SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUZ - US86959K1051 - ADR
9.89 USD
+0.06 (+0.61%)
9.92 USD
+0.03 (+0.3%)
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. SUZ has an excellent profitability rating, but 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. These ratings would make SUZ suitable for value investing!
1. Profitability
1.1 Basic Checks
- SUZ had positive earnings in the past year.
- In the past year SUZ had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: SUZ reported negative net income in multiple years.
- In the past 5 years SUZ always reported a positive cash flow from operatings.
1.2 Ratios
- SUZ has a Return On Assets of 4.91%. This is in the better half of the industry: SUZ outperforms 66.67% of its industry peers.
- SUZ's Return On Equity of 18.14% is fine compared to the rest of the industry. SUZ outperforms 77.78% of its industry peers.
- SUZ's Return On Invested Capital of 7.05% is fine compared to the rest of the industry. SUZ outperforms 77.78% of its industry peers.
- 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
- SUZ has a Profit Margin of 15.26%. This is amongst the best in the industry. SUZ outperforms 100.00% of its industry peers.
- Looking at the Operating Margin, with a value of 25.74%, 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 grown nicely.
- With an excellent Gross Margin value of 37.73%, SUZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SUZ is creating some value.
- Compared to 1 year ago, SUZ has less shares outstanding
- SUZ has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for SUZ is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.24, we must say that SUZ is in the distress zone and has some risk of bankruptcy.
- SUZ's Altman-Z score of 1.24 is in line compared to the rest of the industry. SUZ outperforms 44.44% of its industry peers.
- SUZ has a debt to FCF ratio of 17.09. This is a negative value and a sign of low solvency as SUZ would need 17.09 years to pay back of all of its debts.
- The Debt to FCF ratio of SUZ (17.09) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.20 is on the high side and indicates that SUZ has dependencies on debt financing.
- SUZ's Debt to Equity ratio of 2.20 is on the low side compared to the rest of the industry. SUZ is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 17.09 | ||
| Altman-Z | 1.24 |
ROIC/WACC1.06
WACC6.63%
2.3 Liquidity
- SUZ has a Current Ratio of 3.16. This indicates that SUZ is financially healthy and has no problem in meeting its short term obligations.
- SUZ's Current ratio of 3.16 is amongst the best of the industry. SUZ outperforms 100.00% of its industry peers.
- SUZ has a Quick Ratio of 2.48. This indicates that SUZ is financially healthy and has no problem in meeting its short term obligations.
- SUZ has a better Quick ratio (2.48) than 100.00% of its industry peers.
| 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.
- Looking at the last year, SUZ shows a quite strong growth in Revenue. The Revenue has grown by 19.24% in the last year.
- 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
- SUZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.35% yearly.
- The Revenue is expected to grow by 11.95% on average over the next years. This is quite good.
EPS Next Y325.32%
EPS Next 2Y75.48%
EPS Next 3Y47.35%
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
- The Price/Earnings ratio is 9.51, which indicates a very decent valuation of SUZ.
- Compared to the rest of the industry, the Price/Earnings ratio of SUZ indicates a rather cheap valuation: SUZ is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of SUZ to the average of the S&P500 Index (28.60), we can say SUZ is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.55, the valuation of SUZ can be described as reasonable.
- Based on the Price/Forward Earnings ratio, SUZ is valued cheaper than 100.00% of the companies in the same industry.
- SUZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUZ indicates a somewhat cheap valuation: SUZ is cheaper than 77.78% of the companies listed in the same industry.
- 77.78% of the companies in the same industry are more expensive than SUZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.98 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SUZ has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SUZ's earnings are expected to grow with 47.35% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y75.48%
EPS Next 3Y47.35%
5. Dividend
5.1 Amount
- SUZ has a yearly dividend return of 0.39%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.45, SUZ has a dividend in line with its industry peers.
- With a Dividend Yield of 0.39, SUZ pays less dividend than the S&P500 average, which is at 1.82.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of SUZ decreased recently.
Dividend Growth(5Y)20.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 32.13% of the earnings are spent on dividend by SUZ. This is a low number and sustainable payout ratio.
- The dividend of SUZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.13%
EPS Next 2Y75.48%
EPS Next 3Y47.35%
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 8 / 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 9.51 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 325.32% in the next year.