One-glance verdict
Within fair range
$9.46 our estimate vs market $8.69
Wall Street consensus: $12.56 (32.8% higher than our fair-value estimate)
8% below our estimate
Fundamentals snapshot
Suzano S.A.
SUZ · NYQ · Basic Materials · Paper & Paper Products
Current price
$8.69
52-week range
$7.55 - $11.54
Market cap
$10.70B
Balance sheet
Stretched
1.64x Concerning
Net debt $14.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 5.7% last year.
- Reward Returns 17.6% on equity, ahead of 75% of its peers.
- Risk Stock trades 749.4% above its 5-year average P/E.
- Risk Net debt grew 20.3% over 3 years.
What this company does
Suzano S.A.
Suzano is one of the world's largest producers of pulp, the raw wood fiber used to make everyday items like paper, diapers, and cardboard boxes. The company makes most of its money by selling this pulp to other businesses globally, which means its financial health is closely tied to the global price of this raw material. When global demand (how much is wanted by buyers) for products like tissue and packaging is high, pulp prices tend to rise, which is good for Suzano's business.
How the company got here
Founded in 1924 by a Ukrainian immigrant in Brazil, Suzano started as a paper trading business. A key turning point came in the 1950s when the founder's son pioneered the use of eucalyptus trees to make pulp (the raw material for paper), a move that revolutionized the industry. Over the decades, the company grew by acquiring other paper and pulp producers, including a major merger in 2019 that made it the world's largest producer of eucalyptus pulp. This focus on eucalyptus, which grows quickly in Brazil, gives the company a significant cost advantage over competitors who use other types of wood.
What it actually does
Suzano is a forestry-based company that plants and harvests eucalyptus trees to make two main things: pulp and paper. You can think of pulp as the main ingredient, like flour for a baker, which Suzano sells to other companies worldwide to make products like tissues, diapers, and specialty papers. The company also uses its own pulp to manufacture and sell finished paper products that you might see in stores or offices, such as printing paper, paper cups, packaging, and toilet paper.
Pulp
This is Suzano's largest and most profitable business segment, making up the vast majority of its revenue (the total money it brings in). The company produces and sells different types of wood pulp, primarily from its eucalyptus forests, to other manufacturers around the globe. These customers then use Suzano's pulp as the raw material to create a wide variety of consumer goods, including tissue paper, diapers, feminine hygiene products, and printing paper. Most of this pulp is sold to international customers, especially in Asia and Europe.
Paper
In this segment, Suzano acts as the baker, using its own pulp to create and sell finished goods. This part of the business is smaller than its pulp operations but is focused on products sold mainly in Brazil and other parts of Latin America. The products include things you'd recognize, like paper for printing and writing, paperboard for packaging and boxes, and consumer items like toilet paper, paper towels, and napkins. Through acquisitions, Suzano has become a leader in Brazil's toilet paper market.
What management is betting on now
The company's strategy focuses on three main areas to drive future growth. First, it aims to strengthen its competitive advantages by improving the productivity of its forests and lowering costs. Second, Suzano is investing heavily in new, highly efficient production facilities to increase its pulp output. Finally, management is focused on sustainability and innovation, developing new bio-products from eucalyptus that can replace plastics and other fossil-fuel-based materials in things like packaging and textiles.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $9.46 vs current price $8.69
Wall Street consensus is the average analyst price target: $12.56 (32.8% higher than our fair-value estimate).
Our most-likely fair value is $9.46 a share — about 8.8% away from today's price of $8.69, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $14.1B. Interest coverage 1.6x.
Net debt
$14.10B
Interest coverage
1.64x
Suzano S.A.'s profit covers its interest bill about 1.6 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
SUZ
BASELINE
Suzano S.A.
Total debt $19.17B Interest coverage 1.64x This is the baseline the peer rows are being compared against.
Total debt $9.90B Interest coverage -0.02x -100% vs SUZ This peer has almost no interest-payment cushion compared with SUZ.
Total debt $4.40B Interest coverage 15.87x +868% vs SUZ Carries about 9.7x more debt cushion than SUZ.
Total debt $4.83B Interest coverage 2.94x +79% vs SUZ Carries about 1.8x more debt cushion than SUZ.
What you should know
The case for and against SUZ
3 Rewards
3 Risks
Rewards
-
Revenue grew 5.7% last year.
-
Returns 17.6% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 749.4% above its 5-year average P/E.
-
Net debt grew 20.3% over 3 years.
-
Operating margin compressed from 41.9% to 26.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
6.90x
Forward P/E
5.87x
P/B
1.14x
P/S
0.22x
EV/EBITDA
4.23x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
29.1%
Operating margin
26.7%
Net margin
17.1%
ROE
17.6%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.99x
Current ratio
3.38x
Quick ratio
2.47x
Total debt
$19.17B
Total cash
$5.06B
Growth
How the business has been compounding
Revenue TTM
$9.22B
Revenue 5Y CAGR
0.2%
EPS TTM
1.26
EPS 5Y CAGR
-14.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.50B
Free CF TTM
$1.08B
FCF margin
11.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
17.8%
Last ex-div date
2026-05-04