Risk factor
Fair trading liquidity
Profitability factor
Undervalued vs peers
About
São Martinho S.A. is a Brazilian enterprise, operating through its subsidiaries, primarily engaged in the production and commercialization of sugar, ethanol, and a wide array of sugarcane-derived products. Its multifaceted business model encompasses segments such as Sugar, Ethanol, Electric Power, Real Estate, Yeast, and other offerings. The company provides various forms of raw sugar, alongside a diverse ethanol portfolio: hydrated ethanol for vehicle consumption, anhydrous ethanol as a gasoline additive, and industrial ethanol essential for paint, cosmetic, and alcoholic beverage production. Beyond these staples, São Martinho generates electricity by harnessing sugarcane bagasse and produces valuable byproducts like yeast, utilized in animal feed, and fusel oil, a solvent and source of pure amyl ethanol. Complementing its industrial operations, the company cultivates sugarcane, manages real estate development (including rental and sales), participates in the import and export of goods, develops land via agricultural leases and partnerships, undertakes real estate and mining exploitation, and offers general storage services. Founded in São Paulo, Brazil, in 1914, São Martinho S.A. is a subsidiary of LJN Participações S.A.
Company Valuation
Considering past and projected metrics, the stock is 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, underpriced on P/FCF.
Target Price
The average target price of SMTO3.SA is 21 and suggests 31.4% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in