SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
NYSE:SUZ - US86959K1051 - ADR
9.63 USD
+0.1 (+1.05%)
9.63 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SUZ. SUZ was compared to 9 industry peers in the Paper & Forest Products industry. While SUZ has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SUZ. 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.
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
The Return On Assets of SUZ (4.91%) is better than 66.67% of its industry peers.
SUZ has a Return On Equity of 18.14%. This is in the better half of the industry: SUZ outperforms 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 5.72%.
| 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 has a Profit Margin of 15.26%. This is amongst the best in 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
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
Compared to 5 years ago, SUZ has less shares outstanding
SUZ has a worse debt/assets ratio than last year.
2.2 Solvency
SUZ has an Altman-Z score of 1.25. This is a bad value and indicates that SUZ is not financially healthy and even has some risk of bankruptcy.
SUZ has a Altman-Z score of 1.25. This is in the lower half of the industry: SUZ underperforms 66.67% 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.
SUZ has a Debt to FCF ratio (17.09) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.20 is on the high side and indicates that SUZ has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.20, SUZ is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 17.09 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.05
WACC6.72%
2.3 Liquidity
SUZ has a Current Ratio of 3.16. This indicates that SUZ is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SUZ (3.16) is better 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.
SUZ has a better Quick ratio (2.48) than 100.00% of its industry peers.
| 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 3877.50% over the past year.
Looking at the last year, SUZ shows a very strong growth in Revenue. The Revenue has grown by 27.38%.
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)3877.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%236.73%
Revenue 1Y (TTM)27.38%
Revenue growth 3Y4.99%
Revenue growth 5Y12.75%
Sales Q2Q%15.68%
3.2 Future
SUZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.36% yearly.
Based on estimates for the next years, SUZ will show a quite strong growth in Revenue. The Revenue will grow by 15.19% on average per year.
EPS Next Y248.01%
EPS Next 2Y80.84%
EPS Next 3Y52.36%
EPS Next 5YN/A
Revenue Next Year10.13%
Revenue Next 2Y13.56%
Revenue Next 3Y11.71%
Revenue Next 5Y15.19%
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 8.16.
Based on the Price/Earnings ratio, SUZ is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, SUZ is valued rather cheaply.
SUZ is valuated cheaply with a Price/Forward Earnings ratio of 7.42.
Based on the Price/Forward Earnings ratio, SUZ is valued cheaper than 88.89% of the companies in the same industry.
SUZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUZ is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
SUZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SUZ is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.22 | ||
| EV/EBITDA | 5.69 |
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 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 52.36% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y80.84%
EPS Next 3Y52.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, SUZ has a reasonable but not impressive dividend return.
SUZ's Dividend Yield is a higher than the industry average which is at 3.54.
With a Dividend Yield of 1.28, SUZ pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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.
The dividend of SUZ decreased recently.
Dividend Growth(5Y)20.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SUZ pays out 32.13% of its income as dividend. This is a sustainable payout ratio.
The dividend of SUZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.13%
EPS Next 2Y80.84%
EPS Next 3Y52.36%
9.63
+0.1 (+1.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners27.26%
Inst Owner Change4.98%
Ins Owners15.51%
Ins Owner ChangeN/A
Market Cap11.90B
Analysts82.73
Price Target13.95 (44.86%)
Short Float %0.44%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.24
Dividend Growth(5Y)20.94%
DP32.13%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)104.78%
Min EPS beat(2)12.88%
Max EPS beat(2)196.69%
EPS beat(4)3
Avg EPS beat(4)-81.54%
Min EPS beat(4)-569.87%
Max EPS beat(4)196.69%
EPS beat(8)6
Avg EPS beat(8)-62.1%
EPS beat(12)9
Avg EPS beat(12)-31.22%
EPS beat(16)12
Avg EPS beat(16)-21.71%
Revenue beat(2)1
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-6.63%
Max Revenue beat(2)0.92%
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)5
Avg Revenue beat(8)-0.03%
Revenue beat(12)7
Avg Revenue beat(12)-0.52%
Revenue beat(16)10
Avg Revenue beat(16)-0.12%
PT rev (1m)1.45%
PT rev (3m)1.11%
EPS NQ rev (1m)-40.83%
EPS NQ rev (3m)-51.61%
EPS NY rev (1m)-15.01%
EPS NY rev (3m)-15.03%
Revenue NQ rev (1m)-3.9%
Revenue NQ rev (3m)-7.78%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-6.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 7.42 | ||
| P/S | 1.26 | ||
| P/FCF | 11.22 | ||
| P/OCF | 3.19 | ||
| P/B | 1.5 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)1.18
EY12.25%
EPS(NY)1.3
Fwd EY13.48%
FCF(TTM)0.86
FCFY8.92%
OCF(TTM)3.02
OCFY31.35%
SpS7.65
BVpS6.43
TBVpS4.43
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 18.14% | ||
| ROCE | 8.99% | ||
| ROIC | 7.05% | ||
| ROICexc | 8.18% | ||
| ROICexgc | 9.16% | ||
| OM | 25.74% | ||
| PM (TTM) | 15.26% | ||
| GM | 37.73% | ||
| FCFM | 11.22% |
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-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 17.09 | ||
| Debt/EBITDA | 4 | ||
| Cap/Depr | 138.59% | ||
| Cap/Sales | 28.23% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 85.57% | ||
| Profit Quality | 73.57% | ||
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 1.25 |
F-Score7
WACC6.72%
ROIC/WACC1.05
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)3877.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%236.73%
EPS Next Y248.01%
EPS Next 2Y80.84%
EPS Next 3Y52.36%
EPS Next 5YN/A
Revenue 1Y (TTM)27.38%
Revenue growth 3Y4.99%
Revenue growth 5Y12.75%
Sales Q2Q%15.68%
Revenue Next Year10.13%
Revenue Next 2Y13.56%
Revenue Next 3Y11.71%
Revenue Next 5Y15.19%
EBIT growth 1Y18.91%
EBIT growth 3Y-4.42%
EBIT growth 5Y42.3%
EBIT Next Year76.21%
EBIT Next 3Y28.29%
EBIT Next 5Y20.91%
FCF growth 1Y71.41%
FCF growth 3Y-30.27%
FCF growth 5Y9.93%
OCF growth 1Y-7.35%
OCF growth 3Y5.32%
OCF growth 5Y22.15%