Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Sao MartinhoBSP:SMTO3 -1.53%83 Gross Margin % is 23.25% as of Mar. 2026, which is 18% below its 10-year median of 28.49. GuruFocus rates BSP:SMTO3 with a GF Score™ of 83/100 and a GF Value™ of R$25.49 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,558 Chemicals companies, Sao Martinho ranks better than 57.06% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sao Martinho had a gross margin of 23.25% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sao Martinho Gross Margin % Related Terms
Sao Martinho Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sao Martinho's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:SMTO3 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Sao Martinho's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sao Martinho Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sao Martinho's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sao Martinho (BSP:SMTO3) has a Gross Margin % of 23.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sao Martinho and its competitors. This is 18% below median its historical median of 28.49. Over the past decade, Sao Martinho's Gross Margin % has ranged from 24.31 to 42.31. According to the industry distribution chart, Sao Martinho ranks #669 out of 1558 companies in the Chemicals industry, placing it in the top 42.9%.
Is Sao Martinho's Gross Margin % too high?
Sao Martinho's current Gross Margin % of 23.25% is 18% below median its 10-year median of 28.49. Over the past 10 years, this metric has ranged from a low of 24.31 to a high of 42.31. The Chemicals industry median Gross Margin % is 23.47. Sao Martinho's value of 23.25% is 0.9% below this industry median. Based on the distribution chart, Sao Martinho ranks #669 out of 1558 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sao Martinho has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sao Martinho's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sao Martinho ranks #669 out of 1558 companies for Gross Margin %. This puts Sao Martinho in the upper half of its industry. The industry median Gross Margin % is 23.47. Sao Martinho's value of 23.25% is 0.9% below this benchmark. Historically, Sao Martinho's own Gross Margin % has ranged from 24.31 to 42.31 over the past decade. While the company's 10-year median is 28.49 vs. the industry median of 23.47, Sao Martinho has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,558 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sao Martinho's current Gross Margin % of 23.25% is 0.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sao Martinho and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sao Martinho's current Gross Margin % is 23.25%, which is 18% below median its own 10-year median of 28.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sao Martinho stock overvalued right now?
Based on GuruFocus' analysis, Sao Martinho (BSP:SMTO3) is currently considered Possible Value Trap. The stock's GF Value™ is R$25.49, compared to a current price of R$16.12 — trading 36.8% below its estimated fair value. The current Gross Margin % is 23.25%, which is 18% below median its 10-year median of 28.49 and 0.9% below the Chemicals industry median of 23.47. Sao Martinho's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sao Martinho (BSP:SMTO3), the current Gross Margin % is 23.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sao Martinho (BSP:SMTO3) Overvalued in 2026?
Based on GuruFocus' analysis, Sao Martinho stock appears to be undervalued.
The current stock price of R$16.12 is trading 36.8% below its estimated GF Value™ of R$25.49.
GuruFocus considers Sao Martinho to be Possible Value Trap.
Key valuation signals for BSP:SMTO3:
Gross Margin %: 23.25% (18% below median its 10-year median of 28.49)
GF Value™: R$25.49 vs. price of R$16.12 (36.8% below fair value)
Industry Position: 0.9% below the Chemicals median (#669 of 1558)
No single metric tells the full story. See the BSP:SMTO3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sao Martinho SA operates the following segments: sugar, ethanol, electricity, real estate ventures, Yeast, and other products. Sales of sugar and ethanol, both of which the company produces with sugar cane, comprise the vast majority of the company's revenue. Sao Martinho produces sugar and ethanol in its four Brazilian mills. The company derives its sugar cane mostly from its own plantations, agricultural partnerships, shareholders, and related companies. Sao Martinho exports most of its sugar, and it sells most of its ethanol domestically.
83GF Score
Get the complete analysis for BSP:SMTO3
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:SMTO3 has been successfully added to your 
