Suzano S.A. (SUZ): A Bull Case Theory 

We came across a bullish thesis on Suzano S.A. on Value investing subreddit by cameronreilly. In this article, we will summarize the bulls’ thesis on SUZ. Suzano S.A.’s share was trading at $9.63 as of September 5th. SUZ’s trailing and forward P/E were 8.23 and 8.14 respectively according to Yahoo Finance.

Suzano (NYSE: SUZ), the world’s largest producer of eucalyptus pulp, has grown from its origins in the 1920s under founder Leon Feffer into a global leader in the paper and pulp industry. Still family-controlled with a 49% stake, the company’s scale is unmatched, producing roughly 17% of global market pulp supply through more than eight mills across Brazil and serving over 80 countries. Following a transformative $14 billion merger in 2018.

Suzano has become a cash-generating machine, producing approximately $3 billion in operating cash flow last year against a $12 billion market capitalization, trading at just 3.2x price-to-operating cash flow. Its structural cost advantage stems from eucalyptus trees, which mature in just seven years compared to nearly 20 years for pine, enabling a low unit cash cost of roughly $150 per ton—among the most competitive globally. This advantage, coupled with strong family alignment through significant ownership, reinforces Suzano’s durability.

The company faces risks from cyclical pulp price downturns, exposure to Brazilian sovereign and currency volatility, and ESG scrutiny tied to monoculture plantations, water usage, and greenwashing concerns. However, catalysts are emerging, including a $3.4 billion joint venture with Kimberly-Clark that secures Suzano a controlling stake in 22 tissue mills across 70+ countries, expanding its downstream footprint into consumer brands like Kleenex and Scott.

Additional drivers include acquisitions of U.S. paperboard mills and robust shareholder returns via buybacks and dividends. While Suzano screens attractively as a cheap, cash-rich business with long-term competitive advantages, the optimal entry point depends on a recovery in pulp prices, making patience essential for investors seeking exposure.

Previously we covered a bullish thesis on Magnera Corporation (MAGN) by Phenom Capital in March 2025, which highlighted synergy potential, utilization recovery, and high free cash flow yield. The company’s stock price has depreciated approximately by 36.85% since our coverage. This is because the thesis didn’t play out. The thesis still stands as synergies remain unrecognized. Cameronreilly shares a similar view on Suzano but emphasizes structural cost advantage and global scale.

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Disclosure: None.