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Mills Locação, Serviços e Logística S.A (MILS3) Fair Value & Analysis

Industrials · BR · Market cap R$3.5B

ML Mills Locação, Serviços e Logística S.A MILS3 · SA
PriceR$15.60
Fair ValueR$22.90
Upside+46.8%
Quality44/100
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Mixed Growth
Highly profitable · 22.8% net margin
Moderate debt · generates free cash flow
2.61% dividend yield
Ranks above peers (10/15)
Wide moat 83/100
Evidence: High Range R$14.18 – R$39.38 Share as image

Fair value as of: Jul 12, 2026

From 24 valuation models · updated 28 days ago

Fair value updated Jul 12, 2026, revised from R$22.94 to R$22.90 (−0.2%) since Jun 24, 2026. Share price +1.6% over the past month.

Below-average quality, screening 47% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The model range is unusually wide (R$14.18 to R$39.38). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

R$15.81 R$4.03 Fair Value R$22.90 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range R$4.03 – R$15.81 · fair‑value band R$14.18 – R$39.38 · the R$15.60 price screens below the R$22.90 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Mills Locação, Serviços e Logística S.A (MILS3) currently trades at R$15.60, while our model-based Fair Value estimate is R$22.90, implying the stock looks roughly 46.8% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Mills Locação, Serviços e Logística S.A generated revenue of R$1.9B at a net margin of 22.8%. Revenue grew 11.8% year over year. It earns a return on equity of 26.3%. Net debt stands at R$1.4B. Fundamentals as of Jul 12, 2026

Our scenario range runs from R$14.18 (bear case) to R$39.38 (bull case); at R$15.60, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 65% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -21% fair-value upside, at 47%, MILS3 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF R$5.05 R$12.63 80
Residual Income R$8.38 R$11.12 R$40.84 76
Rev-Margin DCF R$3.27 R$11.58 R$23.05 74
All 24 models by family
DCF Models
FCF DCF R$0.1000 R$4.85 R$15.12 38
Owner Earnings R$25.04 R$53.99 R$106.61 31
5Y Revenue Exit R$3.27 R$12.02 R$24.62 39
5Y EBITDA Exit R$20.89 R$50.62 R$90.50 41
5Y P/E Exit R$9.65 R$26.00 R$45.96 38
10Y Revenue Exit R$1.80 R$9.80 R$23.46 36
10Y EBITDA Exit R$13.88 R$38.43 R$80.67 37
10Y P/E Exit R$6.40 R$20.16 R$41.99 35
Earnings-Based
Graham-Dodd R$8.98 R$50.59 R$70.28 54
Lynch FV R$14.18 R$20.26 R$26.33 50
PEG = 1.0 R$14.18 R$20.26 R$26.33 46
EPV R$14.52 R$17.68 R$20.41 59
Multiples
P/E Multiple R$20.80 R$27.73 R$34.66 63
P/S Multiple R$12.10 R$16.13 R$20.17 58
P/B Multiple R$16.84 R$22.45 R$28.06 55
EV/EBIT R$29.06 R$40.59 R$52.11 53
EV/EBITDA R$32.73 R$45.48 R$58.23 54
EV/Revenue R$4.64 R$8.99 R$13.35 43
Asset-Based
NCAV (Graham) R$3.46 R$4.63 R$6.91 50
Growth DCF
Growth DCF R$5.05 R$12.63 80
Rev-Margin DCF R$3.27 R$11.58 R$23.05 74
Economic Profit
Residual Income R$8.38 R$11.12 R$40.84 76
ROIC Compounder R$17.90 R$27.28 R$40.28 72
Growth Earnings
Growth-Adj P/E R$21.21 R$30.29 R$39.38 68

Widest divergence: Growth Earnings (R$30.29) versus Asset-Based (R$4.63). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) R$1.9B
Revenue growth (YoY) +11.8%
Net margin 22.8%
Return on equity 26.3%
Free cash flow R$96.6M FY2025
P/E ratio 8.5
More key figures
Operating margin 41.3%
EPS (TTM) R$1.80
Dividend yield 2.7%
EPS growth (YoY) +185%
Net debt R$1.4B FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 41 · Market factors (momentum, volatility) 80

Profitability 53
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 93
Distance to the 52-week high (market factor)
Net Issuance 25
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Mills Locação, Serviços e Logística S.A. operates as a machinery and equipment rental company in Brazil. It rents, sells, imports, and exports steel and aluminum tubular structures, shoring and access equipment for civil construction works, and reusable concrete forms.

Full company description

Mills Locação, Serviços e Logística S.A. operates as a machinery and equipment rental company in Brazil. It rents, sells, imports, and exports steel and aluminum tubular structures, shoring and access equipment for civil construction works, and reusable concrete forms. The company also develops related engineering projects and provides supervisory and optional assembly services. Additionally, it sells, rents, and distributes elevating work platforms, related parts, new, and used cars. It also offers heavy machinery, backhoe, compact rollers, skid steer loaders, tugs, generators, compressors, crawler and agricultural tractors, excavators, wheel loaders, motor graders, forklifts, and pallet trucks. Further, it provides freight, maintenance, training, telemetry, remote operation, and consulting services and solutions. The company was formerly known as Mills Estruturas e Serviços de Engenharia S.A. and changed its name to Mills Locação, Serviços e Logística S.A. in July 2022. Mills Locação, Serviços e Logística S.A. was founded in 1952 and is based in Rio de Janeiro, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mills Locação, Serviços e Logística S.A reported revenue of R$1.8B in FY2025 versus R$738M in FY2021, a compound +25.6%/yr. Reported net income was R$301M in FY2025, compounding +30.9%/yr from FY2021.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
R$1.8B
Latest YoY
+16.7%
Avg. growth/yr (3Y)
+18.9%
Avg. growth/yr (5Y)
+29.4%
Avg. growth/yr (18Y)
+13.4%
Revenue +25.6%/yr
FY21 R$738M
FY22 R$1.1B
FY23 R$1.4B
FY24 R$1.6B
FY25 R$1.8B
Net income +30.9%/yr
FY21 R$102M
FY22 R$217M
FY23 R$278M
FY24 R$285M
FY25 R$301M

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Cite: Fair Value Calculator (2026). "Mills Locação, Serviços e Logística S.A Fair Value". https://www.fairvalue-calculator.com/stock/MILS3

Peer Group

Rental & Leasing Services · 97 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside +47% · Above median
Return on equity (TTM) 26% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 2.6% · Above median
Debt / equity 1.08× · Higher than median

Valuation Multiples vs Rental & Leasing Services median · lower = cheaper

P/E (TTM) 8.6× · Cheaper than 75% of peers
P/B 2.23× · Pricier than median
P/S (TTM) 1.87× · Pricier than median
P/FCF 7.1× · Pricier than median
EV/EBITDA 5.3× · Cheaper than median
PEG 0.55× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 96 · sector 49
FUTURE 59 · sector 16
PAST 100 · sector 26
HEALTH 46 · sector 70
DIVIDEND 52 · sector 34

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Rental & Leasing Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
United Rentals, Inc URI $1,045 $449.86 -57%
Sunbelt Rentals Holdings SUNB $73.41 $65.76 -10%
AerCap Holdings AER $146.97 $301.51 +105%
U-Haul Holding UHAL $67.35 $7.21 -89%
Ryder System, Inc R $273.06 $111.57 -59%
Ayvens AYV €11.57 €24.73 +114%
Localiza Rent a Car S.A RENT3 R$40.35 R$37.01 -8%
Element Fleet Management Corp EFN C$29.83 C$15.06 -50%
BOC Aviation Limited 2588 HK$77.40 HK$18.61 -76%
GATX Corporation GATX $178.48 $140.90 -21%

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Frequently asked questions

Is Mills Locação, Serviços e Logística S.A (MILS3) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of R$22.90 versus a price of R$15.60, about +47% (undervalued).
What is the fair value of MILS3?
Our model-based fair value for Mills Locação, Serviços e Logística S.A is R$22.90 (as of Jul 12, 2026), built from audited fundamentals. The current price is R$15.60.
What is the quality score of MILS3?
Mills Locação, Serviços e Logística S.A has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Mills Locação, Serviços e Logística S.A (MILS3)?
Mills Locação, Serviços e Logística S.A reported trailing-twelve-month revenue of about R$1.9B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of MILS3?
The net profit margin of Mills Locação, Serviços e Logística S.A is about 22.8%, meaning it keeps roughly 22.8% of revenue as net income. Based on the latest reported figures.
Does Mills Locação, Serviços e Logística S.A pay a dividend?
Mills Locação, Serviços e Logística S.A currently shows a dividend yield of about 2.65% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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