SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
NYSE:SUZ - New York Stock Exchange, Inc. - US86959K1051 - ADR
We assign a fundamental rating of 5 out of 10 to SUZ. SUZ was compared to 9 industry peers in the Paper & Forest Products industry. SUZ scores excellent on profitability, but there are some minor concerns on its financial health. SUZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SUZ had positive earnings in the past year.
SUZ had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SUZ reported negative net income in multiple years.
Each year in the past 5 years SUZ had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.73%, SUZ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
With a decent Return On Equity value of 10.07%, SUZ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
SUZ's Return On Invested Capital of 7.89% is fine compared to the rest of the industry. SUZ outperforms 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SUZ is above the industry average of 6.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 10.07% | ||
| ROIC | 7.89% |
ROA(3y)11.54%
ROA(5y)4.24%
ROE(3y)53.15%
ROE(5y)-0.9%
ROIC(3y)10.96%
ROIC(5y)8.41%
1.3 Margins
SUZ has a Profit Margin of 9.58%. This is amongst the best in the industry. SUZ outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of SUZ has grown nicely.
Looking at the Operating Margin, with a value of 30.92%, SUZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SUZ has declined.
The Gross Margin of SUZ (41.70%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of SUZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.92% | ||
| PM (TTM) | 9.58% | ||
| GM | 41.7% |
OM growth 3Y0.11%
OM growth 5Y-7.01%
PM growth 3YN/A
PM growth 5Y71.77%
GM growth 3Y-0.99%
GM growth 5Y-5.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SUZ is destroying value.
The number of shares outstanding for SUZ has been reduced compared to 1 year ago.
SUZ has more shares outstanding than it did 5 years ago.
SUZ has a better debt/assets ratio than last year.
2.2 Solvency
SUZ has an Altman-Z score of 1.35. This is a bad value and indicates that SUZ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.35, SUZ is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
The Debt to FCF ratio of SUZ is 64.05, which is on the high side as it means it would take SUZ, 64.05 years of fcf income to pay off all of its debts.
SUZ's Debt to FCF ratio of 64.05 is in line compared to the rest of the industry. SUZ outperforms 55.56% of its industry peers.
A Debt/Equity ratio of 2.07 is on the high side and indicates that SUZ has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.07, SUZ is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 64.05 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.71
WACC11.06%
2.3 Liquidity
SUZ has a Current Ratio of 2.17. This indicates that SUZ is financially healthy and has no problem in meeting its short term obligations.
SUZ has a Current ratio of 2.17. This is in the better half of the industry: SUZ outperforms 66.67% of its industry peers.
SUZ has a Quick Ratio of 1.70. This is a normal value and indicates that SUZ is financially healthy and should not expect problems in meeting its short term obligations.
SUZ's Quick ratio of 1.70 is amongst the best of the industry. SUZ outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The earnings per share for SUZ have decreased strongly by -74.58% in the last year.
SUZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.26% yearly.
Looking at the last year, SUZ shows a decrease in Revenue. The Revenue has decreased by -0.36% in the last year.
SUZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.23% yearly.
EPS 1Y (TTM)-74.58%
EPS 3YN/A
EPS 5Y106.26%
EPS Q2Q%550.88%
Revenue 1Y (TTM)-0.36%
Revenue growth 3Y9.28%
Revenue growth 5Y24.23%
Sales Q2Q%37.17%
3.2 Future
Based on estimates for the next years, SUZ will show a decrease in Earnings Per Share. The EPS will decrease by -9.20% on average per year.
The Revenue is expected to grow by 8.26% on average over the next years. This is quite good.
EPS Next Y-50.33%
EPS Next 2Y-18.03%
EPS Next 3Y-9.2%
EPS Next 5YN/A
Revenue Next Year13.25%
Revenue Next 2Y13.09%
Revenue Next 3Y12.26%
Revenue Next 5Y8.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SUZ is valuated rather expensively with a Price/Earnings ratio of 18.91.
Based on the Price/Earnings ratio, SUZ is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SUZ to the average of the S&P500 Index (28.29), we can say SUZ is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 8.59, the valuation of SUZ can be described as reasonable.
100.00% of the companies in the same industry are more expensive than SUZ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SUZ to the average of the S&P500 Index (24.44), we can say SUZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUZ is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SUZ indicates a somewhat cheap valuation: SUZ is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.94 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
SUZ has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SUZ's earnings are expected to decrease with -9.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-18.03%
EPS Next 3Y-9.2%
5. Dividend
5.1 Amount
SUZ has a Yearly Dividend Yield of 1.09%.
SUZ's Dividend Yield is a higher than the industry average which is at 2.04.
Compared to an average S&P500 Dividend Yield of 2.28, SUZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of SUZ decreases each year by -5.08%.
SUZ has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SUZ pays out 36.11% of its income as dividend. This is a sustainable payout ratio.
SUZ's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP36.11%
EPS Next 2Y-18.03%
EPS Next 3Y-9.2%
SUZANO SA - SPON ADR
NYSE:SUZ (1/21/2025, 8:04:00 PM)
After market: 10.4 0 (0%)10.4
+0.09 (+0.87%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners28.82%
Inst Owner Change-0.83%
Ins Owners15.51%
Ins Owner ChangeN/A
Market Cap12.89B
Analysts81.82
Price Target12.84 (23.46%)
Short Float %0.53%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.15
Dividend Growth(5Y)-5.08%
DP36.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-100.8%
Min EPS beat(2)-235.75%
Max EPS beat(2)34.15%
EPS beat(4)2
Avg EPS beat(4)-50.8%
Min EPS beat(4)-235.75%
Max EPS beat(4)34.49%
EPS beat(8)5
Avg EPS beat(8)-14.26%
EPS beat(12)8
Avg EPS beat(12)-9.21%
EPS beat(16)12
Avg EPS beat(16)17.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)0.91%
Revenue beat(4)2
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-7.68%
Max Revenue beat(4)2.52%
Revenue beat(8)4
Avg Revenue beat(8)-1.26%
Revenue beat(12)7
Avg Revenue beat(12)-0.47%
Revenue beat(16)9
Avg Revenue beat(16)-0.51%
PT rev (1m)5.09%
PT rev (3m)0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-64.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 8.59 | ||
| P/S | 1.79 | ||
| P/FCF | 52.94 | ||
| P/OCF | 4.11 | ||
| P/B | 1.88 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)0.55
EY5.29%
EPS(NY)1.21
Fwd EY11.64%
FCF(TTM)0.2
FCFY1.89%
OCF(TTM)2.53
OCFY24.31%
SpS5.81
BVpS5.53
TBVpS3.64
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 10.07% | ||
| ROCE | 9.86% | ||
| ROIC | 7.89% | ||
| ROICexc | 9.02% | ||
| ROICexgc | 10.23% | ||
| OM | 30.92% | ||
| PM (TTM) | 9.58% | ||
| GM | 41.7% | ||
| FCFM | 3.38% |
ROA(3y)11.54%
ROA(5y)4.24%
ROE(3y)53.15%
ROE(5y)-0.9%
ROIC(3y)10.96%
ROIC(5y)8.41%
ROICexc(3y)13.28%
ROICexc(5y)10.01%
ROICexgc(3y)15.88%
ROICexgc(5y)12.1%
ROCE(3y)13.69%
ROCE(5y)10.51%
ROICexcg growth 3Y-1.48%
ROICexcg growth 5Y-13.35%
ROICexc growth 3Y0.96%
ROICexc growth 5Y-15.61%
OM growth 3Y0.11%
OM growth 5Y-7.01%
PM growth 3YN/A
PM growth 5Y71.77%
GM growth 3Y-0.99%
GM growth 5Y-5.31%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 64.05 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 213.24% | ||
| Cap/Sales | 40.12% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 87.47% | ||
| Profit Quality | 35.28% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 1.35 |
F-Score5
WACC11.06%
ROIC/WACC0.71
Cap/Depr(3y)182.07%
Cap/Depr(5y)136.74%
Cap/Sales(3y)30.75%
Cap/Sales(5y)25.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74.58%
EPS 3YN/A
EPS 5Y106.26%
EPS Q2Q%550.88%
EPS Next Y-50.33%
EPS Next 2Y-18.03%
EPS Next 3Y-9.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.36%
Revenue growth 3Y9.28%
Revenue growth 5Y24.23%
Sales Q2Q%37.17%
Revenue Next Year13.25%
Revenue Next 2Y13.09%
Revenue Next 3Y12.26%
Revenue Next 5Y8.26%
EBIT growth 1Y-4%
EBIT growth 3Y9.4%
EBIT growth 5Y15.52%
EBIT Next Year95.87%
EBIT Next 3Y33.93%
EBIT Next 5Y21.69%
FCF growth 1Y-79.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.63%
OCF growth 3Y9.68%
OCF growth 5Y27.35%