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SUZB

Suzano BOVESPA:SUZB3 Stock Report

Last Price

R$49.69

Market Cap

R$67.0b

7D

8.9%

1Y

-17.6%

Updated

30 Jun, 2022

Data

Company Financials +
SUZB3 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends3/6

SUZB3 Stock Overview

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally.

Suzano Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Suzano
Historical stock prices
Current Share PriceR$49.69
52 Week HighR$64.56
52 Week LowR$44.91
Beta0.93
1 Month Change-7.12%
3 Month Change-8.34%
1 Year Change-17.64%
3 Year Change56.50%
5 Year Changen/a
Change since IPO141.68%

Recent News & Updates

May 22
Is Now An Opportune Moment To Examine Suzano S.A. (BVMF:SUZB3)?

Is Now An Opportune Moment To Examine Suzano S.A. (BVMF:SUZB3)?

Suzano S.A. ( BVMF:SUZB3 ) received a lot of attention from a substantial price movement on the BOVESPA over the last...

Shareholder Returns

SUZB3BR ForestryBR Market
7D8.9%7.3%-0.1%
1Y-17.6%-23.2%-29.3%

Return vs Industry: SUZB3 exceeded the BR Forestry industry which returned -24.1% over the past year.

Return vs Market: SUZB3 exceeded the BR Market which returned -29.1% over the past year.

Price Volatility

Is SUZB3's price volatile compared to industry and market?
SUZB3 volatility
SUZB3 Average Weekly Movement4.3%
Forestry Industry Average Movement5.9%
Market Average Movement5.9%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.9%

Stable Share Price: SUZB3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SUZB3's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1924n/aWalter Schalkahttps://www.suzano.com.br

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin and its byproducts.

Suzano Fundamentals Summary

How do Suzano's earnings and revenue compare to its market cap?
SUZB3 fundamental statistics
Market CapR$67.05b
Earnings (TTM)R$21.69b
Revenue (TTM)R$41.82b

3.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUZB3 income statement (TTM)
RevenueR$41.82b
Cost of RevenueR$21.20b
Gross ProfitR$20.62b
Other Expenses-R$1.07b
EarningsR$21.69b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)16.07
Gross Margin49.30%
Net Profit Margin51.86%
Debt/Equity Ratio270.9%

How did SUZB3 perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

8%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SUZB3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUZB3?

Other financial metrics that can be useful for relative valuation.

SUZB3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.9x
Enterprise Value/EBITDA5.2x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does SUZB3's PE Ratio compare to its peers?

SUZB3 PE Ratio vs Peers
The above table shows the PE ratio for SUZB3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average2.9x
RANI3 Irani Papel e Embalagem
4.9xn/aR$1.7b
GGBR4 Gerdau
2.4x-28.2%R$35.6b
BRKM5 Braskem
1.9x-33.5%R$29.8b
CSNA3 Companhia Siderúrgica Nacional
2.5x-14.6%R$20.5b
SUZB3 Suzano
3.1x-25.9%R$67.0b

Price-To-Earnings vs Peers: SUZB3 is expensive based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (2.9x).


Price to Earnings Ratio vs Industry

How does SUZB3's PE Ratio compare vs other companies in the Global Forestry Industry?

Price-To-Earnings vs Industry: SUZB3 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the South American Forestry industry average (3.8x)


Price to Earnings Ratio vs Fair Ratio

What is SUZB3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUZB3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ratio4.8x

Price-To-Earnings vs Fair Ratio: SUZB3 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the estimated Fair Price-To-Earnings Ratio (4.8x).


Share Price vs Fair Value

What is the Fair Price of SUZB3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUZB3 (R$49.69) is trading above our estimate of fair value (R$29.72)

Significantly Below Fair Value: SUZB3 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: SUZB3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Suzano forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-25.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUZB3's earnings are forecast to decline over the next 3 years (-25.9% per year).

Earnings vs Market: SUZB3's earnings are forecast to decline over the next 3 years (-25.9% per year).

High Growth Earnings: SUZB3's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SUZB3's revenue (0.3% per year) is forecast to grow slower than the BR market (5.6% per year).

High Growth Revenue: SUZB3's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUZB3's Return on Equity is forecast to be high in 3 years time (22.5%)


Discover growth companies

Past Performance

How has Suzano performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUZB3 has high quality earnings.

Growing Profit Margin: SUZB3 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SUZB3 has become profitable over the past 5 years, growing earnings by 19.6% per year.

Accelerating Growth: SUZB3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SUZB3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (198.7%).


Return on Equity

High ROE: Whilst SUZB3's Return on Equity (85.48%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Suzano's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SUZB3's short term assets (R$31.7B) exceed its short term liabilities (R$7.7B).

Long Term Liabilities: SUZB3's short term assets (R$31.7B) do not cover its long term liabilities (R$79.8B).


Debt to Equity History and Analysis

Debt Level: SUZB3's net debt to equity ratio (196.7%) is considered high.

Reducing Debt: SUZB3's debt to equity ratio has increased from 130.1% to 270.9% over the past 5 years.

Debt Coverage: SUZB3's debt is well covered by operating cash flow (27.9%).

Interest Coverage: SUZB3's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


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Dividend

What is Suzano current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.39%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SUZB3's dividend (2.39%) is higher than the bottom 25% of dividend payers in the BR market (1.76%).

High Dividend: SUZB3's dividend (2.39%) is low compared to the top 25% of dividend payers in the BR market (7.89%).


Stability and Growth of Payments

Stable Dividend: SUZB3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SUZB3's dividend payments have increased, but the company has only paid a dividend for 4 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.3%), SUZB3's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.3%), SUZB3's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Walter Schalka (61 yo)

9.42yrs

Tenure

Mr. Walter Schalka is Independent Director at Vibra Energia S.A. since May 2022. He serves as Chief Executive Officer of Suzano S.A. ( Formerly known as Suzano Papel e Celulose S.A.) and serves as its Memb...


Leadership Team

Experienced Management: SUZB3's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SUZB3's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Suzano S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Suzano S.A.
  • Ticker: SUZB3
  • Exchange: BOVESPA
  • Founded: 1924
  • Industry: Paper Products
  • Sector: Materials
  • Implied Market Cap: R$67.049b
  • Shares outstanding: 1.35b
  • Website: https://www.suzano.com.br

Number of Employees


Location

  • Suzano S.A.
  • Av. Professor MagalhAes Neto, 1,752
  • 10th Floor
  • Salvador
  • Bahia
  • 41810-012
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.