-05: BRL 18.82 per share

- 2025-06: BRL 18.53 per share

- 2025-07: BRL 16.54 per share

- 2025-08: BRL 14.55 per share

- 2025-09: BRL 15.97 per share

- 2025-10: BRL 15.92 per share

- 2025-11: BRL 16.85 per share

- 2025-12: BRL 14.76 per share

- 2026-01: BRL 14.76 per share

- 2026-02: BRL 15.97 per share

- 2026-03: BRL 16.25 per share

- 2026-04: BRL 15.73 per share

- 2026-05: BRL 13.72 per share

- 2026-06: BRL 13.43 per share

- 2026-07: BRL 14.44 per share

- 2026-08: BRL 15.08 per share

- 2026-09: BRL 16.29 per share

- 2026-10: BRL 18.98 per share

## Annual estimated value (BRL per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:25.575Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.