Suzano SA (SUZ, Financial), a leading player in the Forest Products industry, has been making waves in the stock market with its impressive performance. The company's market cap stands at $14.88 billion, with its stock price currently at $11.54. Over the past week, the stock has seen a gain of 3.93%, and over the past three months, it has surged by 21.16%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value is at $13.18, compared to the past GF Value of $14.67. This indicates that the stock is modestly undervalued, a change from the past valuation that suggested a possible value trap.
Company Overview
Suzano SA is a Brazil-based company that specializes in the production and sale of pulp and a variety of paper products. The company organizes itself into two segments based on product type: Pulp and Paper. The Pulp segment generates the majority of revenue. The firm's product portfolio includes printing and writing paper, paperboard, diapers, and sanitary napkins. The company owns forest land and plants in Brazil, where it harvests timber and turns the timber into pulp and paper in its plants. More revenue comes from Europe than any other geographic area.
Profitability Analysis
Suzano SA boasts a Profitability Rank of 8/10, indicating a high level of profitability. The company's operating margin is 41.61%, better than 99.65% of the companies in the industry. The ROE and ROA stand at 69.99% and 17.64% respectively, both of which are higher than the majority of the companies in the industry. The ROIC is 15.28%, better than 86.99% of the companies in the industry. Over the past 10 years, the company has been profitable for 5 years, better than 21.48% of the companies in the industry.
Growth Prospects
The company's Growth Rank is 7/10, indicating a high level of growth. The 3-year and 5-year revenue growth rates per share are 24.80% and 31.70% respectively, both of which are higher than the majority of the companies in the industry. However, the company's future total revenue growth rate is estimated to be -7.88%, which is better than 0% of the companies in the industry.
Major Holders
Jim Simons (Trades, Portfolio) is a major holder of Suzano SA, holding 1506702 shares, which accounts for 0.12% of the company's shares.
Competitive Landscape
Suzano SA faces competition from several companies in the Forest Products industry. Klabin SA (BSP:KLBN3, Financial) has a market cap of $5.09 billion, UPM-Kymmene Oyj (OHEL:UPM, Financial) has a market cap of $18.69 billion, and Celulosa Argentina SA (BUE:CELU, Financial) has a market cap of $14.26 billion.
Conclusion
In conclusion, Suzano SA's stock performance, company profile, profitability, growth, holders, and competitors all paint a picture of a company that is performing well in the market. Despite facing stiff competition, the company has managed to maintain a high level of profitability and growth. However, the future total revenue growth rate is a concern that needs to be addressed. Overall, Suzano SA's current position and future prospects in the market look promising.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
