SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUZ - US86959K1051 - ADR
9.6801 USD
-0.18 (-1.82%)
Taking everything into account, SUZ scores 6 out of 10 in our fundamental rating. SUZ was compared to 9 industry peers in the Paper & Forest Products industry. While SUZ has a great profitability rating, there are some minor concerns on its financial health. SUZ scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SUZ could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year SUZ was profitable.
- SUZ had a positive operating cash flow in the past year.
- In multiple years SUZ reported negative net income over the last 5 years.
- Each year in the past 5 years SUZ had a positive operating cash flow.
1.2 Ratios
- SUZ has a better Return On Assets (4.91%) than 66.67% of its industry peers.
- The Return On Equity of SUZ (18.14%) is better than 77.78% of its industry peers.
- With a decent Return On Invested Capital value of 7.05%, SUZ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- SUZ had an Average Return On Invested Capital over the past 3 years of 9.38%. This is above the industry average of 5.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 18.14% | ||
| ROIC | 7.05% |
ROA(3y)7.7%
ROA(5y)3.96%
ROE(3y)26.78%
ROE(5y)-2.15%
ROIC(3y)9.38%
ROIC(5y)9.39%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.26%, SUZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Operating Margin of SUZ (25.74%) is better than 100.00% of its industry peers.
- SUZ's Operating Margin has improved in the last couple of years.
- SUZ has a better Gross Margin (37.73%) than 100.00% of its industry peers.
- SUZ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.74% | ||
| PM (TTM) | 15.26% | ||
| GM | 37.73% |
OM growth 3Y-8.96%
OM growth 5Y26.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.3%
GM growth 5Y15.81%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SUZ is still creating some value.
- The number of shares outstanding for SUZ has been reduced compared to 1 year ago.
- Compared to 5 years ago, SUZ has less shares outstanding
- Compared to 1 year ago, SUZ has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.25, we must say that SUZ is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.25, SUZ perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- The Debt to FCF ratio of SUZ is 17.09, which is on the high side as it means it would take SUZ, 17.09 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 17.09, SUZ is in line with its industry, outperforming 55.56% of the companies in the same industry.
- SUZ has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SUZ (2.20) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 17.09 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.04
WACC6.75%
2.3 Liquidity
- A Current Ratio of 3.16 indicates that SUZ has no problem at all paying its short term obligations.
- SUZ has a Current ratio of 3.16. This is amongst the best in the industry. SUZ outperforms 100.00% of its industry peers.
- A Quick Ratio of 2.48 indicates that SUZ has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.48, SUZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 62.85% over the past year.
- SUZ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.24%.
- SUZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.75% yearly.
EPS 1Y (TTM)62.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.52%
Revenue 1Y (TTM)19.24%
Revenue growth 3Y4.99%
Revenue growth 5Y12.75%
Sales Q2Q%-0.98%
3.2 Future
- Based on estimates for the next years, SUZ will show a very strong growth in Earnings Per Share. The EPS will grow by 48.59% on average per year.
- SUZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.95% yearly.
EPS Next Y310.42%
EPS Next 2Y75.32%
EPS Next 3Y48.59%
EPS Next 5YN/A
Revenue Next Year8%
Revenue Next 2Y10.37%
Revenue Next 3Y10.81%
Revenue Next 5Y11.95%
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.58, the valuation of SUZ can be described as very reasonable.
- Based on the Price/Earnings ratio, SUZ is valued cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. SUZ is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.64, the valuation of SUZ can be described as reasonable.
- SUZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. SUZ is cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. SUZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUZ indicates a rather cheap valuation: SUZ is cheaper than 88.89% of the companies listed in the same industry.
- SUZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SUZ is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
- SUZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of SUZ may justify a higher PE ratio.
- SUZ's earnings are expected to grow with 48.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y75.32%
EPS Next 3Y48.59%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.39%, SUZ is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.37, SUZ has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SUZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- On average, the dividend of SUZ grows each year by 20.94%, which is quite nice.
- SUZ has paid a dividend for at least 10 years, which is a reliable track record.
- SUZ has decreased its dividend recently.
Dividend Growth(5Y)20.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- SUZ pays out 32.13% of its income as dividend. This is a sustainable payout ratio.
- The dividend of SUZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.13%
EPS Next 2Y75.32%
EPS Next 3Y48.59%
SUZANO SA - SPON ADR / SUZ FAQ
What is the ChartMill fundamental rating of SUZANO SA - SPON ADR (SUZ) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SUZ.
What is the valuation status for SUZ stock?
ChartMill assigns a valuation rating of 9 / 10 to SUZANO SA - SPON ADR (SUZ). This can be considered as Undervalued.
What is the profitability of SUZ stock?
SUZANO SA - SPON ADR (SUZ) has a profitability rating of 7 / 10.
What is the valuation of SUZANO SA - SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SUZANO SA - SPON ADR (SUZ) is 9.58 and the Price/Book (PB) ratio is 1.47.
What is the expected EPS growth for SUZANO SA - SPON ADR (SUZ) stock?
The Earnings per Share (EPS) of SUZANO SA - SPON ADR (SUZ) is expected to grow by 310.42% in the next year.