Last Updated: 11 Nov 2024
Executive Summary
Suzano Papel e Celulose SA (SUZ) is a leading producer of eucalyptus pulp and paper products in Brazil and internationally. The company has a strong financial position with high profitability and low debt. Suzano's stock price has been volatile in recent months but is currently trading below its 52-week high. The company's fundamentals remain strong, and analysts are optimistic about its long-term prospects.
Company Overview
Suzano was founded in 1924 and is headquartered in Salvador, Brazil. The company has a global presence with operations in over 90 countries. Suzano's main products include eucalyptus pulp, paper, and packaging. The company also produces bioenergy and chemicals.
Fundamental Analysis
Suzano's financial performance has been strong in recent years. The company's revenue has grown steadily, and its profitability has improved. In 2023, Suzano reported revenue of $43.6 billion and net income of $2.2 billion. The company's EBITDA margin was 49.5%, and its net profit margin was 10.1%.
Suzano's balance sheet is also strong. The company has a low level of debt and a high level of cash. As of December 31, 2023, Suzano had $3.2 billion in cash and equivalents and $7.5 billion in debt. The company's debt-to-equity ratio was 0.45.
Technical Analysis
Suzano's stock price has been volatile in recent months. The stock price reached a 52-week high of $12.98 in April 2023 but has since fallen to $10.17. The stock is currently trading below its 50-day and 200-day moving averages.
The technical indicators are mixed. The relative strength index (RSI) is below 50, indicating that the stock is oversold. The moving average convergence divergence (MACD) is also below zero, indicating that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for Suzano's stock is uncertain. The stock price is trading below its moving averages, and the technical indicators are mixed. However, the company's fundamentals remain strong, and analysts are optimistic about its long-term prospects.
Long Term Outlook
The long-term outlook for Suzano's stock is positive. The company is a leader in the pulp and paper industry, and it has a strong financial position. The company is also well-positioned to benefit from the growing demand for sustainable products.
Analyst Recommendations
Analysts are optimistic about Suzano's long-term prospects. The consensus analyst rating for the stock is "buy." The average analyst price target is $13.44, which represents a potential upside of 32.3% from the current price.
