Lojas Renner S.A. (LREN3.SA) stock analysis

In our weekly check, Lojas Renner S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.

About Lojas Renner S.A.

Lojas Renner S.A. is a Consumer Cyclical company (Department Stores) based in Brazil, listed on SAO as LREN3.SA.

What our checks show for LREN3.SA

Red flags

• The gross margin fell by 3.3 points, to 55.1%: costs are rising faster than prices.
• The price swings a lot: 66.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 82% from a peak. Would you have held through that?

Warning signs

• Analysts expect the net margin to shrink by 0.1 points from today's 9.4%.
• The net margin is only 9.4%: little room if costs rise.
• A small company (market value $1.59 billion): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.

Strengths

• Net debt is only 0.6x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 8.7 times over.
• The net margin rose by 3.4 points over 5 years, to 9.4%.
• Operating cash flow is 2.08x net profit: the profit arrives as real cash.
• Free cash flow is 16.5% of revenue: cash for dividends, buybacks or growth.
• The price is 5.9 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-05

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Questions

What grade does Lojas Renner S.A. (LREN3.SA) have?

In our weekly check, Lojas Renner S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LREN3.SA stock?

This week's biggest flags for Lojas Renner S.A.: Gross margin falling, Very volatile, Deep past fall. In total 7 of 25 checks show a warning or a red flag.

What does Lojas Renner S.A. do?

Lojas Renner S.A. is a Consumer Cyclical company (Department Stores) based in Brazil, listed on SAO as LREN3.SA.

When does Lojas Renner S.A. report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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