Suzano S.A. Fundamental Analysis (NYSE: SUZ)
Suzano S.A. (NYSE: SUZ) shows strong financial fundamentals with a PE ratio of 0.03, profit margin of 37.42%, and ROE of 38.74%. The company generates $48.3B in annual revenue with moderate year-over-year growth of 5.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SUZ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSUZ demonstrates superior asset utilization.
Valuation Score
ExcellentSUZ trades at attractive valuation levels.
Growth Score
ModerateSUZ shows steady but slowing expansion.
Financial Health Score
ModerateSUZ shows balanced financial health with some risks.
Profitability Score
ExcellentSUZ achieves industry-leading margins.
Key Financial Metrics
Is SUZ Expensive or Cheap?
P/E Ratio
SUZ trades at 0.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SUZ's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Suzano S.A. at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.01 times EBITDA. This is generally considered low.
How Well Does SUZ Make Money?
Net Profit Margin
For every $100 in sales, Suzano S.A. keeps $37.42 as profit after all expenses.
Operating Margin
Core operations generate 17.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $38.74 in profit for every $100 of shareholder equity.
ROA
Suzano S.A. generates $10.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Suzano S.A. generates strong operating cash flow of $16.86B, reflecting robust business health.
Free Cash Flow
Suzano S.A. generates strong free cash flow of $5.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.05 in free cash annually.
FCF Yield
SUZ converts 9.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
38.74
vs 25 benchmark
ROA
Return on assets percentage
10.58
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SUZ Stacks Against Its Sector Peers
| Metric | SUZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.03 | 27.31 | Better (Cheaper) |
| ROE | 3874.10% | 1175.00% | Excellent |
| Net Margin | 3742.00% | 198.00% | Excellent |
| Debt/Equity | 1.95 | 0.73 | Weak (High Leverage) |
| Current Ratio | 3.38 | 3.13 | Strong Liquidity |
| ROA | 1058.05% | 2742.00% | Weak |
SUZ outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROE, but lagging in Debt/Equity.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Suzano S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
79.50%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
236.39%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
50.96%
Industry Style: Cyclical, Commodity, Value
High Growth