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Sao MartinhoBSP:SMTO3 -3.66%79 Operating Margin % is 17.20% as of Mar. 2026, which is 20% below its 10-year median of 21.41. GuruFocus rates BSP:SMTO3 with a GF Score™ of 79/100 and a GF Value™ of R$25.49 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,578 Chemicals companies, Sao Martinho ranks better than 89.48% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Sao Martinho's Operating Income for the
three
months ended in Mar. 2026 was R$386 Mil. Sao Martinho's Revenue for the
three
months ended in Mar. 2026 was R$2,244 Mil. Therefore, Sao Martinho's Operating Margin % for the quarter that ended in Mar. 2026 was 17.20%.
Warning Sign:
Sao Martinho SA operating margin has been in a 5-year decline. The average rate of decline per year is -10%.
The historical rank and industry rank for Sao Martinho's Operating Margin % or its related term are showing as below:
BSP:SMTO3'
s Operating Margin % Range Over the Past 10 Years
Min: 15.62 Med: 21.41 Max: 34.27
Current: 18.26
BSP:SMTO3's Operating Margin % is ranked better than 89.48% of 1578
companies
in the Chemicals industry
Industry Median: 6.03
vs BSP:SMTO3: 18.26
Sao Martinho's 5-Year Average Operating Margin % Growth Rate was -10.00% per year.
Sao Martinho's Operating Income for the
three
months ended in Mar. 2026 was R$386 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was R$1,357 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Sao Martinho Operating Margin % Related Terms
Sao Martinho Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sao Martinho's Operating 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: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Sao Martinho's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sao Martinho's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sao Martinho's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 Operating Margin % of 17.20% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sao Martinho and its competitors. This is 20% below median its historical median of 21.41. Over the past decade, Sao Martinho's Operating Margin % has ranged from 15.62 to 34.27. According to the industry distribution chart, Sao Martinho ranks #166 out of 1578 companies in the Chemicals industry, placing it in the top 10.5%.
Is Sao Martinho's Operating Margin % too high?
Sao Martinho's current Operating Margin % of 17.20% is 20% below median its 10-year median of 21.41. Over the past 10 years, this metric has ranged from a low of 15.62 to a high of 34.27. The Chemicals industry median Operating Margin % is 6.03. Sao Martinho's value of 17.20% is 185.2% above this industry median. Based on the distribution chart, Sao Martinho ranks #166 out of 1578 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sao Martinho has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sao Martinho's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sao Martinho ranks #166 out of 1578 companies for Operating Margin %. This places Sao Martinho in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Sao Martinho's value of 17.20% is 185.2% above this benchmark. Historically, Sao Martinho's own Operating Margin % has ranged from 15.62 to 34.27 over the past decade. While the company's 10-year median is 21.41 vs. the industry median of 6.03, Sao Martinho has consistently been above 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 Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,578 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sao Martinho's current Operating Margin % of 17.20% is 185.2% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sao Martinho and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sao Martinho's current Operating Margin % is 17.20%, which is 20% below median its own 10-year median of 21.41. 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$15.53 — trading 39.1% below its estimated fair value. The current Operating Margin % is 17.20%, which is 20% below median its 10-year median of 21.41 and 185.2% above the Chemicals industry median of 6.03. Sao Martinho's overall GF Score™ is 79/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sao Martinho (BSP:SMTO3), the current Operating Margin % is 17.20% 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$15.53 is trading 39.1% below its estimated GF Value™ of R$25.49.
GuruFocus considers Sao Martinho to be Possible Value Trap.
Key valuation signals for BSP:SMTO3:
Operating Margin %: 17.20% (20% below median its 10-year median of 21.41)
GF Value™: R$25.49 vs. price of R$15.53 (39.1% below fair value)
Industry Position: 185.2% above the Chemicals median (#166 of 1578)
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.
79GF Score
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