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Rumo S.A (RAIL3) Fair Value & Analysis

Industrials · BR · Market cap R$26.1B (≈ $5.1B) · ISIN BRRAILACNOR9

What is Rumo S.A really worth?

RS Rumo S.A RAIL3 · SA
PriceR$14.81
Fair ValueR$9.59
Upside−35.3%
Quality50/100

A solid business, but trading 54% above our fair value of R$9.59.

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Risks

!Mixed Growth (revenue 5y +14.7 %/yr)
!Thin margins · 7.3% net margin
!High debt · negative free cash flow
!Trails peers (5/13)
!Moderate moat 58/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 29 out of 100
!Weak on balance sheet: 20 out of 100

For context

·0.73% dividend yield
Evidence: Medium Range R$7.19 – R$11.98

Fair value as of: Aug 18, 2026

From 16 valuation models · updated 17 days ago

Share price +4.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (R$11.98). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

R$22.81 R$12.33 Fair Value R$9.59 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

60‑month range R$12.33 – R$22.81 · fair‑value band R$7.19 – R$11.98 · the R$14.81 price screens above the R$9.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

Rumo S.A (RAIL3) currently trades at R$14.81, while our model-based Fair Value estimate is R$9.59, implying the stock looks roughly 54.4% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Industrials sector. Bull case: the Dividend Discount group reads highest at a median of R$13.06 per share, and 6 of the 16 models we run sit above the R$14.81 price. Bear case: the Asset-Based group reads lowest at R$5.00, and 10 of the 16 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Rumo S.A generated revenue of R$14.2B at a net margin of 7.3%. Revenue grew 10.6% year over year. It earns a return on equity of 7.3%. Net debt stands at R$24.2B. Fundamentals as of Aug 18, 2026

Our scenario range runs from R$7.19 (bear case) to R$11.98 (bull case); at R$14.81, the current price sits above 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 24% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −47% fair-value upside, at −35%, RAIL3 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly R$0.3056 per share, which is 3.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
Residual Income best evidence R$5.97 R$6.23 R$6.39 76
EPV R$18.08 R$22.47 R$26.30 74
ROIC Compounder R$23.33 R$37.47 R$56.45 70
All 16 models by family
Earnings-Based
Graham-Dodd R$3.10 R$18.58 R$25.89 63
Lynch FV R$5.29 R$7.56 R$9.83 61
PEG = 1.0 R$5.29 R$7.56 R$9.83 57
EPV R$18.08 R$22.47 R$26.30 74
Dividend Discount
Gordon GGM R$7.45 R$15.49 R$24.58 66
DDM Multi-Stage R$7.45 R$13.06 R$16.26 66
Multiples
P/E Multiple R$7.19 R$9.59 R$11.98 63
P/S Multiple R$5.82 R$7.76 R$9.70 58
P/B Multiple R$5.82 R$7.76 R$9.70 55
EV/EBIT R$31.73 R$45.05 R$58.36 65
EV/EBITDA R$33.96 R$48.02 R$62.08 67
EV/Revenue R$1.18 R$5.21 R$9.24 48
Asset-Based
NCAV (Graham) R$3.73 R$5.00 R$7.46 54
Economic Profit
Residual Income best evidence R$5.97 R$6.23 R$6.39 76
ROIC Compounder R$23.33 R$37.47 R$56.45 70
Growth Earnings
Growth-Adj P/E R$7.70 R$11.00 R$14.30 67

Widest divergence: Dividend Discount (R$13.06) versus Asset-Based (R$5.00). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 26.4
P/S ratio 1.62 P/E × margin
EPS (TTM) R$0.5600 price ÷ EPS = P/E 26.4
Dividend yield 0.7% payout 19.4%
Net margin 6.1% FY2025
Return on equity 7.3% TTM
More key figures
Profitability
Return on assets (EBIT) 7.7% avg 5y
Operating margin 37.5% TTM
Growth
Revenue (TTM) R$14.2B TTM
Revenue growth (YoY) +10.6% 3y avg +12.1%
EPS growth (YoY) −40.1%
Balance sheet & cash flow
Free cash flow −R$134M FY2025
Net debt R$24.2B FY2025

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 45 · Market factors (momentum, volatility) 53

Profitability 25
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 44
Distance to the 52-week high (market factor)
Net Issuance 80
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Rumo S.A., through its subsidiaries, engages in the rail logistics operation. The company operates through North Operations, South Operations, and Container Operations segments. The North Operations segment is involved in the railway, highway, and transshipment operations.

Full company description

Rumo S.A., through its subsidiaries, engages in the rail logistics operation. The company operates through North Operations, South Operations, and Container Operations segments. The North Operations segment is involved in the railway, highway, and transshipment operations. The South Operations segment comprises of rail and transhipment operations in the area of Rumo Malha Sul and Rumo Malha Oeste concessions. The Container Operations segment engages in the rail and road transport, and container logistics and operations. It offers logistics services primarily for exporting commodities, including integrated solution for transportation, movement, storage, and shipment from the production centers to the main ports in the south and southeast of Brazil. The company was incorporated in 1997 and is headquartered in Curitiba, Brazil.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Rumo S.A reported revenue of R$13.8B in FY2025 versus R$7.4B in FY2021, a compound +16.8%/yr. Reported net income was R$847M in FY2025, compounding +54.0%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 38/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
R$13.8B
Latest YoY
−0.6%
Avg. revenue 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.
+12.1%
Avg. revenue 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.
+14.7%
Avg. revenue growth/yr (25Y) 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.
+15.1%
Value creation/yr (5Y, in BRL) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+21.4% (20.7 + 0.7)
Revenue +16.8%/yr
FY21 R$7.4B
FY22 R$9.8B
FY23 R$10.9B
FY24 R$13.9B
FY25 R$13.8B
Net income +54.0%/yr
FY21 R$151M
FY22 R$515M
FY23 R$720M
FY24 −R$959M
FY25 R$847M

RAIL3 screens 54% overvalued. Compare with Union Pacific Corporation →

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Cite: Fair Value Calculator (2026). "Rumo S.A Fair Value". https://www.fairvalue-calculator.com/stock/RAIL3

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Railroads · 111 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 −35% · Below median
Return on equity (TTM) 7% · Below median
Return on assets 7% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 38% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 0.7% · Bottom 25%
Debt / equity 1.61× · Higher than 75% of peers

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 26.4× · Pricier than median
P/B 1.89× · Pricier than median
P/S (TTM) 1.84× · Pricier than median
EV/EBITDA 5.5× · Cheaper than median

Strength profile in five axes (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
VALUE0 · sector 20
FUTURE53 · sector 20
PAST29 · sector 29
HEALTH20 · sector 91
DIVIDEND15 · sector 45

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Aug 18, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $307.41 $141.29 −54%
CSX Corporation CSX $48.99 $12.62 −74%
Canadian Pacific Kansas City Limited CP $94.12 $34.33 −64%
Canadian National Railway Company CNR C$175.06 C$92.68 −47%
Norfolk Southern Corporation NSC $332.96 $114.36 −66%
Westinghouse Air Brake Technologies Corporation WAB $297.57 $144.80 −51%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.87 ¥5.65 +16%
MTR Corporation 0066 HK$32.04 HK$17.85 −44%
CRRC Corporation 601766 ¥5.98 ¥9.53 +59%
Daqin Railway Co 601006 ¥4.72 ¥6.22 +32%

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Frequently asked questions

Is Rumo S.A (RAIL3) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of R$9.59 versus a price of R$14.81, about −35% upside (overvalued).
What is the fair value of RAIL3?
Our model-based fair value for Rumo S.A is R$9.59 (as of Aug 18, 2026), built from audited fundamentals. The current price: R$14.81.
What is the quality score of RAIL3?
Rumo 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 Rumo S.A (RAIL3)?
Rumo S.A reported trailing-twelve-month revenue of about R$14.2B (latest available figure, as of Aug 18, 2026).
What is the net profit margin of RAIL3?
The net profit margin of Rumo S.A is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does Rumo S.A pay a dividend?
Rumo S.A currently shows a dividend yield of about 0.73% relative to its recent price (as of Aug 18, 2026).
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