BOVESPA:SUZB3

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 54.48% per year

Risk Analysis

No risks detected for SUZB3 from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Suzano's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUZB3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SUZB3's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

10.6%

SUZB3

4.5%

BR Forestry

-0.7%

BR Market


1 Year Return

48.4%

SUZB3

11.9%

BR Forestry

0.8%

BR Market

Return vs Industry: SUZB3 exceeded the BR Forestry industry which returned 11.9% over the past year.

Return vs Market: SUZB3 exceeded the BR Market which returned 0.8% over the past year.


Shareholder returns

SUZB3IndustryMarket
7 Day10.6%4.5%-0.7%
30 Day14.4%14.6%4.9%
90 Day28.8%16.7%16.8%
1 Year48.4%48.4%12.6%11.9%3.5%0.8%
3 Year220.8%215.7%14.0%7.3%54.4%37.8%
5 Yearn/a79.7%68.6%219.0%164.3%

Long-Term Price Volatility Vs. Market

How volatile is Suzano's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Suzano undervalued compared to its fair value and its price relative to the market?

66.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SUZB3 (R$65.96) is trading above our estimate of fair value (R$43.05)

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


Price To Earnings Ratio

PE vs Industry: SUZB3 is unprofitable, so we can't compare its PE Ratio to the XX Forestry industry average.

PE vs Market: SUZB3 is unprofitable, so we can't compare its PE Ratio to the BR market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUZB3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUZB3 is overvalued based on its PB Ratio (66.7x) compared to the XS Forestry industry average (0.6x).


Next Steps

Future Growth

How is Suzano forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

54.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUZB3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.9%).

Earnings vs Market: SUZB3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SUZB3's is expected to become profitable in the next 3 years.

Revenue vs Market: SUZB3's revenue (6.5% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: SUZB3's revenue (6.5% 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 very high in 3 years time (56.3%).


Next Steps

Past Performance

How has Suzano performed over the past 5 years?

-75.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUZB3 is currently unprofitable.

Growing Profit Margin: SUZB3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SUZB3 is unprofitable, and losses have increased over the past 5 years at a rate of 75.1% per year.

Accelerating Growth: Unable to compare SUZB3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SUZB3 is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-1.8%).


Return on Equity

High ROE: SUZB3 has a negative Return on Equity (-1061.59%), as it is currently unprofitable.


Next Steps

Financial Health

How is Suzano's financial position?


Financial Position Analysis

Short Term Liabilities: SUZB3's short term assets (R$18.5B) exceed its short term liabilities (R$12.4B).

Long Term Liabilities: SUZB3's short term assets (R$18.5B) do not cover its long term liabilities (R$91.6B).


Debt to Equity History and Analysis

Debt Level: SUZB3's debt to equity ratio (5391.5%) is considered high.

Reducing Debt: SUZB3's debt to equity ratio has increased from 168.9% to 5391.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SUZB3 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SUZB3 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 41.2% per year.


Next Steps

Dividend

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

1.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SUZB3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SUZB3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SUZB3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUZB3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SUZB3 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUZB3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Walter Schalka (60 yo)

8yrs

Tenure

Mr. Walter Schalka serves as Chief Executive Officer of Suzano S.A. ( Formerly known as Suzano Papel e Celulose S.A.) and served as its Member of the Executive Board. Mr. Schalka served as the Chief Execut...


Leadership Team

NamePositionTenureCompensationOwnership
Walter Schalka
Chief Executive Officer8yrsno datano data
Marcelo Bacci
CFO, IR Director & Member of Management Board7yrsno datano data
Carlos Anibal de Almeida
Executive Officer of Pulp Commercial Business & Member of Management Boardno datano datano data
Alexandre Chueri Neto
Executive Officer of Forestry Unit & Member of Management Boardno datano datano data
Leonardo Barretto De Grimaldi
Executive Officer of Paper Business & Member of Management Boardno datano datano data
Aires Galhardo
Executive Officer of Pulp Operation & Member of Management Board2yrsno datano data
Christian Orglmeister
Executive Officer of People Management2yrsno datano data
Fernando De Lellis Bertolucci
Executive Officer of Research & Development and Member of Management Board2yrsno datano data
Pablo Francisco Machado
Executive Officer of Legal & Secretaryno datano datano data
Maria De Oliveira Pinto e Paiva
Executive Officer of Sustainability0.50yrno datano data
Luis Renato Bueno
Executive Officer of Consumer Goods0.50yrno datano data
Vinicius Nonino
Executive Officer of Business Development0.50yrno datano data

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: SUZB3's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Claudio Lobo Sonder
Vice Chairmanno datano datano data
Nildemar Secches
Independent Director13yrsno datano data
Paulo Caffarelli
Independent Director1yrno datano data
David Feffer
Chairmanno datano data3.96%
R$ 3.5b
Luiz Augusto Paes
Member of Fiscal Councilno datano datano data
Rodrigo Galindo
Independent Director1yrno datano data
Rubens Barletta
Member of Fiscal Councilno datano datano data
Ana Pessoa
Independent Director1.75yrsno datano data
Daniel Feffer
Vice Chairmanno datano data3.56%
R$ 3.2b
Rodrigo de Freitas Lima
Independent Directorno datano datano data
Maria Priscila Rodini Machado
Independent Directorno datano datano data
Hélio Magalhães
Independent Director1yrno datano data

1.0yrs

Average Tenure

61yo

Average Age

Experienced Board: SUZB3's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suzano S.A.
  • Ticker: SUZB3
  • Exchange: BOVESPA
  • Founded: 1924
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: R$88.914b
  • Shares outstanding: 1.35b
  • Website: https://www.suzano.com.br

Number of Employees


Location

  • Suzano S.A.
  • Av. Professor MagalhAes Neto, No. 1752
  • 10th floor
  • Salvador
  • Bahia
  • 41810-012
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUZNYSE (New York Stock Exchange)SPON ADSUSUSDFeb 2005
SPXBBST (Boerse-Stuttgart)SPON ADSDEEURFeb 2005
SUZ NBMV (Bolsa Mexicana de Valores)SPON ADSMXMXNFeb 2005
SPXBDB (Deutsche Boerse AG)SPON ADSDEEURFeb 2005
SUZB3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLNov 2017

Biography

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 pap...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 21:56
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.