SAO MARTINHOON EJ NM

São Martinho S.A. produces and sells sugar, ethanol, and sugarcane byproducts in Brazil. It operates through multiple segments, including Sugar, Ethanol, Electric Power, Real Estate Business, Yeast, and Other Products. The company offers various types of sugar, ethanol, and industrial products. It also generates electricity from sugarcane bagasse and provides yeast and fusel oil. Additionally, São Martinho S.A. cultivates sugarcane, develops real estate, and provides storage services. Founded in 1914, it is based in São Paulo, Brazil, and is a subsidiary of LJN Participações S.A.

Overview

Sector

Chemicals

Target Price

59.5 BRL

Current Price

16.7 BRL

Potential

256%

Strengths

With an appreciation Potential of 254.08%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (9.98) is lower than the sector mean (34.88).
Price to book ratio (0.83) is lower than the sector mean (6.31).
EV/EBITDA (4.81) is lower than the sector mean (18.32).
EV/EBIT (10.08) is lower than the sector mean.
Strong EBITDA Margin of 36.97%.

Weaknesses

The company has high debt. Net Debt to EBITDA Ratio (2.72) is higher than the sector mean.
The Price to Free Cash Flow ratio (100.00) is significantly higher than the sector mean.

Key Financial Data

Indicator	Value
PER	9.9
EV/EBITDA	4.8
Price/Free Cash Flow'	100.0
ROIC	18.2%
Net Debt/EBITDA	2.7