SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
NYSE:SUZ - New York Stock Exchange, Inc. - US86959K1051 - ADR - Currency: USD
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. Both the profitability and the financial health of SUZ get a neutral evaluation. Nothing too spectacular is happening here. SUZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SUZ has reported negative net income.
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 (-0.61%) which is comparable to the rest of the industry.
The Return On Equity of SUZ (-2.47%) is comparable to the rest of the industry.
SUZ's Return On Invested Capital of 8.06% 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 in line with the industry average of 7.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -2.47% | ||
| ROIC | 8.06% |
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 Operating Margin, with a value of 29.52%, 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 40.54%, SUZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SUZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.52% | ||
| PM (TTM) | N/A | ||
| GM | 40.54% |
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
SUZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
SUZ has a worse debt/assets ratio than last year.
2.2 Solvency
SUZ has an Altman-Z score of 1.30. This is a bad value and indicates that SUZ is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.30, SUZ is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of SUZ is 14.99, which is on the high side as it means it would take SUZ, 14.99 years of fcf income to pay off all of its debts.
SUZ has a Debt to FCF ratio of 14.99. This is comparable to the rest of the industry: SUZ outperforms 55.56% of its industry peers.
A Debt/Equity ratio of 2.44 is on the high side and indicates that SUZ has dependencies on debt financing.
SUZ has a worse Debt to Equity ratio (2.44) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 14.99 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.22
WACC6.62%
2.3 Liquidity
A Current Ratio of 2.61 indicates that SUZ has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.61, SUZ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
SUZ has a Quick Ratio of 1.96. This is a normal value and indicates that SUZ is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SUZ (1.96) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
SUZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -108.51%.
Looking at the last year, SUZ shows a very strong growth in Revenue. The Revenue has grown by 30.47%.
The Revenue has been growing by 12.75% on average over the past years. This is quite good.
EPS 1Y (TTM)-108.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2902.35%
Revenue 1Y (TTM)30.47%
Revenue growth 3Y4.99%
Revenue growth 5Y12.75%
Sales Q2Q%22.14%
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 54.62% on average per year.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y273.7%
EPS Next 2Y89.79%
EPS Next 3Y54.62%
EPS Next 5YN/A
Revenue Next Year18.21%
Revenue Next 2Y13.65%
Revenue Next 3Y10.2%
Revenue Next 5Y7.1%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SUZ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 5.86, which indicates a rather cheap valuation of SUZ.
Based on the Price/Forward Earnings ratio, SUZ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SUZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.86 |
4.2 Price Multiples
SUZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SUZ is cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SUZ is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 5.73 |
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's earnings are expected to grow with 54.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y89.79%
EPS Next 3Y54.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, SUZ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.32, SUZ pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.32, SUZ pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of SUZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-264.34%
EPS Next 2Y89.79%
EPS Next 3Y54.62%
9.53
+0.22 (+2.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners27.26%
Inst Owner Change9.23%
Ins Owners15.51%
Ins Owner ChangeN/A
Market Cap11.78B
Analysts81.82
Price Target13.63 (43.02%)
Short Float %0.55%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend0.24
Dividend Growth(5Y)20.94%
DP-264.34%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-278.5%
Min EPS beat(2)-569.87%
Max EPS beat(2)12.88%
EPS beat(4)2
Avg EPS beat(4)-189.65%
Min EPS beat(4)-569.87%
Max EPS beat(4)34.15%
EPS beat(8)6
Avg EPS beat(8)-80.67%
EPS beat(12)8
Avg EPS beat(12)-55.06%
EPS beat(16)12
Avg EPS beat(16)-30.5%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-6.63%
Max Revenue beat(2)6.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-6.63%
Max Revenue beat(4)6.32%
Revenue beat(8)4
Avg Revenue beat(8)-0.77%
Revenue beat(12)7
Avg Revenue beat(12)-0.18%
Revenue beat(16)9
Avg Revenue beat(16)-0.8%
PT rev (1m)-2.59%
PT rev (3m)-4.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)52.77%
EPS NY rev (1m)0%
EPS NY rev (3m)3.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.86 | ||
| P/S | 1.3 | ||
| P/FCF | 9.87 | ||
| P/OCF | 2.93 | ||
| P/B | 1.68 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)-0.11
EYN/A
EPS(NY)1.63
Fwd EY17.07%
FCF(TTM)0.97
FCFY10.13%
OCF(TTM)3.25
OCFY34.08%
SpS7.32
BVpS5.68
TBVpS3.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -2.47% | ||
| ROCE | 10.29% | ||
| ROIC | 8.06% | ||
| ROICexc | 9.12% | ||
| ROICexgc | 10.23% | ||
| OM | 29.52% | ||
| PM (TTM) | N/A | ||
| GM | 40.54% | ||
| FCFM | 13.2% |
ROA(3y)7.7%
ROA(5y)3.96%
ROE(3y)26.78%
ROE(5y)-2.15%
ROIC(3y)9.38%
ROIC(5y)9.39%
ROICexc(3y)11.06%
ROICexc(5y)11.2%
ROICexgc(3y)12.82%
ROICexgc(5y)13.35%
ROCE(3y)11.96%
ROCE(5y)11.98%
ROICexcg growth 3Y-17.29%
ROICexcg growth 5Y26.8%
ROICexc growth 3Y-14.86%
ROICexc growth 5Y30.34%
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%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 14.99 | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 158.49% | ||
| Cap/Sales | 31.19% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 90.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 1.3 |
F-Score5
WACC6.62%
ROIC/WACC1.22
Cap/Depr(3y)212.09%
Cap/Depr(5y)160.32%
Cap/Sales(3y)37.3%
Cap/Sales(5y)28.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-108.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2902.35%
EPS Next Y273.7%
EPS Next 2Y89.79%
EPS Next 3Y54.62%
EPS Next 5YN/A
Revenue 1Y (TTM)30.47%
Revenue growth 3Y4.99%
Revenue growth 5Y12.75%
Sales Q2Q%22.14%
Revenue Next Year18.21%
Revenue Next 2Y13.65%
Revenue Next 3Y10.2%
Revenue Next 5Y7.1%
EBIT growth 1Y77.04%
EBIT growth 3Y-4.42%
EBIT growth 5Y42.3%
EBIT Next Year76.21%
EBIT Next 3Y28.29%
EBIT Next 5Y18.78%
FCF growth 1Y33.72%
FCF growth 3Y-30.27%
FCF growth 5Y9.93%
OCF growth 1Y2.92%
OCF growth 3Y5.32%
OCF growth 5Y22.15%