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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Sao Martinho's Sloan Ratio for the quarter that ended in Mar. 2026 was 7.80%.
As of Mar. 2026, Sao Martinho has a Sloan Ratio of 7.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Sao Martinho (BSP:SMTO3) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Sao Martinho has a Sloan Ratio of 7.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Sao Martinho Sloan Ratio % Related Terms
Sao Martinho Sloan Ratio % Historical Data
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The historical data trend for Sao Martinho's Sloan Ratio % 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: Sloan Ratio % Comparison
For the Specialty Chemicals subindustry, Sao Martinho's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sao Martinho's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sao Martinho's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Sao Martinho's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
Sao Martinho's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 62.829 (Jun. 2025 ) + 176.416 (Sep. 2025 ) + 424.081 (Dec. 2025 ) + 172.851 (Mar. 2026 ) = R$836 Mil.
Sao Martinho's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 584.725 (Jun. 2025 ) + 197.82 (Sep. 2025 ) + 336.3 (Dec. 2025 ) + 2106.034 (Mar. 2026 ) = R$3,225 Mil.
Sao Martinho's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -791.4 (Jun. 2025 ) + -820.774 (Sep. 2025 ) + -787.42 (Dec. 2025 ) + -1816.032 (Mar. 2026 ) = R$-4,216 Mil.
* 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.
Sao Martinho (BSP:SMTO3) has a Sloan Ratio % of 7.80% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sao Martinho and its competitors.
Is Sao Martinho's Sloan Ratio % too high?
Sao Martinho's current Sloan Ratio % is 7.80%. 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 Sloan Ratio % compare to LIN and SHW?
Sao Martinho's Sloan Ratio % of 7.80% can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Chemicals company?
A good Sloan Ratio % depends on the Chemicals industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sao Martinho and its competitors. Sao Martinho's current Sloan Ratio % is 7.80%. 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$15.71 — trading 38.4% below its estimated fair value. The current Sloan Ratio % is 7.80%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Sao Martinho (BSP:SMTO3), the current Sloan Ratio % is 7.80% 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$15.71 is trading 38.4% below its estimated GF Value™ of R$25.49.
GuruFocus considers Sao Martinho to be Possible Value Trap.
Key valuation signals for BSP:SMTO3:
Sloan Ratio %: 7.80%
GF Value™: R$25.49 vs. price of R$15.71 (38.4% below fair value)
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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