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Suzano Papel e Celulose SA
(NYSE:SUZ)
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Rating:65Neutral
Price Target:
$9.00
▼(-0.33% Downside)
Action:Reiterated
Date:08/20/26
SUZ scores as moderately attractive, led by compelling valuation (low P/E with a dividend) and decent underlying profitability/cash generation. The main constraints are balance-sheet leverage and earnings/top-line volatility, reinforced by a balanced latest earnings call that highlights cost and market headwinds despite ongoing deleveraging efforts. Technicals are mixed and do not materially strengthen the case.
Positive Factors
Cash Generation
Strong operating cash flow and growing free cash flow support debt service, reinvestment and strategic flexibility. Although conversion is moderate, sustained positive cash generation provides resilience through pulp-cycle fluctuations.
Negative Factors
Elevated Leverage
Despite prior improvement and positive cash flow, Suzano still carries substantial debt, with leverage rising after weaker LTM EBITDA and Arbex debt consolidation. This limits flexibility if pulp prices or operating results deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Strong operating cash flow and growing free cash flow support debt service, reinvestment and strategic flexibility. Although conversion is moderate, sustained positive cash generation provides resilience through pulp-cycle fluctuations.
Read all positive factors
Suzano Papel e Celulose SA (SUZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.48B
Dividend Yield2.33%
Average Volume (3M)3.45M
Price to Earnings (P/E)7.1
Beta (1Y)0.40
Revenue Growth0.87%
EPS Growth12.10%
CountryUS
Employees53,000
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)6.65
Shares Outstanding1,264,117,700
10 Day Avg. Volume4,194,400
30 Day Avg. Volume3,450,960
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.44
Price to Sales (P/S)1.29
P/FCF Ratio11.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.00Price Target Upside43.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.48
Revenue Forecast (FY)$10.31B
Suzano Papel e Celulose SA Business Overview & Revenue Model
Company Description
Suzano S.A. is a prominent global producer and seller of eucalyptus pulp and paper products, with operations extending internationally from its base in Brazil. Its core business is structured around distinct Pulp and Paper segments. The company's ...
How the Company Makes Money
Suzano makes money primarily by selling market pulp—especially bleached eucalyptus kraft pulp (BEKP)—to third-party customers such as tissue, printing and writing, packaging, and specialty paper producers around the world. Revenue is generated thr...
Suzano Papel e Celulose SA Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: solid operational execution with positive free cash flow, a high-margin pulp result (BRL 4.2bn EBITDA at 48%), successful closing of the Arbex acquisition and meaningful hedging protection. However, the quarter also showed notable headwinds — YoY EBITDA contraction in Brazilian operations, higher cash costs (BRL 843/ton, +5% QoQ), operational ramp-up issues, and market pressures in China and from geopolitical events that raised oil-related and input costs. Management is focused on deleveraging, cost guidance delivery and Arbex-driven efficiencies, but near-term risks to margins and leverage remain. On balance, positives and negatives appear roughly balanced.Positive Updates
Solid Operational Results and Positive Free Cash Flow
Company reported positive free cash flow in Q2 which helped reduce net debt from $13.0 billion in Q1 2026 to $12.8 billion in Q2 2026. Management emphasized resilience despite volatile geopolitical conditions.
Negative Updates
Year-over-Year EBITDA Contraction and Leverage Tick-Up
Despite QoQ improvement, Brazilian operations EBITDA declined 20% YoY. Leverage increased from 3.3x in Q1 2026 to 3.4x in Q2 2026 due to contraction in last-12-month EBITDA. Consolidation of Arbex net debt (100%) with only one quarter of Arbex EBITDA will affect leverage metrics in the short term.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Operational Results and Positive Free Cash Flow
Company reported positive free cash flow in Q2 which helped reduce net debt from $13.0 billion in Q1 2026 to $12.8 billion in Q2 2026. Management emphasized resilience despite volatile geopolitical conditions.
Read all positive updates
Company Guidance
Suzano reiterated a clear focus on cost control and deleveraging: management kept 2026 cash‑cost guidance (ex‑downtimes) at ~BRL 800/ton (Q2 was BRL 843/ton, with downtime costs of BRL 129/ton) and expects a gradual cash‑cost decline in coming quarters; free cash flow remained positive, helping net debt fall from $13.0bn in Q1 to $12.8bn in Q2 while leverage ticked to 3.4x LTM EBITDA (from 3.3x) with a target below 2.5x in 2027–28; hedges materially protect cash flow (Q2 FX hedges gave +BRL 480m, zero‑cost collar of $4.6bn with avg put BRL 6.11 covering 57% of USD exposure; oil‑related costs rose BRL 275m in Q2 but ~BRL 150m of hedging (~60%) offset this, with 85% coverage of hedgeable exposure in H2‑2026 and 35% in 2027; sensitivities: Brent at $87/bbl implies +BRL 250m cash over 18 months, and BRL at 5.19 implies >BRL 4bn positive adjustments over 24 months); balance‑sheet metrics include a USD cost of debt of 5.1% and a 76‑month amortization profile, and the company issued BRL 2.5bn ($500m) of local paper with ~11‑year tenor at ~60bps below the local benchmark.Suzano Papel e Celulose SA Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.29B | 49.13B | 47.40B | 39.76B | 49.83B | 40.97B |
| Gross Profit | 13.49B | 15.28B | 20.00B | 14.68B | 25.01B | 20.35B |
| EBITDA | 28.32B | 37.63B | 23.46B | 29.40B | 40.18B | 19.67B |
| Net Income | 8.21B | 13.14B | -7.07B | 14.08B | 23.38B | 8.63B |
Balance Sheet | ||||||
| Total Assets | 170.78B | 167.85B | 165.94B | 143.59B | 133.20B | 118.98B |
| Cash, Cash Equivalents and Short-Term Investments | 26.23B | 25.10B | 21.99B | 21.17B | 17.05B | 21.10B |
| Total Debt | 97.00B | 106.22B | 108.41B | 83.42B | 80.76B | 85.52B |
| Total Liabilities | 121.01B | 123.92B | 133.52B | 98.78B | 100.03B | 103.80B |
| Stockholders Equity | 49.62B | 43.79B | 32.28B | 44.69B | 33.06B | 15.08B |
Cash Flow | ||||||
| Free Cash Flow | 5.01B | 5.56B | 4.07B | -241.59M | 6.80B | 11.39B |
| Operating Cash Flow | 16.86B | 17.80B | 20.60B | 17.32B | 21.64B | 17.64B |
| Investing Cash Flow | -13.55B | -9.65B | -20.51B | -26.04B | -17.02B | -10.36B |
| Financing Cash Flow | 1.44B | -1.78B | -83.77M | 7.80B | -8.11B | -1.57B |
Suzano Papel e Celulose SA Technical Analysis
Positive
9.03
Price Trends
8.30
Positive
8.46
Positive
9.09
Positive
Market Momentum
0.22
Negative
66.13
Neutral
74.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUZ, the sentiment is Positive. The current price of 9.03 is above the 20-day moving average (MA) of 8.52, above the 50-day MA of 8.30, and below the 200-day MA of 9.09, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUZ.
Suzano Papel e Celulose SA Risk Analysis
Suzano Papel e Celulose SA disclosed 45 risk factors in its most recent earnings report. Suzano Papel e Celulose SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Suzano Papel e Celulose SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $11.48B | 7.08 | 17.50% | 2.57% | 0.87% | 12.10% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $1.42B | 18.56 | 7.84% | 4.70% | -7.13% | -64.17% | |
58 Neutral | $19.22B | -5.59 | -22.39% | 4.39% | 10.34% | -7165.92% | |
55 Neutral | $337.39M | -6.81 | -6.13% | ― | -1.93% | 48.75% | |
46 Neutral | $2.72M | -0.26 | -4.53% | ― | -0.28% | -4.98% | |
39 Underperform | $24.01M | -0.05 | -638.67% | 11.18% | -4.81% | -372.95% |
* Basic Materials Sector Average
SUZ
Suzano Papel e Celulose SA
9.15
-0.28
-3.00%
CLW
Clearwater Paper
20.70
-1.31
-5.95%
IP
International Paper Co
36.44
-9.95
-21.46%
MERC
Mercer International
0.36
-2.87
-88.73%
ITP
IT Tech Packaging
0.16
-0.04
-21.15%
SLVM
Sylvamo Corp
35.53
-7.99
-18.35%
Suzano Papel e Celulose SA Corporate Events
Suzano Posts Strong 2Q26 Cash Generation Despite Higher Costs and Rising Leverage
Aug 13, 2026
On August 13, 2026, Suzano reported its second-quarter 2026 results, highlighting consolidated adjusted EBITDA of R$4.7 billion and adjusted free cash flow of R$3.3 billion, driven by higher pulp prices and increased pulp and Brazilian paper volum...
Suzano Files Mid‑Year 2026 Results Showing Lower Net Sales
Aug 13, 2026
Suzano has filed unaudited condensed consolidated interim financial information for the six‑month period ended June 30, 2026, with the U.S. Securities and Exchange Commission on Form 6‑K as a foreign private issuer. The filing, which i...
Suzano Posts Lower 2Q26 Profit but Strong Cash Flow and Closes Kimberly-Clark JV Deal
Aug 13, 2026
On August 12, 2026, Suzano reported its consolidated results for the second quarter of 2026, showing adjusted EBITDA of R$4.7 billion and free cash flow of R$3.3 billion, supported by higher pulp and paper prices and volumes despite year‑on&...
Suzano Announces Leadership Change in Pulp Industrial Operations
Aug 4, 2026
On August 4, 2026, Suzano S.A. announced that Executive Vice President of Pulp Industrial Operations, Engineering and Energy, Aires Galhardo, has resigned effective August 28, 2026. The board expressed deep gratitude for Galhardo’s more than...
Suzano Closes $1.3 Billion Majority Stake Joint Venture with Kimberly-Clark’s Arbex
Jul 1, 2026
On July 1, 2026, Suzano completed the acquisition, via its subsidiary Suzano International Holding B.V., of a 51% stake in FamPro Tissue Holdings B.V., to be renamed Arbex, from Kimberly-Clark. The transaction aligns with Suzano’s strategy o...
Suzano S.A. Board Approves Non-Dilutive Capital Increase via Tax Incentive Reserves
Jun 10, 2026
On June 2, 2026, Suzano S.A.’s board of directors met by videoconference and unanimously approved a modest increase in the company’s share capital, using R$14.57 million from its tax incentive reserve tied to SUDENE reinvestment benefi...
Suzano Secures Antitrust Approvals for Global Tissue JV with Kimberly-Clark
May 28, 2026
On May 28, 2026, Suzano S.A. reported that all required approvals from competition authorities had been secured for its planned acquisition of a 51% stake in a new Netherlands-based company to be formed with Kimberly-Clark. This marks a key regula...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.