Sao Martinho SA
BOVESPA:SMTO3

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Sao Martinho SA
BOVESPA:SMTO3
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Price: 16.15 BRL 0.62% Market Closed
Market Cap: R$5.4B

P/OCF

2
Current
23%
Cheaper
vs 3-y average of 2.6

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2
=
Market Cap
R$5.7B
/
Operating Cash Flow
R$2.6B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2
=
Market Cap
R$5.7B
/
Operating Cash Flow
R$2.6B

Valuation Scenarios

Sao Martinho SA is trading below its 3-year average

If P/OCF returns to its 3-Year Average (2.6), the stock would be worth R$21.11 (31% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+186%
Average Upside
74%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 2 R$16.15
0%
3-Year Average 2.6 R$21.11
+31%
5-Year Average 3.4 R$27.13
+68%
Industry Average 2.3 R$18.15
+12%
Country Average 5.7 R$46.18
+186%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
BR
Sao Martinho SA
BOVESPA:SMTO3
5.2B BRL 2 6.8
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 324 863.9 540 752.8
CH
Nestle SA
SIX:NESN
204B CHF 12.8 22.6
US
Mondelez International Inc
NASDAQ:MDLZ
78.2B USD 17.3 31.9
FR
Danone SA
PAR:BN
42.3B EUR 11.3 23.5
ZA
Tiger Brands Ltd
JSE:TBS
47.9B ZAR 21 12.6
US
Hershey Co
NYSE:HSY
38.4B USD 16.8 43.4
CN
Muyuan Foods Co Ltd
SZSE:002714
243.7B CNY 11.3 25
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
229.4B CNY 29.6 32.6
ZA
Avi Ltd
JSE:AVI
32.7B ZAR 10.7 12.7
JP
Ajinomoto Co Inc
TSE:2802
4.9T JPY 21.8 63.2

Market Distribution

Lower than 86% of companies in Brazil
Percentile
14th
Based on 440 companies
14th percentile
2
Low
0.1 — 3
Typical Range
3 — 9.6
High
9.6 —
Distribution Statistics
Brazil
Min 0.1
30th Percentile 3
Median 5.7
70th Percentile 9.6
Max 2 583.6

Sao Martinho SA
Glance View

Market Cap
5.4B BRL
Industry
Food Products

In the sprawling landscape of Brazil's agribusiness sector, São Martinho SA stands as a testament to the power of strategic cultivation and industry foresight. Founded with deep roots in sugar cane production, the company has evolved over decades to become one of Brazil's leading sugar and ethanol producers. Their operations are a seamless blend of tradition and technology, efficiently transforming vast fields of sugarcane into valuable commodities. Leveraging Brazil’s favorable climate and the growing global demand for renewable energy, São Martinho has not only capitalized on the production of sugar—an essential food ingredient—but also embraced the burgeoning market for biofuels. Through comprehensive agricultural practices and robust industrial operations, the company ensures a steady supply of raw material that feeds its sophisticated processing plants, resulting in products that fuel both engines and economies. São Martinho's business model thrives on its vertically integrated operations, which provide an edge in managing costs and controlling the quality of its output. Its revenue streams are diversified, primarily driven by the sale of sugar and ethanol, but also supplemented by by-products like electricity generated from biomass—an innovative and environmentally friendly solution to energy needs. This diversification mitigates the risks associated with price volatility in the global sugar market and governmental policy changes in biofuel standards. Additionally, the company's commitment to sustainability and cutting-edge technology positions it favorably in the eyes of environmentally conscious investors. By continually optimizing its production processes and maintaining a keen eye on global market trends, São Martinho stays ahead in the competitive agribusiness landscape, a true hallmark of strategic resilience and adaptive growth.

SMTO3 Intrinsic Value
21.58 BRL
Undervaluation 25%
Intrinsic Value
Price R$16.15
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