SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
NYSE:SUZ - New York Stock Exchange, Inc. - US86959K1051 - ADR - Currency: USD
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. SUZ has an excellent profitability rating, but 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. Finally SUZ also has an excellent dividend rating. With these ratings, SUZ could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
SUZ had positive earnings in the past year.
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.
SUZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUZ has a better Return On Assets (4.91%) than 66.67% of its industry peers.
SUZ has a better Return On Equity (18.14%) than 77.78% of its industry peers.
SUZ's Return On Invested Capital of 7.05% is fine compared to the rest of the industry. SUZ outperforms 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SUZ is above the industry average of 6.22%.
| 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 better Profit Margin (15.26%) than 100.00% of its industry peers.
With an excellent Operating Margin value of 25.74%, SUZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SUZ has grown nicely.
Looking at the Gross Margin, with a value of 37.73%, SUZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
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 1.26, we must say that SUZ is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, SUZ is doing worse than 66.67% of the companies in the same industry.
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 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.
SUZ's Debt to Equity ratio of 2.20 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 | 2.2 | ||
| Debt/FCF | 17.09 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.04
WACC6.79%
2.3 Liquidity
A Current Ratio of 3.16 indicates that SUZ has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.16, SUZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
With an excellent Quick ratio value of 2.48, SUZ belongs to the best 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
SUZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3877.50%, which is quite impressive.
Looking at the last year, SUZ shows a very strong growth in Revenue. The Revenue has grown by 27.38%.
The Revenue has been growing by 12.75% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 54.62% on average over the next years. This is a very strong growth
Based on estimates for the next years, SUZ will show a small growth in Revenue. The Revenue will grow by 7.10% on average per year.
EPS Next Y273.7%
EPS Next 2Y89.79%
EPS Next 3Y54.62%
EPS Next 5YN/A
Revenue Next Year10.35%
Revenue Next 2Y13.6%
Revenue Next 3Y10.85%
Revenue Next 5Y7.1%
3.3 Evolution
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 8.42, the valuation of SUZ can be described as reasonable.
Based on the Price/Earnings ratio, SUZ is valued cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. SUZ is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.04, the valuation of SUZ can be described as very cheap.
SUZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. SUZ is cheaper than 88.89% of the companies in the same industry.
SUZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 6.04 |
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.
Based on the Price/Free Cash Flow ratio, SUZ is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 5.78 |
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.
SUZ's earnings are expected to grow with 54.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y89.79%
EPS Next 3Y54.62%
5. Dividend
5.1 Amount
SUZ has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
SUZ's Dividend Yield is rather good when compared to the industry average which is at 4.16. SUZ pays more dividend than 88.89% of the companies in the same industry.
SUZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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.
SUZ has decreased its dividend 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 2Y89.79%
EPS Next 3Y54.62%
9.94
-0.05 (-0.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners27.26%
Inst Owner Change-1.78%
Ins Owners15.51%
Ins Owner ChangeN/A
Market Cap12.28B
Analysts82.73
Price Target13.75 (38.33%)
Short Float %0.41%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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)0.94%
PT rev (3m)-1.67%
EPS NQ rev (1m)-16.37%
EPS NQ rev (3m)6.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)-7.56%
Revenue NY rev (1m)-6.65%
Revenue NY rev (3m)-6.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 6.04 | ||
| P/S | 1.29 | ||
| P/FCF | 11.52 | ||
| P/OCF | 3.28 | ||
| P/B | 1.54 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 5.78 |
EPS(TTM)1.18
EY11.87%
EPS(NY)1.65
Fwd EY16.55%
FCF(TTM)0.86
FCFY8.68%
OCF(TTM)3.03
OCFY30.52%
SpS7.69
BVpS6.47
TBVpS4.45
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 | 1.26 |
F-Score7
WACC6.79%
ROIC/WACC1.04
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 Y273.7%
EPS Next 2Y89.79%
EPS Next 3Y54.62%
EPS Next 5YN/A
Revenue 1Y (TTM)27.38%
Revenue growth 3Y4.99%
Revenue growth 5Y12.75%
Sales Q2Q%15.68%
Revenue Next Year10.35%
Revenue Next 2Y13.6%
Revenue Next 3Y10.85%
Revenue Next 5Y7.1%
EBIT growth 1Y18.91%
EBIT growth 3Y-4.42%
EBIT growth 5Y42.3%
EBIT Next Year76.21%
EBIT Next 3Y28.29%
EBIT Next 5Y18.78%
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%