Sao MartinhoBSP:SMTO3 +1.99%85 Interest Coverage is 1.85 as of Mar. 2026, which is 7% below its 10-year median of 1.99. GuruFocus rates BSP:SMTO3 with a GF Score™ of 85/100 and a GF Value™ of R$25.50 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,231 Chemicals companies, Sao Martinho ranks worse than 87.98% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Sao Martinho's
Operating Income
for the
three
months ended in Mar. 2026 was R$386 Mil. Sao Martinho's Interest Expense for the
three
months ended in Mar. 2026 was R$-208 Mil.
Sao Martinho's interest coverage for the quarter that ended in Mar. 2026 was 1.85.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sao Martinho's Interest Coverage or its related term are showing as below:
BSP:SMTO3'
s Interest Coverage Range Over the Past 10 Years
Min: 0.97 Med: 1.99 Max: 6.02
Current: 1.7
BSP:SMTO3's Interest Coverage is ranked worse than 87.98% of 1231
companies
in the Chemicals industry
Industry Median: 10.15
vs BSP:SMTO3: 1.70
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Sao Martinho Interest Coverage Related Terms
Sao Martinho Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sao Martinho's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
BSP:SMTO3 vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Sao Martinho's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sao Martinho's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Sao Martinho (BSP:SMTO3) has a Interest Coverage of 1.85 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sao Martinho and its competitors. This is near median its historical median of 1.99. Over the past decade, Sao Martinho's Interest Coverage has ranged from 0.97 to 6.02. According to the industry distribution chart, Sao Martinho ranks #1083 out of 1231 companies in the Chemicals industry, placing it in the top 88%.
Is Sao Martinho's Interest Coverage too high?
Sao Martinho's current Interest Coverage of 1.85 is near median its 10-year median of 1.99. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 6.02. The Chemicals industry median Interest Coverage is 10.15. Sao Martinho's value of 1.85 is 81.8% below this industry median. Based on the distribution chart, Sao Martinho ranks #1083 out of 1231 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Sao Martinho has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sao Martinho's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sao Martinho ranks #1083 out of 1231 companies for Interest Coverage. This places Sao Martinho in the lower half of its industry. The industry median Interest Coverage is 10.15. Sao Martinho's value of 1.85 is 81.8% below this benchmark. Historically, Sao Martinho's own Interest Coverage has ranged from 0.97 to 6.02 over the past decade. While the company's 10-year median is 1.99 vs. the industry median of 10.15, 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 Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.15, based on 1,231 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sao Martinho's current Interest Coverage of 1.85 is 81.8% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sao Martinho and its competitors. For the Chemicals industry, the median Interest Coverage is 10.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sao Martinho's current Interest Coverage is 1.85, which is near median its own 10-year median of 1.99. 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$25.50, compared to a current price of R$16.37 — trading 35.8% below its estimated fair value. The current Interest Coverage is 1.85, which is near median its 10-year median of 1.99 and 81.8% below the Chemicals industry median of 10.15. Sao Martinho's overall GF Score™ is 85/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Sao Martinho (BSP:SMTO3), the current Interest Coverage is 1.85 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$16.37 is trading 35.8% below its estimated GF Value™ of R$25.50.
GuruFocus considers Sao Martinho to be Possible Value Trap.
Key valuation signals for BSP:SMTO3:
Interest Coverage: 1.85 (near median its 10-year median of 1.99)
GF Value™: R$25.50 vs. price of R$16.37 (35.8% below fair value)
Industry Position: 81.8% below the Chemicals median (#1083 of 1231)
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.
85GF Score
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