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. SUZ has only an average score on both its financial health and profitability. SUZ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SUZ had negative 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.
Each year in the past 5 years SUZ had a positive operating cash flow.
1.2 Ratios
SUZ has a Return On Assets (-0.61%) which is in line with its industry peers.
With a Return On Equity value of -2.47%, SUZ perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
SUZ has a Return On Invested Capital of 8.06%. This is in the better half of the industry: SUZ outperforms 77.78% of its industry peers.
SUZ had an Average Return On Invested Capital over the past 3 years of 9.38%. This 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
SUZ has a Operating Margin of 29.52%. This is amongst the best in the industry. SUZ outperforms 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 40.54%. This is amongst the best in the industry. SUZ outperforms 100.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUZ is destroying value.
SUZ has less shares outstanding than it did 1 year ago.
SUZ has less shares outstanding than it did 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 1.29, we must say that SUZ is in the distress zone and has some risk of bankruptcy.
SUZ's Altman-Z score of 1.29 is on the low side compared to the rest of the industry. SUZ is outperformed by 66.67% of its industry peers.
SUZ has a debt to FCF ratio of 14.99. This is a negative value and a sign of low solvency as SUZ would need 14.99 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.99, SUZ perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
SUZ has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
SUZ's Debt to Equity ratio of 2.44 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 | 2.44 | ||
| Debt/FCF | 14.99 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.74
WACC10.9%
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 Current ratio of 2.61. This is in the better half of the industry: SUZ outperforms 77.78% of its industry peers.
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.
SUZ has a Quick ratio of 1.96. This is amongst the best in the industry. SUZ outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The earnings per share for SUZ have decreased strongly by -108.51% in the last year.
SUZ shows a strong growth in Revenue. In the last year, 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
SUZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.62% yearly.
The Revenue is expected to grow by 8.08% on average over the next years. This is quite good.
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 5Y8.08%
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
The Price/Earnings Ratio is negative for SUZ. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 5.62 indicates a rather cheap valuation of SUZ.
100.00% of the companies in the same industry are more expensive than SUZ, based on the Price/Forward Earnings ratio.
SUZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUZ is valued a bit cheaper than 77.78% of the companies in the same industry.
SUZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SUZ is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 5.65 |
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
SUZ has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.19, SUZ pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, SUZ pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
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%
8.81
-0.12 (-1.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners29.42%
Inst Owner Change9.23%
Ins Owners15.51%
Ins Owner ChangeN/A
Market Cap10.89B
Analysts81.82
Price Target13.99 (58.8%)
Short Float %0.47%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend0.23
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)0%
PT rev (3m)3.53%
EPS NQ rev (1m)30.62%
EPS NQ rev (3m)21.72%
EPS NY rev (1m)0.26%
EPS NY rev (3m)10.43%
Revenue NQ rev (1m)-6.6%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.62 | ||
| P/S | 1.25 | ||
| P/FCF | 9.46 | ||
| P/OCF | 2.81 | ||
| P/B | 1.61 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)-0.11
EYN/A
EPS(NY)1.57
Fwd EY17.81%
FCF(TTM)0.93
FCFY10.57%
OCF(TTM)3.13
OCFY35.55%
SpS7.06
BVpS5.47
TBVpS3.53
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 | 1.29 |
F-Score5
WACC10.9%
ROIC/WACC0.74
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 5Y8.08%
EBIT growth 1Y77.04%
EBIT growth 3Y-4.42%
EBIT growth 5Y42.3%
EBIT Next Year76.21%
EBIT Next 3Y28.29%
EBIT Next 5Y19.87%
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%