# Smartfit Escola de Ginástica e Dança (SMFT3.SA)

Canonical: https://gigainvestors.com/s/SMFT3.SA

Analysis as of: 2026-10-16T07:39:25.615Z. Financial observations: FY2017–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 24.19 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 5

- Operating margin variation: 3.02×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.10×

- FY2019: 0.06×

- FY2020: -0.28×

- FY2021: -0.20×

- FY2022: 0.09×

- FY2023: 0.25×

- FY2024: 0.23×

- FY2025: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.4%

- ROIC, second-lowest year: -3.4%

- Typical minus recent gross margin: -10.3 pp

- Typical gross margin (annual median): 31.1%

- Recent gross margin (lower of latest and 3-year median): 41.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 34.9%

- ROIC including acquisitions, ten-year median: -9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 10.7%

- FY2018: 12.4%

- FY2019: 1.6%

- FY2020: -3.6%

- FY2021: -3.4%

- FY2022: 2.3%

- FY2023: 7.1%

- FY2024: 6.4%

- FY2025: 7.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -1.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL -2.7B

- Net income, five-year total: BRL 1.4B

- Return on incremental invested capital: 78.8%

- Working capital / revenue, annual change: 0.8 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.46×

- FY2022: 8.45×

- FY2023: 0.21×

- FY2024: -1.47×

- FY2025: -0.96×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 10.7% vs 7.1%

- Per-share earnings: -1.18 to 1.07 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 93.0%

- Diluted shares, 5-year annual growth: 93.0%

- Per-share value change: BRL 2.25

- Per-share value, starting three-year median: BRL -1.18

- Per-share value, ending three-year median: BRL 1.07

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 10.7%

- ROIC, last three-year median: 7.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: BRL -1.18

- FY2018: BRL 19.13

- FY2019: BRL -16.11

- FY2020: BRL -26.86

- FY2021: BRL -1.08

- FY2022: BRL -0.15

- FY2023: BRL 1.76

- FY2024: BRL 0.74

- FY2025: BRL 1.07

### accounting: pass

- Sloan accruals: -6.8%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.28×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.45×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -7.3%

- FY2018: 5.7%

- FY2019: -11.4%

- FY2020: -5.2%

- FY2021: -5.7%

- FY2022: -5.2%

- FY2023: -1.9%

- FY2024: -5.1%

- FY2025: -6.8%

## Holders

## Price story

Up 25% since Oct 2023 · sales +29.8%

Story as of 2026-10-16T10:00:10.770Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +29.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: BRL 743M 

- FY2018: BRL 1.2B 

- FY2019: BRL 2.0B 

- FY2020: BRL 1.3B 

- FY2021: BRL 1.7B 

- FY2022: BRL 2.9B 

- FY2023: BRL 4.2B 

- FY2024: BRL 5.6B 

- FY2025: BRL 7.2B 

### Gross margin · FY2025

gross margin 42.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 28.7% 

- FY2018: 30.2% 

- FY2019: 37.0% 

- FY2021: 6.7% 

- FY2022: 31.1% 

- FY2023: 40.3% 

- FY2024: 41.4% 

- FY2025: 42.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in leisure; annual sales are BRL 7.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); FY2025: revenue 7241694000; grossProfit 3076961000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMFT3.SA: Smartfit Escola de Ginástica e Dança S.A. operates a network of Smart Fit gyms in Latin America. The company offers digital fitness services under the Queima Diária brand. It operates through owned and franchised units in Brazil, Mexico, Colombia, Chile, Peru, Argentina, Paraguay, Uruguay, Panama, Costa Rica, Dominican Republic, Ecuador, Guatemala, El Salvador and Honduras under the Smart Fit and Bio Ritmo brands. Smartfit Escola de Ginástica e Dança S.A. was founded in 1996 and is based in São Paulo, Brazil.

### Why customers stay

Margins ranged from 40.3% to 42.5% during 2023–25; it earns 6.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); FY2023: grossProfit / revenue = 40.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); FY2024: grossProfit / revenue = 41.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); FY2025: grossProfit / revenue = 42.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); 9-year return on capital observations [[2017,0.10693669316867915],[2018,0.12373482827315621],[2019,0.015683236734488223],[2020,-0.03643988953549731],[2021,-0.034384365294921844],[2022,0.02309110241236849],[2023,0.07125034818090958],[2024,0.06352637171367408],[2025,0.0731652816167544]]; median 0.06352637171367408. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); FY2023: growth capex 204248000; upkeep 1157395000; owner earnings 215071200. Growth capex / owner earnings = 0.9496762002536834.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); Dividend observations: [[2017,27313000],[2018,27313000],[2019,27313000],[2020,0],[2021,0],[2022,8116000],[2023,2730000],[2024,3407000],[2025,1255000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 13.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMFT3.SA SharesStats.PercentInsiders = 13.946 percentage points; cache date 2026-10-16.

### What the price says

The price is 2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.615Z); Closing price 24.19 BRL; reporting-to-trading FX 1; FY2025 annual sales per share 12.125118020625626; price multiple 1.9950321274276435. FY2025 cash earnings/share -1.0316885484455098. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2021-07: BRL 27.49 per share

- 2021-08: BRL 27.00 per share

- 2021-09: BRL 25.60 per share

- 2021-10: BRL 20.17 per share

- 2021-11: BRL 18.09 per share

- 2021-12: BRL 16.00 per share

- 2022-01: BRL 17.31 per share

- 2022-02: BRL 18.50 per share

- 2022-03: BRL 21.50 per share

- 2022-04: BRL 17.95 per share

- 2022-05: BRL 14.55 per share

- 2022-06: BRL 10.09 per share

- 2022-07: BRL 11.54 per share

- 2022-08: BRL 16.64 per share

- 2022-09: BRL 15.20 per share

- 2022-10: BRL 17.33 per share

- 2022-11: BRL 15.18 per share

- 2022-12: BRL 13.59 per share

- 2023-01: BRL 15.87 per share

- 2023-02: BRL 15.53 per share

- 2023-03: BRL 13.34 per share

- 2023-04: BRL 15.25 per share

- 2023-05: BRL 19.05 per share

- 2023-06: BRL 21.50 per share

- 2023-07: BRL 22.86 per share

- 2023-08: BRL 20.60 per share

- 2023-09: BRL 21.50 per share

- 2023-10: BRL 19.37 per share

- 2023-11: BRL 23.15 per share

- 2023-12: BRL 26.03 per share

- 2024-01: BRL 24.25 per share

- 2024-02: BRL 24.46 per share

- 2024-03: BRL 26.00 per share

- 2024-04: BRL 24.19 per share

- 2024-05: BRL 22.50 per share

- 2024-06: BRL 21.60 per share

- 2024-07: BRL 21.20 per share

- 2024-08: BRL 22.05 per share

- 2024-09: BRL 21.44 per share

- 2024-10: BRL 21.85 per share

- 2024-11: BRL 18.22 per share

- 2024-12: BRL 16.96 per share

- 2025-01: BRL 19.48 per share

- 2025-02: BRL 17.84 per share

- 2025-03: BRL 20.42 per share

- 2025-04: BRL 24.45 per share

- 2025-05: BRL 24.01 per share

- 2025-06: BRL 24.84 per share

- 2025-07: BRL 20.72 per share

- 2025-08: BRL 24.41 per share

- 2025-09: BRL 26.68 per share

- 2025-10: BRL 25.18 per share

- 2025-11: BRL 26.25 per share

- 2025-12: BRL 23.30 per share

- 2026-01: BRL 22.14 per share

- 2026-02: BRL 20.20 per share

- 2026-03: BRL 19.16 per share

- 2026-04: BRL 17.27 per share

- 2026-05: BRL 18.53 per share

- 2026-06: BRL 19.69 per share

- 2026-07: BRL 19.70 per share

- 2026-08: BRL 16.81 per share

- 2026-09: BRL 17.56 per share

- 2026-10: BRL 24.85 per share

## Annual estimated value (BRL per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations