ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Banco Mercantil do Brasil's annualizedNet Income for the quarter that ended in Mar. 2026 was R$1,094 Mil.
Banco Mercantil do Brasil's average Total Assets over the quarter that ended in Mar. 2026 was R$36,454 Mil. Therefore, Banco Mercantil do Brasil's annualized ROA % for the quarter that ended in Mar. 2026 was 3.00%.
The historical rank and industry rank for Banco Mercantil do Brasil's ROA % or its related term are showing as below:
BSP:BMEB3'
s ROA % Range Over the Past 10 Years
Min: 0.16 Med: 1.47 Max: 2.84
Current: 2.84
During the past 13 years, Banco Mercantil do Brasil's highest ROA % was 2.84%. The lowest was 0.16%. And the median was 1.47%.
BSP:BMEB3's ROA % is ranked better than 94.24% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs BSP:BMEB3: 2.84
Banco Mercantil do Brasil (BSP:BMEB3) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
Banco Mercantil do Brasil ROA % Competitor Comparison
For the Banks - Regional subindustry, Banco Mercantil do Brasil's ROA %, along with its competitors' market caps and ROA % 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.
Banco Mercantil do Brasil ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Banco Mercantil do Brasil's ROA % distribution charts can be found below:
* The bar in red indicates where Banco Mercantil do Brasil's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Banco Mercantil do Brasil (BSP:BMEB3) has a ROA % of 3.00% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Banco Mercantil do Brasil and its competitors. This is 104% above median its historical median of 1.47. Over the past decade, Banco Mercantil do Brasil's ROA % has ranged from 0.16 to 2.84. According to the industry distribution chart, Banco Mercantil do Brasil ranks #88 out of 1529 companies in the Banks industry, placing it in the top 5.8%.
Is Banco Mercantil do Brasil's ROA % too high?
Banco Mercantil do Brasil's current ROA % of 3.00% is 104% above median its 10-year median of 1.47. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 2.84. The Banks industry median ROA % is 0.98. Banco Mercantil do Brasil's value of 3.00% is 206.1% above this industry median. Based on the distribution chart, Banco Mercantil do Brasil ranks #88 out of 1529 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Banco Mercantil do Brasil has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco Mercantil do Brasil's ROA % compare to competitors?
According to the Banks industry distribution chart, Banco Mercantil do Brasil ranks #88 out of 1529 companies for ROA %. This places Banco Mercantil do Brasil in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. Banco Mercantil do Brasil's value of 3.00% is 206.1% above this benchmark. Historically, Banco Mercantil do Brasil's own ROA % has ranged from 0.16 to 2.84 over the past decade. While the company's 10-year median is 1.47 vs. the industry median of 0.98, Banco Mercantil do Brasil 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 ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Banco Mercantil do Brasil's current ROA % of 3.00% is 206.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Banco Mercantil do Brasil and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Mercantil do Brasil's current ROA % is 3.00%, which is 104% above median its own 10-year median of 1.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Mercantil do Brasil stock overvalued right now?
Based on GuruFocus' analysis, Banco Mercantil do Brasil (BSP:BMEB3) is currently considered Significantly Overvalued. The stock's GF Value™ is R$39.73, compared to a current price of R$53.00 — trading 33.4% above its estimated fair value. The current ROA % is 3.00%, which is 104% above median its 10-year median of 1.47 and 206.1% above the Banks industry median of 0.98. Banco Mercantil do Brasil's overall GF Score™ is 53/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Banco Mercantil do Brasil (BSP:BMEB3), the current ROA % is 3.00% 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 Banco Mercantil do Brasil (BSP:BMEB3) Overvalued in 2026?
Based on GuruFocus' analysis, Banco Mercantil do Brasil stock appears to be overvalued.
The current stock price of R$53.00 is trading 33.4% above its estimated GF Value™ of R$39.73.
GuruFocus considers Banco Mercantil do Brasil to be Significantly Overvalued.
Key valuation signals for BSP:BMEB3:
ROA %: 3.00% (104% above median its 10-year median of 1.47)
GF Value™: R$39.73 vs. price of R$53.00 (33.4% above fair value)
Industry Position: 206.1% above the Banks median (#88 of 1529)
No single metric tells the full story. See the BSP:BMEB3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Banco Mercantil do Brasil SA offers commercial banking services. It offers personal and corporate credit cards, lease financing, business financing services, Internet banking, and other financial services. The company offers checking and savings accounts, and time deposits and funds; payroll-deductible loans, personal loans, overdraft facilities, credit cards, and vehicle financing services; private pension, insurance, and capitalization products and services; and collection, payment of taxes and fees to individuals.
53GF Score
Get the complete analysis for BSP:BMEB3
ROA % 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:BMEB3 has been successfully added to your 
