Last Updated: 14 Sep 2024
Executive Summary
Suzano Papel e Celulose SA ADR (SUZ) is a leading producer of eucalyptus pulp and paper products in Brazil and internationally. The company has a strong market position, supported by its large-scale operations and cost-effective production processes. However, the company faces challenges in the form of rising input costs and competition from alternative packaging materials.
Company Overview
Suzano is headquartered in Salvador, Brazil, and has operations in Brazil, Argentina, Colombia, and the United States. The company produces a wide range of pulp and paper products, including printing and writing paper, packaging paper, and tissue paper. Suzano also has a growing bioenergy business, which produces renewable energy from biomass.
Fundamental Analysis
Revenue: Suzano's revenue for the trailing twelve months (TTM) was $40.27 billion, a 0.255% increase year-over-year.
Earnings: The company's diluted EPS for the TTM was $0.04, a 0.958% decrease year-over-year.
Profitability: Suzano's profit margin is 0.0055, and its operating margin is 0.401.
Valuation: Suzano's trailing PE ratio is 241.75, and its forward PE ratio is 38.76. The company's price-to-sales ratio is 0.3, and its price-to-book ratio is 1.682.
Technical Analysis
Trend: SUZ has been trading in a downtrend since reaching a 52-week high of $12.98 in April 2023.
Support and Resistance: The stock has support at $9.77, which is the current price, and resistance at $10.59, which is the 200-day moving average.
Momentum: SUZ's momentum indicators are neutral. The relative strength index (RSI) is at 49.5, and the moving average convergence divergence (MACD) is below its signal line.
Short Term Outlook
In the short term, SUZ is likely to trade within a range of $9.77 to $10.59. The stock could break out of this range if it can close above $10.59 or below $9.77.
Long Term Outlook
In the long term, SUZ is a good investment for investors who are looking for exposure to the pulp and paper industry. The company has a strong market position and is well-positioned to benefit from the growing demand for sustainable packaging materials.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on SUZ. The average analyst target price is $13.49, which represents a potential upside of 38.1% from the current price.
