SUZANO SA - SPON ADR (SUZ) Stock Fundamental Analysis
NYSE:SUZ - New York Stock Exchange, Inc. - US86959K1051 - ADR - Currency: USD
Overall SUZ gets a fundamental rating of 5 out of 10. We evaluated SUZ against 9 industry peers in the Paper & Forest Products industry. SUZ has an average financial health and profitability rating. SUZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SUZ had negative 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 Return On Assets (-0.61%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -2.47%, SUZ is in line with its industry, outperforming 55.56% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.06%, SUZ is in the better half of 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 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
The Operating Margin of SUZ (29.52%) is better than 100.00% of its industry peers.
SUZ's Operating Margin has improved in the last couple of years.
SUZ has a Gross Margin of 40.54%. 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 | 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 just above the Cost of Capital (WACC), so SUZ is still 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.
The debt/assets ratio for SUZ is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.29, SUZ is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of SUZ is 14.99, which is on the high side as it means it would take SUZ, 14.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.99, SUZ is in line with its industry, outperforming 55.56% of the companies in the same industry.
A Debt/Equity ratio of 2.44 is on the high side and indicates that SUZ has dependencies on debt 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/WACC1.23
WACC6.58%
2.3 Liquidity
SUZ has a Current Ratio of 2.61. This indicates that SUZ is financially healthy and has no problem in meeting its short term obligations.
SUZ's Current ratio of 2.61 is fine compared to the rest 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.
The Quick ratio of SUZ (1.96) is better than 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.
The Revenue has grown by 30.47% in the past year. This is a very strong growth!
Measured over the past years, SUZ shows a quite strong growth in Revenue. The Revenue has been growing by 12.75% on average per year.
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
Based on estimates for the next years, SUZ will show a very strong growth in Earnings Per Share. The EPS will grow by 54.62% on average per year.
SUZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
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 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
SUZ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 5.68, the valuation of SUZ can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SUZ indicates a rather cheap valuation: SUZ is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SUZ to the average of the S&P500 Index (36.44), we can say SUZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than SUZ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SUZ is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| 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.
A more expensive valuation may be justified as SUZ's earnings are expected to grow with 54.62% in the coming years.
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 1.34%. Purely for dividend investing, there may be better candidates out there.
SUZ's Dividend Yield is a higher than the industry average which is at 3.03.
With a Dividend Yield of 1.34, SUZ pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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.
SUZ has decreased its dividend recently.
Dividend Growth(5Y)20.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of SUZ are negative and hence is the payout ratio. SUZ will probably not be able to sustain this dividend level.
SUZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-264.34%
EPS Next 2Y89.79%
EPS Next 3Y54.62%
9.06
-0.02 (-0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners27.26%
Inst Owner Change0%
Ins Owners15.51%
Ins Owner ChangeN/A
Market Cap11.20B
Analysts82.73
Price Target13.63 (50.44%)
Short Float %0.42%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)-1.27%
PT rev (3m)-3.97%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)27.29%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)3.53%
Revenue NQ rev (1m)-2.01%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.68 | ||
| P/S | 1.26 | ||
| P/FCF | 9.57 | ||
| P/OCF | 2.84 | ||
| P/B | 1.63 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)-0.11
EYN/A
EPS(NY)1.6
Fwd EY17.61%
FCF(TTM)0.95
FCFY10.45%
OCF(TTM)3.18
OCFY35.15%
SpS7.18
BVpS5.57
TBVpS3.59
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
WACC6.58%
ROIC/WACC1.23
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 5Y7.1%
EBIT growth 1Y77.04%
EBIT growth 3Y-4.42%
EBIT growth 5Y42.3%
EBIT Next Year76.21%
EBIT Next 3Y28.29%
EBIT Next 5Y18.78%
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%