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Sao MartinhoBSP:SMTO3 +1.10%78 ROA % is 2.97% as of Mar. 2026, which is 47% below its 10-year median of 5.57. GuruFocus rates BSP:SMTO3 with a GF Score™ of 78/100 and a GF Value™ of R$25.49 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,612 Chemicals companies, Sao Martinho ranks better than 57.2% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sao Martinho's annualizedNet Income for the quarter that ended in Mar. 2026 was R$691 Mil.
Sao Martinho's average Total Assets over the quarter that ended in Mar. 2026 was R$23,279 Mil. Therefore, Sao Martinho's annualized ROA % for the quarter that ended in Mar. 2026 was 2.97%.
The historical rank and industry rank for Sao Martinho's ROA % or its related term are showing as below:
BSP:SMTO3'
s ROA % Range Over the Past 10 Years
Min: 2.64 Med: 5.57 Max: 9.95
Current: 3.7
During the past 13 years, Sao Martinho's highest ROA % was 9.95%. The lowest was 2.64%. And the median was 5.57%.
BSP:SMTO3's ROA % is ranked better than 57.2% of 1612
companies
in the Chemicals industry
Industry Median: 2.915
vs BSP:SMTO3: 3.70
Sao Martinho (BSP:SMTO3) 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.
Sao Martinho ROA % Related Terms
Sao Martinho ROA % Historical Data
* Premium members only.
The historical data trend for Sao Martinho's ROA % 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.
For the Specialty Chemicals subindustry, Sao Martinho'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.
Sao Martinho ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's ROA % distribution charts can be found below:
* The bar in red indicates where Sao Martinho'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.
Sao Martinho (BSP:SMTO3) has a ROA % of 2.97% 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 Sao Martinho and its competitors. This is 47% below median its historical median of 5.57. Over the past decade, Sao Martinho's ROA % has ranged from 2.64 to 9.95. According to the industry distribution chart, Sao Martinho ranks #690 out of 1612 companies in the Chemicals industry, placing it in the top 42.8%.
Is Sao Martinho's ROA % too high?
Sao Martinho's current ROA % of 2.97% is 47% below median its 10-year median of 5.57. Over the past 10 years, this metric has ranged from a low of 2.64 to a high of 9.95. The Chemicals industry median ROA % is 2.92. Sao Martinho's value of 2.97% is 1.9% above this industry median. Based on the distribution chart, Sao Martinho ranks #690 out of 1612 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sao Martinho has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sao Martinho's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sao Martinho ranks #690 out of 1612 companies for ROA %. This puts Sao Martinho in the upper half of its industry. The industry median ROA % is 2.92. Sao Martinho's value of 2.97% is 1.9% above this benchmark. Historically, Sao Martinho's own ROA % has ranged from 2.64 to 9.95 over the past decade. While the company's 10-year median is 5.57 vs. the industry median of 2.92, 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 ROA % for a Chemicals company?
The median ROA % among Chemicals companies is 2.92, based on 1,612 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. Sao Martinho's current ROA % of 2.97% is 1.9% 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 Sao Martinho and its competitors. For the Chemicals industry, the median ROA % is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sao Martinho's current ROA % is 2.97%, which is 47% below median its own 10-year median of 5.57. 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$15.58 — trading 38.9% below its estimated fair value. The current ROA % is 2.97%, which is 47% below median its 10-year median of 5.57 and 1.9% above the Chemicals industry median of 2.92. Sao Martinho's overall GF Score™ is 78/100 with 8 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 Sao Martinho (BSP:SMTO3), the current ROA % is 2.97% 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$15.58 is trading 38.9% below its estimated GF Value™ of R$25.49.
GuruFocus considers Sao Martinho to be Possible Value Trap.
Key valuation signals for BSP:SMTO3:
ROA %: 2.97% (47% below median its 10-year median of 5.57)
GF Value™: R$25.49 vs. price of R$15.58 (38.9% below fair value)
Industry Position: 1.9% above the Chemicals median (#690 of 1612)
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.
78GF Score
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