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WLM Participações e Comércio de Máquinas e Veículos S.A (WLMM3) Fair Value & Analysis

Consumer Cyclical · BR · Market cap R$753M

WP WLM Participações e Comércio de Máquinas e Veículos S.A WLMM3 · SA
PriceR$19.00
Fair ValueR$49.27
Upside+159.3%
Quality50/100
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Mixed Growth
Thin margins · 2.7% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Narrow moat 33/100
Evidence: High Range R$25.85 – R$65.31 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 6 days ago

Fair value updated Aug 13, 2026, revised from R$52.25 to R$49.27 (−5.7%) since Jul 17, 2026. Share price −5.9% over the past month.

A solid business, screening 159% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R$25.85). The market is more pessimistic than our downside scenario.
  • Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R$25.85 to R$65.31) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

R$35.68 R$15.65 Fair Value R$49.27 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R$15.65 – R$35.68 · fair‑value band R$25.85 – R$65.31 · the R$19.00 price screens below the R$49.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

WLM Participações e Comércio de Máquinas e Veículos S.A (WLMM3) currently trades at R$19.00, while our model-based Fair Value estimate is R$49.27, implying the stock looks roughly 159.3% undervalued today. The Quality Score stands at 50/100 (solid quality), in the Consumer Cyclical 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, WLM Participações e Comércio de Máquinas e Veículos S.A generated revenue of R$2.9B at a net margin of 2.7%. Revenue declined 11.0% year over year. It earns a return on equity of 10.3%. Net debt stands at R$328M. Fundamentals as of Aug 13, 2026

Our scenario range runs from R$25.85 (bear case) to R$65.31 (bull case); at R$19.00, the current price sits below 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 about 21% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -5% fair-value upside, at 159%, WLMM3 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R$25.56 R$47.20 R$76.63 80
Residual Income R$18.22 R$20.16 R$28.13 76
Rev-Margin DCF R$35.62 R$69.38 R$115.75 74
All 25 models by family
DCF Models
FCF DCF R$26.42 R$47.91 R$89.67 38
5Y Revenue Exit R$35.62 R$70.97 R$121.29 39
5Y EBITDA Exit R$36.78 R$73.50 R$121.77 41
5Y P/E Exit R$31.23 R$61.38 R$97.54 38
10Y Revenue Exit R$30.38 R$61.46 R$113.51 36
10Y EBITDA Exit R$32.43 R$63.21 R$113.90 37
10Y P/E Exit R$28.98 R$54.82 R$94.31 35
Earnings-Based
Graham-Dodd R$16.15 R$90.24 R$125.31 54
Lynch FV R$25.24 R$36.05 R$46.87 50
PEG = 1.0 R$25.24 R$36.05 R$46.87 46
EPV R$27.16 R$31.22 R$34.59 59
Dividend Discount
Gordon GGM R$6.93 R$12.49 R$17.19 70
DDM Multi-Stage R$6.93 R$11.41 R$13.34 61
Multiples
P/E Multiple R$39.19 R$52.25 R$65.31 63
P/S Multiple R$30.28 R$40.37 R$50.47 58
P/B Multiple R$30.28 R$40.37 R$50.47 55
EV/EBIT R$61.81 R$83.27 R$104.73 53
EV/EBITDA R$45.86 R$62.00 R$78.15 54
EV/Revenue R$40.83 R$59.43 R$78.03 43
Asset-Based
NCAV (Graham) R$10.69 R$14.33 R$21.38 50
Growth DCF
Growth DCF R$25.56 R$47.20 R$76.63 80
Rev-Margin DCF R$35.62 R$69.38 R$115.75 74
Economic Profit
Residual Income R$18.22 R$20.16 R$28.13 76
ROIC Compounder R$29.91 R$40.39 R$52.89 72
Growth Earnings
Growth-Adj P/E R$38.76 R$55.36 R$71.97 68

Widest divergence: DCF Models (R$61.46) versus Dividend Discount (R$11.41). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) R$2.9B
Revenue growth (YoY) -11.0%
Net margin 2.7%
Return on equity 10.3%
Free cash flow R$92.5M FY2025
P/E ratio 9.7 as of Jul 17, 2026
More key figures
Operating margin 5.3%
EPS (TTM) R$2.13
EPS growth (YoY) -37.1%
Net debt R$328M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 52 · Market factors (momentum, volatility) 41

Profitability 51
Margins and returns on capital today
Quality Growth 23
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 46
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 82
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

WLM Participações e Comércio de Máquinas e Veículos S.A. engages in the marketing and sale of heavy trucks, road and urban bus chassis, marine, industrial and stationary engines and spare parts under the Scania brand in Brazil. The company provides maintenance services and specialized technical assistance.

Full company description

WLM Participações e Comércio de Máquinas e Veículos S.A. engages in the marketing and sale of heavy trucks, road and urban bus chassis, marine, industrial and stationary engines and spare parts under the Scania brand in Brazil. The company provides maintenance services and specialized technical assistance. In addition, it engages in the production, breeding, and sale of beef cattle; and cultivation and sale of grains. Further, it offers stationary equipment and spare parts, and maintenance services related products; rental of Scania-branded motor vehicles, operational leasing, without driver, power generators, machinery and equipment in general for the service, industry, commerce and agricultural sectors, as well as equity holdings. The company was formerly known as WLM Indústria e Comércio S.A. and changed its name to WLM Participações e Comércio de Máquinas e Veículos S.A. in December 2017. The company was incorporated in 1946 and is headquartered in Rio De Janeiro, Brazil. WLM Participações e Comércio de Máquinas e Veículos S.A. operates as a subsidiary of Sajuthá-Rio Participações S.A.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

WLM Participações e Comércio de Máquinas e Veículos S.A reported revenue of R$3.0B in FY2025 versus R$1.9B in FY2021, a compound +13.0%/yr. Reported net income was R$86.5M in FY2025, compounding −4.9%/yr from FY2021.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
R$3.0B
Latest YoY
−3.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+25.4%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.8%
Revenue +13.0%/yr
FY21 R$1.9B
FY22 R$2.0B
FY23 R$2.4B
FY24 R$3.1B
FY25 R$3.0B
Net income −4.9%/yr
FY21 R$106M
FY22 R$117M
FY23 R$115M
FY24 R$129M
FY25 R$86.5M

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Cite: Fair Value Calculator (2026). "WLM Participações e Comércio de Máquinas e Veículos S.A Fair Value". https://www.fairvalue-calculator.com/stock/WLMM3

Peer Group

Auto & Truck Dealerships · 102 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 50 · Below median
Fair Value upside +159% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 4.3% · Above median
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Auto & Truck Dealerships median · lower = cheaper

P/E (TTM) 9.7× · Cheaper than 75% of peers
P/B 0.97× · Cheaper than median
P/S (TTM) 0.26× · Cheaper than median
P/FCF 1.6× · Cheaper than median
EV/EBITDA 4.6× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 30
FUTURE0 · sector 9
PAST41 · sector 20
HEALTH86 · sector 90
DIVIDEND86 · sector 66

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 Auto & Truck Dealerships stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Carvana Co CVNA $72.48 $24.58 -66%
Penske Automotive Group PAG $218.00 $217.41 -0%
D'Ieteren Group DIE €175.00 €105.40 -40%
Hotai Motor Co 2207 524.00 TWD 558.82 TWD +7%
CarMax, Inc KMX $58.71 $29.44 -50%
Lithia Motors, Inc LAD $378.55 $498.50 +32%
AutoNation, Inc AN $208.62 $329.77 +58%
Rush Enterprises, Inc RUSHA $80.63 $66.27 -18%
Valvoline Inc VVV $33.30 $24.55 -26%
OPENLANE, Inc OPLN $35.33 $33.46 -5%

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Frequently asked questions

Is WLM Participações e Comércio de Máquinas e Veículos S.A (WLMM3) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R$49.27 versus a price of R$19.00, about +159% (undervalued).
What is the fair value of WLMM3?
Our model-based fair value for WLM Participações e Comércio de Máquinas e Veículos S.A is R$49.27 (as of Aug 13, 2026), built from audited fundamentals. The current price: R$19.00.
What is the quality score of WLMM3?
WLM Participações e Comércio de Máquinas e Veículos S.A has a Quality Score of 50/100. 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 WLM Participações e Comércio de Máquinas e Veículos S.A (WLMM3)?
WLM Participações e Comércio de Máquinas e Veículos S.A reported trailing-twelve-month revenue of about R$2.9B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of WLMM3?
The net profit margin of WLM Participações e Comércio de Máquinas e Veículos S.A is about 2.7%, meaning it keeps roughly 2.7% of revenue as net income. Based on the latest reported figures.

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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