Localiza Rent a Car SA. Stock Analysis RENT3.SA

Localiza Rent A Car SA engages in the car rental, fleet rental, and franchising business. The company is headquartered in Belo Horizonte, Minas Gerais and currently employs 23,220 full-time employees. The company went IPO on 2005-05-06. The firm divides its business into three sectors: Car Rental division, which is responsible for car rental through its own agencies; Fleet Rental division, which is engaged in rental of fleet vehicles to corporations for long-term periods, and Franchising division, which is active in the administration and granting of franchise rights to use the Company’s brand, including the transfer of knowledge necessary for the operation of the business. Through its subsidiary Prime Prestadora de Servicos SA, the Company is also involved in the intermediation in the sale of cars previously used in its rental operations. As of December 31, 2011, the Company’s network, including domestic and foreign franchisees, comprised 449 branches in 314 cities in Brazil and 47 branches in 27 cities in seven other countries of South America.