WallStSmart

Mercer International Inc (MERC)vsSuzano Papel e Celulose SA ADR (SUZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Suzano Papel e Celulose SA ADR generates 2577% more annual revenue ($49.53B vs $1.85B). SUZ leads profitability with a 23.0% profit margin vs -28.5%. SUZ earns a higher WallStSmart Score of 57/100 (C).

MERC

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.3Quality: 6.0
Piotroski: 2/9Altman Z: 0.79

SUZ

Buy

57

out of 100

Grade: C

Growth: 2.0Profit: 7.5Value: 8.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MERCUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$11.92

Current Price

$0.87

$11.05 discount

UndervaluedFair: $11.92Overvalued
SUZUndervalued (+50.8%)

Margin of Safety

+50.8%

Fair Value

$22.71

Current Price

$8.18

$14.53 discount

UndervaluedFair: $22.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MERC1 strengths · Avg: 10.0/10
Debt/EquityHealth
-292.7810/10

Conservative balance sheet, low leverage

SUZ4 strengths · Avg: 9.5/10
P/E RatioValuation
4.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

Areas to Watch

MERC4 concerns · Avg: 3.0/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Market CapQuality
$56.27M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-244.3%2/10

ROE of -244.3% — below average capital efficiency

SUZ4 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-5.1%2/10

Revenue declined 5.1%

EPS GrowthGrowth
-31.9%2/10

Earnings declined 31.9%

Free Cash FlowQuality
$-101.68M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MERC

The strongest argument for MERC centers on Debt/Equity.

Bull Case : SUZ

The strongest argument for SUZ centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 23.0% and operating margin at 16.7%.

Bear Case : MERC

The primary concerns for MERC are PEG Ratio, Market Cap, Piotroski F-Score.

Bear Case : SUZ

The primary concerns for SUZ are Revenue Growth, EPS Growth, Free Cash Flow. Debt-to-equity of 2.03 is elevated, increasing financial risk.

Key Dynamics to Monitor

MERC profiles as a turnaround stock while SUZ is a declining play — different risk/reward profiles.

MERC carries more volatility with a beta of 0.49 — expect wider price swings.

MERC is growing revenue faster at -3.5% — sustainability is the question.

MERC generates stronger free cash flow (-99M), providing more financial flexibility.

Bottom Line

SUZ scores higher overall (57/100 vs 33/100), backed by strong 23.0% margins. MERC offers better value entry with a 85.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Mercer International Inc

BASIC MATERIALS · PAPER & PAPER PRODUCTS · USA

Mercer International Inc., manufactures and sells Northern Bleached Softwood Kraft Pulp (NBSK) in Europe, the United States, Asia and internationally. The company is headquartered in Vancouver, Canada.

Suzano Papel e Celulose SA ADR

BASIC MATERIALS · PAPER & PAPER PRODUCTS · USA

Suzano SA produces and sells eucalyptus pulp and paper products in Brazil and internationally. The company is headquartered in Salvador, Brazil.

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