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Sao MartinhoBSP:SMTO3 -1.53%83 ROE % is 9.43% as of Mar. 2026, which is 42% below its 10-year median of 16.39. 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 1,584 Chemicals companies, Sao Martinho ranks better than 78.35% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sao Martinho's annualized net income for the quarter that ended in Mar. 2026 was R$691 Mil. Sao Martinho's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was R$7,331 Mil. Therefore, Sao Martinho's annualized ROE % for the quarter that ended in Mar. 2026 was 9.43%.
The historical rank and industry rank for Sao Martinho's ROE % or its related term are showing as below:
BSP:SMTO3'
s ROE % Range Over the Past 10 Years
Min: 8.21 Med: 16.39 Max: 31.83
Current: 11.85
During the past 13 years, Sao Martinho's highest ROE % was 31.83%. The lowest was 8.21%. And the median was 16.39%.
BSP:SMTO3's ROE % is ranked better than 78.35% of 1584
companies
in the Chemicals industry
Industry Median: 5.24
vs BSP:SMTO3: 11.85
Sao Martinho (BSP:SMTO3) 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.
Sao Martinho ROE % Related Terms
Sao Martinho ROE % Historical Data
* Premium members only.
The historical data trend for Sao Martinho's ROE % 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 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.
Sao Martinho ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's ROE % distribution charts can be found below:
* The bar in red indicates where Sao Martinho'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.
Sao Martinho (BSP:SMTO3) has a ROE % of 9.43% 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 Sao Martinho and its competitors. This is 42% below median its historical median of 16.39. Over the past decade, Sao Martinho's ROE % has ranged from 8.21 to 31.83. According to the industry distribution chart, Sao Martinho ranks #343 out of 1584 companies in the Chemicals industry, placing it in the top 21.7%.
Is Sao Martinho's ROE % too high?
Sao Martinho's current ROE % of 9.43% is 42% below median its 10-year median of 16.39. Over the past 10 years, this metric has ranged from a low of 8.21 to a high of 31.83. The Chemicals industry median ROE % is 5.24. Sao Martinho's value of 9.43% is 80% above this industry median. Based on the distribution chart, Sao Martinho ranks #343 out of 1584 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 ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sao Martinho ranks #343 out of 1584 companies for ROE %. This places Sao Martinho in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 5.24. Sao Martinho's value of 9.43% is 80% above this benchmark. Historically, Sao Martinho's own ROE % has ranged from 8.21 to 31.83 over the past decade. While the company's 10-year median is 16.39 vs. the industry median of 5.24, 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 ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.24, based on 1,584 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. Sao Martinho's current ROE % of 9.43% 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 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 Sao Martinho and its competitors. For the Chemicals industry, the median ROE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sao Martinho's current ROE % is 9.43%, which is 42% below median its own 10-year median of 16.39. 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 ROE % is 9.43%, which is 42% below median its 10-year median of 16.39 and 80% above the Chemicals industry median of 5.24. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Sao Martinho (BSP:SMTO3), the current ROE % is 9.43% 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:
ROE %: 9.43% (42% below median its 10-year median of 16.39)
GF Value™: R$25.49 vs. price of R$16.12 (36.8% below fair value)
Industry Position: 80% above the Chemicals median (#343 of 1584)
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
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