SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUZ - US86959K1051 - ADR
9.85 USD
-0.01 (-0.1%)
9.85 USD
0 (0%)
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 scores excellent on profitability, 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.
- In multiple years SUZ reported negative net income over the last 5 years.
- SUZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SUZ (4.91%) is better than 66.67% of its industry peers.
- The Return On Equity of SUZ (18.14%) is better than 77.78% of its industry peers.
- SUZ has a Return On Invested Capital of 7.05%. This is in the better half of the industry: SUZ outperforms 77.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SUZ 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's Profit Margin of 15.26% is amongst the best of the industry. SUZ outperforms 100.00% of its industry peers.
- SUZ has a better Operating Margin (25.74%) than 100.00% of its industry peers.
- SUZ's Operating Margin has improved in the last couple of years.
- The Gross Margin of SUZ (37.73%) is better 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
- 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
- The number of shares outstanding for SUZ has been reduced compared to 5 years ago.
- The debt/assets ratio for SUZ is higher compared to a year ago.
2.2 Solvency
- SUZ has an Altman-Z score of 1.25. This is a bad value and indicates that SUZ is not financially healthy and even has some risk of bankruptcy.
- SUZ has a Altman-Z score (1.25) which is comparable to the rest of the industry.
- 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.
- SUZ's Debt to FCF ratio of 17.09 is in line compared to the rest of the industry. SUZ outperforms 55.56% of its industry peers.
- 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 | 1.25 |
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's Current ratio of 3.16 is amongst the best of 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.
- 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.
- The Revenue has grown by 19.24% in the past year. This is quite good.
- Measured over the past years, SUZ shows a quite strong growth in Revenue. The Revenue has been growing by 12.75% on average per year.
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
- The Earnings Per Share is expected to grow by 48.59% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 11.95% on average over the next years. This is quite good.
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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.75, 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/Earnings ratio.
- SUZ is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.79, which indicates a very decent valuation of SUZ.
- 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.
- SUZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SUZ is valued cheaply inside the industry as 88.89% 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 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.24 | ||
| 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.
- SUZ has a very decent profitability rating, which 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
- SUZ has a yearly dividend return of 0.39%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.37, 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 1.81.
| 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.
- SUZ's earnings are growing more than its dividend. This makes the dividend growth 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 9.75 and the Price/Book (PB) ratio is 1.5.
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.