The historical rank and industry rank for Banco Mercantil do Brasil's ROE % or its related term are showing as below:
BSP:BMEB4'
s ROE % Range Over the Past 10 Years
Min: 2.6 Med: 16.42 Max: 39.87
Current: 39.87
During the past 13 years, Banco Mercantil do Brasil's highest ROE % was 39.87%. The lowest was 2.60%. And the median was 16.42%.
BSP:BMEB4's ROE % is ranked better than 98.82% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs BSP:BMEB4: 39.87
Banco Mercantil do Brasil (BSP:BMEB4) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE % Competitor Comparison
For the Banks - Regional subindustry, Banco Mercantil do Brasil's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Banco Mercantil do Brasil's ROE % distribution charts can be found below:
* The bar in red indicates where Banco Mercantil do Brasil's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Banco Mercantil do Brasil (BSP:BMEB4) has a ROE % of 41.48% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Banco Mercantil do Brasil and its competitors. This is 153% above median its historical median of 16.42. Over the past decade, Banco Mercantil do Brasil's ROE % has ranged from 2.60 to 39.87. According to the industry distribution chart, Banco Mercantil do Brasil ranks #18 out of 1524 companies in the Banks industry, placing it in the top 1.2%.
Is Banco Mercantil do Brasil's ROE % too high?
Banco Mercantil do Brasil's current ROE % of 41.48% is 153% above median its 10-year median of 16.42. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 39.87. The Banks industry median ROE % is 10.22. Banco Mercantil do Brasil's value of 41.48% is 305.9% above this industry median. Based on the distribution chart, Banco Mercantil do Brasil ranks #18 out of 1524 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 ROE % compare to competitors?
According to the Banks industry distribution chart, Banco Mercantil do Brasil ranks #18 out of 1524 companies for ROE %. This places Banco Mercantil do Brasil in the top 1% of its industry — outperforming the majority of peers. The industry median ROE % is 10.22. Banco Mercantil do Brasil's value of 41.48% is 305.9% above this benchmark. Historically, Banco Mercantil do Brasil's own ROE % has ranged from 2.60 to 39.87 over the past decade. While the company's 10-year median is 16.42 vs. the industry median of 10.22, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Banco Mercantil do Brasil's current ROE % of 41.48% is 305.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Banco Mercantil do Brasil and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Mercantil do Brasil's current ROE % is 41.48%, which is 153% above median its own 10-year median of 16.42. 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:BMEB4) is currently considered Significantly Overvalued. The stock's GF Value™ is R$50.97, compared to a current price of R$68.00 — trading 33.4% above its estimated fair value. The current ROE % is 41.48%, which is 153% above median its 10-year median of 16.42 and 305.9% above the Banks industry median of 10.22. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Banco Mercantil do Brasil (BSP:BMEB4), the current ROE % is 41.48% 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:BMEB4) Overvalued in 2026?
Based on GuruFocus' analysis, Banco Mercantil do Brasil stock appears to be overvalued.
The current stock price of R$68.00 is trading 33.4% above its estimated GF Value™ of R$50.97.
GuruFocus considers Banco Mercantil do Brasil to be Significantly Overvalued.
Key valuation signals for BSP:BMEB4:
ROE %: 41.48% (153% above median its 10-year median of 16.42)
GF Value™: R$50.97 vs. price of R$68.00 (33.4% above fair value)
Industry Position: 305.9% above the Banks median (#18 of 1524)
No single metric tells the full story. See the BSP:BMEB4 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
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