Now trading at a price of $10.02, Suzano has moved -0.9% so far today.
Suzano returned losses of -11.5% last year, with its stock price reaching a high of $12.98 and a low of $8.78. Over the same period, the stock underperformed the S&P 500 index by -37.8%. AThe company's 50-day average price was $10.3. Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. The Large-Cap Basic Materials company is headquartered in Salvador, Brazil. Suzano has not offered a dividend during the last year.
Wider Gross Margins Than the Industry Average of 17.25%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $13,443 | $26,013 | $30,460 | $40,965 | $49,831 | $39,756 |
| Gross Margins | 49% | 20% | 38% | 50% | 50% | 37% |
| Net Margins | 2% | -11% | -35% | 21% | 47% | 35% |
| Net Income (M) | $320 | -$2,815 | -$10,715 | $8,636 | $23,395 | $14,106 |
| Net Interest Expense (M) | -$4,843 | -$6,726 | $2,016 | -$10,423 | $472 | -$1,225 |
| Depreciation & Amort. (M) | $1,563 | $8,092 | $3,415 | $3,578 | $3,813 | $3,728 |
| Diluted Shares (M) | 1,106 | 1,361 | 1,361 | 1,361 | 1,361 | 1,324 |
| Earnings Per Share | $0.29 | -$2.09 | -$7.95 | $6.39 | $17.57 | $10.85 |
| EPS Growth | n/a | -820.69% | -280.38% | 180.38% | 174.96% | -38.25% |
| Free Cash Flow (M) | $5,169 | $7,576 | $7,448 | $9,624 | $11,577 | $7,047 |
| Total Debt (M) | $32,311 | $57,456 | $70,856 | $75,973 | $71,240 | $72,414 |
| Net Debt / EBITDA | 4.25 | 5.06 | 5.4 | 2.87 | 2.37 | 4.02 |
| Current Ratio | 5.08 | 1.65 | 2.2 | 2.95 | 2.56 | 2.61 |
Suzano has exceptional EPS growth and an excellent current ratio of 2.61. Additionally, the company's financial statements display wider gross margins than its peer group and generally positive cash flows. However, the firm has a highly leveraged balance sheet.
The Market May Be Undervaluing Suzano's Assets and Equity:
Suzano has a trailing twelve month P/E ratio of 19.8, compared to an average of 24.53 for the Basic Materials sector. Based on its EPS guidance of $1.48, the company has a forward P/E ratio of 7.0. According to the 26.2% compound average growth rate of Suzano's historical and projected earnings per share, the company's PEG ratio is 0.76. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 15.7%. On this basis, the company's PEG ratio is 1.26. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing Suzano in terms of its equity because its P/B ratio is 0.3 whereas the sector average is 2.64. The company's shares are currently trading -89.0% above their Graham number.
Analysts Give Suzano an Average Rating of Buy:
The 5 analysts following Suzano have set target prices ranging from $11.5 to $18.0 per share, for an average of $14.12 with a buy rating. The company is trading -29.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Suzano has a very low short interest because 0.2% of the company's shares are sold short. Institutions own 3.6% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Atlas FRM LLC, whose 4% stake in the company is worth $153,506,407.
