# Localiza Rent a Car (RENT3.SA)

Canonical: https://gigainvestors.com/s/RENT3.SA

Analysis as of: 2026-10-16T07:35:44.655Z. 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 49.92 per share; close as of 2026-10-15.

Estimated value: low BRL 62.69 per share, central BRL 66.51 per share, high BRL 70.92 per share. Buy at or below the central value BRL 66.51 per share. Valuation as of 2026-10-16T07:35:44.655Z; scenarios are not confidence intervals.

Expected annual return: 22.3% at the stated quote. About 22.3% a year at today's price (required return 16.5%). required return 16.5% a year (BR 10-year bond 12.5% + 4 points).

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.16×

- FY2019: 0.15×

- FY2020: 0.17×

- FY2021: 0.29×

- FY2022: 0.25×

- FY2023: 0.20×

- FY2024: 0.16×

- FY2025: 0.19×

- LTM to Jun 2026: 0.18×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 11.2%

- ROIC, second-lowest year: 9.1%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 27.7%

- Recent gross margin (lower of latest and 3-year median): 26.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.7%

- ROIC including acquisitions, ten-year median: -0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.8%

- FY2017: 11.6%

- FY2018: 11.2%

- FY2019: 9.1%

- FY2020: 10.0%

- FY2021: 14.4%

- FY2022: 8.4%

- FY2023: 11.7%

- FY2024: 11.1%

- FY2025: 9.9%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -2.19×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL -21B

- Net income, five-year total: BRL 9.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -1.9 pp

- Working capital / revenue, final three-year average: -13.2%

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

- FY2021: -1.75×

- FY2022: -5.16×

- FY2023: -5.72×

- FY2024: 0.14×

- FY2025: 1.40×

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.6% vs 11.1%

- Per-share earnings: 0.59 to 1.72 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.5%

- Ordinary dilution, 5-year annual growth: 7.2%

- Market cap gain: BRL 39B

- Cumulative retained earnings: BRL 6.6B

- Diluted shares, 10-year annual growth: 4.5%

- Diluted shares, 5-year annual growth: 7.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.2%

- Per-share value change: BRL 1.12

- Per-share value, starting three-year median: BRL 0.59

- Per-share value, ending three-year median: BRL 1.72

- Buybacks concentrated in cheaper years (correlation): -0.10

- Average buyback yield: 0.7%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: BRL 8.8B

- Cumulative net income, 10 years: BRL 13B

- ROIC, first three-year median: 11.6%

- ROIC, last three-year median: 11.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.59

- FY2017: BRL 0.72

- FY2018: BRL 0.94

- FY2019: BRL 1.11

- FY2020: BRL 1.39

- FY2021: BRL 2.71

- FY2022: BRL 1.88

- FY2023: BRL 1.70

- FY2024: BRL 1.72

- FY2025: BRL 1.76

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.71×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.35×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 8.6%

- FY2017: 26.4%

- FY2018: 5.2%

- FY2019: 19.2%

- FY2020: 2.8%

- FY2021: 21.4%

- FY2022: 16.7%

- FY2023: 14.5%

- FY2024: 1.3%

- FY2025: -1.6%

## Holders

## Price story

Down 29% since Oct 2022 · sales +10.9%

Story as of 2026-10-16T10:00:05.979Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.2% a year for ten years

### Sales · FY2025–2026

sales +10.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: BRL 6.1B 

- FY2018: BRL 7.6B 

- FY2019: BRL 10B 

- FY2020: BRL 10B 

- FY2021: BRL 11B 

- FY2022: BRL 18B 

- FY2023: BRL 29B 

- FY2024: BRL 37B 

- FY2025: BRL 42B 

- FY2026: BRL 46B 

### Gross margin · FY2025

gross margin 26.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.1% 

- FY2017: 27.2% 

- FY2018: 27.1% 

- FY2019: 24.6% 

- FY2020: 28.1% 

- FY2021: 43.1% 

- FY2022: 37.4% 

- FY2023: 28.6% 

- FY2024: 23.5% 

- FY2025: 26.3% 

## Owner memo

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

### How it makes money

Operates in rental & leasing services; annual sales are BRL 41.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2025: revenue 41781588000; grossProfit 10977125000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RENT3.SA: 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.

### Why customers stay

Margins ranged from 23.5% to 28.6% during 2023–25; it earns 11.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2023: grossProfit / revenue = 28.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2024: grossProfit / revenue = 23.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2025: grossProfit / revenue = 26.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); 10-year return on capital observations [[2016,0.13840004929242097],[2017,0.11644526571704407],[2018,0.11224381870743864],[2019,0.09103300800274775],[2020,0.1002699820774885],[2021,0.1437794164124075],[2022,0.08394004744410782],[2023,0.11716030801079289],[2024,0.11099073263921039],[2025,0.09877208930862251]]; median 0.11161727567332452. 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 2026-10-16T07:35:44.655Z); FY2016: growth capex 0; upkeep 126590000; owner earnings 527195000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2017: growth capex 0; upkeep 175005000; owner earnings 601737000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2020: growth capex 0; upkeep 98763000; owner earnings 240082800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2024: growth capex 0; upkeep 121779000; owner earnings 261251200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); FY2025: growth capex 0; upkeep 306634000; owner earnings 2634967000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); Dividend observations: [[2016,1042000],[2017,166866000],[2018,172314000],[2019,7223000],[2020,269112000],[2021,18128000],[2022,1357128000],[2023,1341977000],[2024,1294383000],[2025,1755556000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 18.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RENT3.SA SharesStats.PercentInsiders = 18.925 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.2% yearly over ten years; actual growth was 14.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.655Z); Ten-year compound average after fade. Initial solved rate -0.07138638480302723. Price 49.92; FX 1; discount 0.16535; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6519455925740926 → FY2025 2.4678334716960775. Closing-price date 2026-10-15.

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

- 2016-11: BRL 10.43 per share

- 2016-12: BRL 10.30 per share

- 2017-01: BRL 11.09 per share

- 2017-02: BRL 11.59 per share

- 2017-03: BRL 12.54 per share

- 2017-04: BRL 14.23 per share

- 2017-05: BRL 13.74 per share

- 2017-06: BRL 14.27 per share

- 2017-07: BRL 16.40 per share

- 2017-08: BRL 18.82 per share

- 2017-09: BRL 18.23 per share

- 2017-10: BRL 18.29 per share

- 2017-11: BRL 18.99 per share

- 2017-12: BRL 20.91 per share

- 2018-01: BRL 24.44 per share

- 2018-02: BRL 24.59 per share

- 2018-03: BRL 27.22 per share

- 2018-04: BRL 26.44 per share

- 2018-05: BRL 23.44 per share

- 2018-06: BRL 22.49 per share

- 2018-07: BRL 22.51 per share

- 2018-08: BRL 20.41 per share

- 2018-09: BRL 21.57 per share

- 2018-10: BRL 27.25 per share

- 2018-11: BRL 25.51 per share

- 2018-12: BRL 28.20 per share

- 2019-01: BRL 31.57 per share

- 2019-02: BRL 32.75 per share

- 2019-03: BRL 31.34 per share

- 2019-04: BRL 34.31 per share

- 2019-05: BRL 36.06 per share

- 2019-06: BRL 38.85 per share

- 2019-07: BRL 41.71 per share

- 2019-08: BRL 44.59 per share

- 2019-09: BRL 43.09 per share

- 2019-10: BRL 40.93 per share

- 2019-11: BRL 42.69 per share

- 2019-12: BRL 47.19 per share

- 2020-01: BRL 53.38 per share

- 2020-02: BRL 49.31 per share

- 2020-03: BRL 26.18 per share

- 2020-04: BRL 34.03 per share

- 2020-05: BRL 38.30 per share

- 2020-06: BRL 40.72 per share

- 2020-07: BRL 50.68 per share

- 2020-08: BRL 48.00 per share

- 2020-09: BRL 56.40 per share

- 2020-10: BRL 60.40 per share

- 2020-11: BRL 66.90 per share

- 2020-12: BRL 68.63 per share

- 2021-01: BRL 63.58 per share

- 2021-02: BRL 57.73 per share

- 2021-03: BRL 59.45 per share

- 2021-04: BRL 64.00 per share

- 2021-05: BRL 62.36 per share

- 2021-06: BRL 63.70 per share

- 2021-07: BRL 61.86 per share

- 2021-08: BRL 55.20 per share

- 2021-09: BRL 54.21 per share

- 2021-10: BRL 45.09 per share

- 2021-11: BRL 50.87 per share

- 2021-12: BRL 52.75 per share

- 2022-01: BRL 58.33 per share

- 2022-02: BRL 57.25 per share

- 2022-03: BRL 60.81 per share

- 2022-04: BRL 52.69 per share

- 2022-05: BRL 57.25 per share

- 2022-06: BRL 52.16 per share

- 2022-07: BRL 57.34 per share

- 2022-08: BRL 60.53 per share

- 2022-09: BRL 60.84 per share

- 2022-10: BRL 70.25 per share

- 2022-11: BRL 59.85 per share

- 2022-12: BRL 53.03 per share

- 2023-01: BRL 59.02 per share

- 2023-02: BRL 55.31 per share

- 2023-03: BRL 53.28 per share

- 2023-04: BRL 57.88 per share

- 2023-05: BRL 61.90 per share

- 2023-06: BRL 68.34 per share

- 2023-07: BRL 67.07 per share

- 2023-08: BRL 63.11 per share

- 2023-09: BRL 58.50 per share

- 2023-10: BRL 50.82 per share

- 2023-11: BRL 59.98 per share

- 2023-12: BRL 63.60 per share

- 2024-01: BRL 54.12 per share

- 2024-02: BRL 53.00 per share

- 2024-03: BRL 54.68 per share

- 2024-04: BRL 49.03 per share

- 2024-05: BRL 42.73 per share

- 2024-06: BRL 42.00 per share

- 2024-07: BRL 43.83 per share

- 2024-08: BRL 41.37 per share

- 2024-09: BRL 41.00 per share

- 2024-10: BRL 42.02 per share

- 2024-11: BRL 37.58 per share

- 2024-12: BRL 32.20 per share

- 2025-01: BRL 30.87 per share

- 2025-02: BRL 28.10 per share

- 2025-03: BRL 33.59 per share

- 2025-04: BRL 42.96 per share

- 2025-05: BRL 42.96 per share

- 2025-06: BRL 40.52 per share

- 2025-07: BRL 34.63 per share

- 2025-08: BRL 35.84 per share

- 2025-09: BRL 39.45 per share

- 2025-10: BRL 39.44 per share

- 2025-11: BRL 45.25 per share

- 2025-12: BRL 43.57 per share

- 2026-01: BRL 48.39 per share

- 2026-02: BRL 50.76 per share

- 2026-03: BRL 46.98 per share

- 2026-04: BRL 45.91 per share

- 2026-05: BRL 42.02 per share

- 2026-06: BRL 41.54 per share

- 2026-07: BRL 37.61 per share

- 2026-08: BRL 35.07 per share

- 2026-09: BRL 40.50 per share

- 2026-10: BRL 51.39 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 9.10 per share, central BRL 11.11 per share, high BRL 11.83 per share

- FY2017: low BRL 9.64 per share, central BRL 10.06 per share, high BRL 10.54 per share

- FY2018: low BRL 10.99 per share, central BRL 11.52 per share, high BRL 12.13 per share

- FY2019: low BRL 13.18 per share, central BRL 13.84 per share, high BRL 14.60 per share

- FY2020: low BRL 6.91 per share, central BRL 7.04 per share, high BRL 7.19 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 2026-10-15T06:41:25.876Z 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.