Magazine Luiza Sa Stock Buy Hold or Sell Recommendation
| MGLUY Stock | USD 5.60 1.10 16.42% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Magazine Luiza SA is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Magazine Luiza SA given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Magazine Luiza SA, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Magazine Luiza Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Magazine and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Magazine Luiza SA. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.
Magazine |
Execute Magazine Luiza Buy or Sell Advice
The Magazine recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Magazine Luiza SA. Macroaxis does not own or have any residual interests in Magazine Luiza SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Magazine Luiza's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Moderately volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Magazine Luiza Trading Alerts and Improvement Suggestions
| Magazine Luiza SA generated a negative expected return over the last 90 days | |
| Magazine Luiza SA has high historical volatility and very poor performance | |
| Magazine Luiza SA has high likelihood to experience some financial distress in the next 2 years | |
| Magazine Luiza SA has accumulated about 1.92 B in cash with (4.36 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.15. |
Magazine Luiza Returns Distribution Density
The distribution of Magazine Luiza's historical returns is an attempt to chart the uncertainty of Magazine Luiza's future price movements. The chart of the probability distribution of Magazine Luiza daily returns describes the distribution of returns around its average expected value. We use Magazine Luiza SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Magazine Luiza returns is essential to provide solid investment advice for Magazine Luiza.
| Mean Return | -0.65 | Value At Risk | -4.93 | Potential Upside | 0.00 | Standard Deviation | 2.32 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Magazine Luiza historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Magazine Luiza Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Magazine Luiza or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Magazine Luiza's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Magazine pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.65 | |
β | Beta against Dow Jones | -0.17 | |
σ | Overall volatility | 3.74 | |
Ir | Information ratio | -0.32 |
Magazine Luiza Volatility Alert
Magazine Luiza SA exhibits very low volatility with skewness of -3.69 and kurtosis of 18.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Magazine Luiza's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Magazine Luiza's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Magazine Luiza Fundamentals Vs Peers
Comparing Magazine Luiza's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Magazine Luiza's direct or indirect competition across all of the common fundamentals between Magazine Luiza and the related equities. This way, we can detect undervalued stocks with similar characteristics as Magazine Luiza or determine the pink sheets which would be an excellent addition to an existing portfolio. Peer analysis of Magazine Luiza's fundamental indicators could also be used in its relative valuation, which is a method of valuing Magazine Luiza by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Magazine Luiza to competition |
| Fundamentals | Magazine Luiza | Peer Average |
| Return On Equity | -0.0341 | -0.31 |
| Return On Asset | 0.0079 | -0.14 |
| Profit Margin | (0.01) % | (1.27) % |
| Operating Margin | 0.01 % | (5.51) % |
| Current Valuation | 5.21 B | 16.62 B |
| Shares Outstanding | 1.67 B | 571.82 M |
| Price To Earning | 36.84 X | 28.72 X |
| Price To Book | 1.81 X | 9.51 X |
| Price To Sales | 0.09 X | 11.42 X |
| Revenue | 35.28 B | 9.43 B |
| Gross Profit | 8.49 B | 27.38 B |
| EBITDA | 996.2 M | 3.9 B |
| Net Income | 590.66 M | 570.98 M |
| Cash And Equivalents | 1.92 B | 2.7 B |
| Cash Per Share | 1.15 X | 5.01 X |
| Total Debt | 6.38 B | 5.32 B |
| Debt To Equity | 0.94 % | 48.70 % |
| Current Ratio | 1.64 X | 2.16 X |
| Book Value Per Share | 6.47 X | 1.93 K |
| Cash Flow From Operations | (4.36 B) | 971.22 M |
| Earnings Per Share | 0.02 X | 3.12 X |
| Number Of Employees | 40 K | 18.84 K |
| Beta | 0.68 | -0.15 |
| Market Capitalization | 5.19 B | 19.03 B |
| Total Asset | 38.38 B | 29.47 B |
| Annual Yield | 0.02 % | |
| Net Asset | 38.38 B | |
| Last Dividend Paid | 0.015 |
Magazine Luiza Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Magazine . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.84 | |||
| Day Median Price | 5.6 | |||
| Day Typical Price | 5.6 | |||
| Price Action Indicator | (0.55) | |||
| Period Momentum Indicator | (1.10) |
About Magazine Luiza Buy or Sell Advice
When is the right time to buy or sell Magazine Luiza SA? Buying financial instruments such as Magazine Pink Sheet isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
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Beer and Liquor
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Additional Tools for Magazine Pink Sheet Analysis
When running Magazine Luiza's price analysis, check to measure Magazine Luiza'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 Magazine Luiza is operating at the current time. Most of Magazine Luiza's value examination focuses on studying past and present price action to predict the probability of Magazine Luiza's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Magazine Luiza's price. Additionally, you may evaluate how the addition of Magazine Luiza to your portfolios can decrease your overall portfolio volatility.