$Suzano (SUZ.US)$The Brazilian company, which went public in...
$Suzano (SUZ.US)$The Brazilian company, which went public in 2018, has seen rapid revenue growth over the past 5 years, with an average growth rate of 36.3%. The growth rate in 2022 was 21.6%. Operating profit plummeted by 52% in 2019 due to a significant decline in gross margin, but then returned to normal. The 5-year average growth rate is 46%, with a growth rate of 23.2% in 2022. Net income suffered consecutive losses in 2019 and 2020 due to high interest expenses and huge losses from selling securities. It was not until 2021 that the company returned to profit. In 2022, the gains from selling securities reached 10.1 billion, leading to a 1.7-fold increase in net income.
Revenue in Q1 2023 increased by 15.7%, operating profit increased by 28.2%, but net income shrank by 49% due to a significant decrease in gains from selling securities.
Currently, the PE ratio is 2.74, while the trailing PE ratio has risen to 3.5. However, considering the significant impact of fluctuating gains and losses from selling securities on net income, calculated at an average net income of 3.764 billion BRL, equivalent to 0.784 billion USD, the corresponding PE ratio is 15.2. Due to the risk of profit volatility, it is currently not very attractive.
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