SUZSuzano S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.2×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margin-driven, fat margins on slower asset turns. ROE 15% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SUZ?
Suzano S.A. earns 6.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.2 points below what the capital costs: growth destroys value
- Operating margin
- 21%
Operating margin · Basic Materials median 9.9% · 12 months to Q4 2025
- Cash conversion
- 2.16×
Cash conversion · 1.66× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 32%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 28% |
| FY2021 | 44% |
| FY2022 | 45% |
| FY2023 | 31% |
| FY2024 | 33% |
| FY2025 | 21% |
Details›
- Gross margin12 months to Q4 2025
- 32%
- Operating margin12 months to Q4 2025
- 21%
- Net margin12 months to Q4 2025
- 27%
- Free cash flow margin
- 27%
- Revenue, trailing twelve months
- $50.1B
- Free cash flow, trailing twelve months
- $13.6B
- Net income, trailing twelve months
- $13.4B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Basic Materials
Ranks #30 of 179 by RyuScore