Totvs, MRV buybacks flag deep undervaluation in Brazil
Completed and newly authorized share repurchase programs by Brazilian software firm Totvs and homebuilder MRV indicate corporate boards view their stocks as heavily discounted relative to intrinsic value.
Brazilian software firm Totvs completed a 20-million-share buyback on July 15, 2026, while homebuilder MRV authorized the repurchase of up to 6.08 million shares in June 2025. The simultaneous capital return moves from two unrelated sectors underscore a growing conviction among Brazilian management teams that their equities are trading below intrinsic value.
Totvs executed its entire authorized limit between February 11 and July 15, 2026, acquiring shares at an average of R$32.17. With the stock closing at R$28.72 on the final day of the program, the company effectively established a valuation floor above the market price. The repurchased shares sit in treasury, available for future cancellation or employee compensation.
MRV’s authorization, valid until December 12, 2026, covers roughly 8.05% of its outstanding common shares when combined with existing treasury positions. By potentially withdrawing nearly a tenth of the free float, the homebuilder can mechanically support earnings per share even if net income remains flat. The repurchased equity may be canceled, held in treasury, subsequently sold, or used to back derivative transactions.
The divergent nature of the two companies makes the parallel capital allocation strategies notable. Totvs dominates Brazil’s enterprise software market, while MRV operates in a property sector trading at a compressed price-to-earnings ratio of about 10.1x, well below its three-year average of 15.6x. Certain homebuilders are changing hands at just 5x to 6x earnings, a steep discount to the roughly 11x multiple of the broader Bovespa index.
Rather than pursuing mergers and acquisitions, both boards are deploying cash to shrink their share counts. Totvs drawing down 100% of its program demonstrates execution discipline, while MRV’s 18-month window provides a sustained bid under its stock in a high-interest-rate environment. Together, the programs suggest a cross-sector consensus that current market prices represent an unusual bargain.
