SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUZ - US86959K1051 - ADR
9.79 USD
-0.06 (-0.61%)
9.79 USD
0 (0%)
Overall SUZ gets a fundamental rating of 6 out of 10. We evaluated SUZ against 9 industry peers in the Paper & Forest Products industry. While SUZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SUZ may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make SUZ a good candidate 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's Return On Assets of 4.91% is fine compared to the rest of the industry. SUZ outperforms 66.67% of its industry peers.
- SUZ has a better Return On Equity (18.14%) 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.
- The Operating Margin of SUZ (25.74%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of SUZ has grown nicely.
- 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
- The debt/assets ratio for SUZ is higher compared to a year ago.
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.
- SUZ has a Altman-Z score (1.25) which is in line with its industry peers.
- 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.
- SUZ has a Debt to FCF ratio (17.09) which is in line with 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 has a worse Debt to Equity ratio (2.20) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 17.09 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.07
WACC6.61%
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 better Current ratio (3.16) than 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.
- Looking at the Quick ratio, with a value of 2.48, SUZ belongs to the top 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.
- Looking at the last year, SUZ shows a quite strong growth in Revenue. The Revenue has grown by 19.24% in the last year.
- The Revenue has been growing by 12.75% on average over the past years. This is quite good.
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 47.35% on average over the next years. This is a very strong growth
- 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 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
- 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 9.60, the valuation of SUZ can be described as reasonable.
- SUZ's Price/Earnings ratio is rather cheap when compared to the industry. SUZ is cheaper than 100.00% of the companies in the same industry.
- SUZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- SUZ is valuated reasonably with a Price/Forward Earnings ratio of 8.65.
- 100.00% of the companies in the same industry are more expensive than SUZ, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SUZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.65 |
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.
- 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 | 11.11 | ||
| EV/EBITDA | 5.66 |
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.
- The decent profitability rating of SUZ 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.
- SUZ's Dividend Yield is comparable with the industry average which is at 1.45.
- 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
- The dividend of SUZ is nicely growing with an annual growth rate of 20.94%!
- SUZ has paid a dividend for at least 10 years, which is 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 2Y75.48%
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 9.6 and the Price/Book (PB) ratio is 1.48.
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.