Rede D'Or São Luiz S.A. (RDOR3.SA) stock analysis

In our weekly check, Rede D'Or São Luiz S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7.

About Rede D'Or São Luiz S.A.

Rede D'Or São Luiz S.A. is a Healthcare company (Medical - Care Facilities) based in Brazil, listed on SAO as RDOR3.SA.

What our checks show for RDOR3.SA

Red flags

• Net debt is 3.4x a year of EBITDA (debt/equity 2.65). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.8 times: a weak year could make the payments hard.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-7% of revenue): the business spends more cash than it brings in.
• The dividend takes 146% of profit: little cushion if profit falls.
• The stock has fallen as much as 73% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 1.2 points, to 22.4%: costs are rising faster than prices.
• The net margin is only 8.3%: little room if costs rise.
• The price swings a lot: 35.2% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• Analysts expect earnings per share to grow about 17.1% a year over the next years.
• Revenue grew 36% a year over the last 3 years.
• Earnings per share grew 60.5% a year over the last 3 years.
• Net profit grew 59.2% a year over the last 3 years.
• A large company: market value $19.05 billion.
• Beta 0.61: the stock usually moves less than the market.

Next earnings report: 2026-11-12

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Questions

What grade does Rede D'Or São Luiz S.A. (RDOR3.SA) have?

In our weekly check, Rede D'Or São Luiz S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RDOR3.SA stock?

This week's biggest flags for Rede D'Or São Luiz S.A.: High debt, Weak interest cover, Profits not backed by cash. In total 11 of 25 checks show a warning or a red flag.

What does Rede D'Or São Luiz S.A. do?

Rede D'Or São Luiz S.A. is a Healthcare company (Medical - Care Facilities) based in Brazil, listed on SAO as RDOR3.SA.

When does Rede D'Or São Luiz S.A. report earnings next?

The next earnings report is expected on 2026-11-12. 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 2026-10-24

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