SUZANO SA - SPON ADR (SUZ)
US86959K1051 - ADR
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. While SUZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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 was profitable.
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.
In the past 5 years SUZ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SUZ (9.81%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 31.51%, SUZ belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
With a Return On Invested Capital value of 6.57%, SUZ perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SUZ is in line with the industry average of 11.23%.
The last Return On Invested Capital (6.57%) for SUZ is well below the 3 year average (10.96%), which needs to be investigated, but indicates that SUZ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 31.51% | ||
| ROIC | 6.57% |
ROA(3y)11.54%
ROA(5y)4.24%
ROE(3y)53.15%
ROE(5y)-0.9%
ROIC(3y)10.96%
ROIC(5y)8.41%
1.3 Margins
Looking at the Profit Margin, with a value of 35.43%, SUZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SUZ's Profit Margin has improved in the last couple of years.
SUZ has a Operating Margin of 26.61%. This is amongst the best in the industry. SUZ outperforms 100.00% of its industry peers.
SUZ's Operating Margin has declined in the last couple of years.
SUZ's Gross Margin of 36.92% is amongst the best of the industry. SUZ outperforms 100.00% of its industry peers.
SUZ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.61% | ||
| PM (TTM) | 35.43% | ||
| GM | 36.92% |
OM growth 3Y0.11%
OM growth 5Y-7.01%
PM growth 3YN/A
PM growth 5Y71.77%
GM growth 3Y-0.99%
GM growth 5Y-5.31%
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.
The number of shares outstanding for SUZ has been reduced compared to 1 year ago.
SUZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SUZ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that SUZ is in the distress zone and has some risk of bankruptcy.
SUZ's Altman-Z score of 1.53 is on the low side compared to the rest of the industry. SUZ is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 1.74 is on the high side and indicates that SUZ has dependencies on debt financing.
The Debt to Equity ratio of SUZ (1.74) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.68
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.61 indicates that SUZ has no problem at all paying its short term obligations.
SUZ has a better Current ratio (2.61) than 77.78% of its industry peers.
SUZ has a Quick Ratio of 2.20. This indicates that SUZ is financially healthy and has no problem in meeting its short term obligations.
SUZ's Quick ratio of 2.20 is amongst the best of the industry. SUZ outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
SUZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.53%.
Measured over the past years, SUZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 106.26% on average per year.
Looking at the last year, SUZ shows a very negative growth in Revenue. The Revenue has decreased by -20.22% in the last year.
Measured over the past years, SUZ shows a very strong growth in Revenue. The Revenue has been growing by 24.23% on average per year.
EPS 1Y (TTM)-38.53%
EPS 3YN/A
EPS 5Y106.26%
EPS growth Q2Q-38.38%
Revenue 1Y (TTM)-20.22%
Revenue growth 3Y9.28%
Revenue growth 5Y24.23%
Revenue growth Q2Q-27.82%
3.2 Future
The Earnings Per Share is expected to decrease by -11.61% on average over the next years. This is quite bad
SUZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.32% yearly.
EPS Next Y-55.98%
EPS Next 2Y-22.68%
EPS Next 3Y-11.61%
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y10.33%
Revenue Next 3Y9.21%
Revenue Next 5Y7.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.54, the valuation of SUZ can be described as very cheap.
Based on the Price/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/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.57, SUZ is valued correctly.
Based on the Price/Forward Earnings ratio, SUZ is valued a bit cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SUZ to the average of the S&P500 Index (20.58), we can say SUZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUZ is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
SUZ has a very decent profitability rating, which may justify a higher PE ratio.
SUZ's earnings are expected to decrease with -11.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-22.68%
EPS Next 3Y-11.61%
5. Dividend
5.1 Amount
SUZ has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.92, SUZ pays a better dividend. On top of this SUZ pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SUZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of SUZ decreases each year by -5.08%.
SUZ has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1.37% of the earnings are spent on dividend by SUZ. This is a low number and sustainable payout ratio.
The Dividend Rate of SUZ has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP1.37%
EPS Next 2Y-22.68%
EPS Next 3Y-11.61%
SUZANO SA - SPON ADR
NYSE:SUZ (5/6/2024, 7:04:00 PM)
After market: 11.75 0 (0%)11.75
+0.09 (+0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 12.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 31.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.61% | ||
| PM (TTM) | 35.43% | ||
| GM | 36.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-38.53%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-55.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.22%
Revenue growth 3Y9.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y