Suzano S.A. American Depositary Shares (each representing One Ordinary Share) (SUZ)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• High return on equity of 35.2% demonstrating efficient capital deployment
• Attractive 2.2% dividend yield providing steady income returns

Concerns

• High leverage at 2.31x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 7.5% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Suzano S.A. American Depositary Shares (each representing One Ordinary Share) is a mid-cap basic materials company valued at $11.6 billion. The business generates $50.1 billion in annual revenue with a 0.2% net margin. From a quality standpoint, Suzano shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 4.3x, with offers a 77% margin of safety vs Graham Number of $42. Growth dynamics show revenue growing at -7.5% and profit growth of 101.6%. The 2.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Suzano's consistent 35% ROE at just 4x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 2.3x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Sluggish -8% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer