SUZB5 - Suzano Pulp and Paper

I will be editing this post while gathering more information. For now, look at this:

• This graph shows production growth:

• This one shows EBIT:

That is: company has been investing a lot, but EBIT has not gone up. So, what will be the return of heavy investments that SUZB plan to do in the next 4 years?

Now I try to estimate FCF:

I only considered fixed asset purchases that was directed to maintenance, as showed in 2010 company report. Also, I ignored assets variations, since the changes in the 2 years offset. This yield a FCF of 8.5%.

The problem is that we have just 2 years. Good news is that those years could be terrible years: weaken dollar and demand.

Another point worth to note is that present market value just match lands and properties.

The main issue continues to be return of future investments, that seems to be very low. And debt is already high.