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Sao MartinhoBSP:SMTO3 -1.53%83 Return-on-Tangible-Equity is 10.34% as of Mar. 2026, which is 44% below its 10-year median of 18.38. 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 1,570 Chemicals companies, Sao Martinho ranks better than 77.26% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sao Martinho's annualized net income for the quarter that ended in Mar. 2026 was R$691 Mil. Sao Martinho's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$6,684 Mil. Therefore, Sao Martinho's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.34%.
The historical rank and industry rank for Sao Martinho's Return-on-Tangible-Equity or its related term are showing as below:
BSP:SMTO3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.06 Med: 18.38 Max: 35.22
Current: 12.96
During the past 13 years, Sao Martinho's highest Return-on-Tangible-Equity was 35.22%. The lowest was 9.06%. And the median was 18.38%.
BSP:SMTO3's Return-on-Tangible-Equity is ranked better than 77.26% of 1570
companies
in the Chemicals industry
Industry Median: 5.745
vs BSP:SMTO3: 12.96
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sao Martinho Return-on-Tangible-Equity Related Terms
Sao Martinho Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sao Martinho's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Sao Martinho's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sao Martinho's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.34% mean?
Sao Martinho (BSP:SMTO3) has a Return-on-Tangible-Equity of 10.34% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sao Martinho and its competitors. This is 44% below median its historical median of 18.38. Over the past decade, Sao Martinho's Return-on-Tangible-Equity has ranged from 9.06 to 35.22. According to the industry distribution chart, Sao Martinho ranks #357 out of 1570 companies in the Chemicals industry, placing it in the top 22.7%.
Is Sao Martinho's Return-on-Tangible-Equity too high?
Sao Martinho's current Return-on-Tangible-Equity of 10.34% is 44% below median its 10-year median of 18.38. Over the past 10 years, this metric has ranged from a low of 9.06 to a high of 35.22. The Chemicals industry median Return-on-Tangible-Equity is 5.75. Sao Martinho's value of 10.34% is 80% above this industry median. Based on the distribution chart, Sao Martinho ranks #357 out of 1570 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 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sao Martinho's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sao Martinho ranks #357 out of 1570 companies for Return-on-Tangible-Equity. This places Sao Martinho in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.75. Sao Martinho's value of 10.34% is 80% above this benchmark. Historically, Sao Martinho's own Return-on-Tangible-Equity has ranged from 9.06 to 35.22 over the past decade. While the company's 10-year median is 18.38 vs. the industry median of 5.75, 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 Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.75, based on 1,570 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sao Martinho's current Return-on-Tangible-Equity of 10.34% is 80% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sao Martinho and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sao Martinho's current Return-on-Tangible-Equity is 10.34%, which is 44% below median its own 10-year median of 18.38. 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 Return-on-Tangible-Equity is 10.34%, which is 44% below median its 10-year median of 18.38 and 80% above the Chemicals industry median of 5.75. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sao Martinho (BSP:SMTO3), the current Return-on-Tangible-Equity is 10.34% 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:
Return-on-Tangible-Equity: 10.34% (44% below median its 10-year median of 18.38)
GF Value™: R$25.49 vs. price of R$16.12 (36.8% below fair value)
Industry Position: 80% above the Chemicals median (#357 of 1570)
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
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