SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUZ - US86959K1051 - ADR
9.855 USD
+0.07 (+0.66%)
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. While SUZ belongs to the best of the industry regarding profitability, 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. With these ratings, SUZ could be worth investigating further 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.
- 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.
- SUZ has a better Return On Equity (18.14%) than 77.78% of its industry peers.
- With a decent Return On Invested Capital value of 7.05%, SUZ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 15.26%, SUZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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 Gross Margin of 37.73%. This is amongst the best in the industry. SUZ outperforms 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.
- Compared to 1 year ago, SUZ has a worse debt to assets ratio.
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 of 1.25. This is comparable 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.
- SUZ has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SUZ (2.20) is worse 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 Current ratio of 3.16. This is amongst the best in 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's Quick ratio of 2.48 is amongst the best of the industry. SUZ outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
- SUZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.85%, which is quite impressive.
- 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.
- 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
- 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
- SUZ is valuated reasonably with a Price/Earnings ratio of 9.66.
- 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.
- When comparing the Price/Earnings ratio of SUZ to the average of the S&P500 Index (27.25), we can say SUZ is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.71, the valuation of SUZ can be described as reasonable.
- Based on the Price/Forward Earnings ratio, SUZ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- SUZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.71 |
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.
- Based on the Price/Free Cash Flow ratio, SUZ is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 5.66 |
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.
- 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.
- 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
- 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 2Y75.48%
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 9.66 and the Price/Book (PB) ratio is 1.49.
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.