Südzucker SZU.DE
What does Südzucker do?
Südzucker is a European agricultural and food industry group headquartered in Mannheim. The company processes mainly sugar beet and grain into sugar, specialty products, starch, bioethanol and fruit preparations. The business is divided into the segments Sugar, Special Products, CropEnergies, Starch and Fruit. Customers are predominantly food and beverage manufacturers, retailers and the animal feed and fuel industries.
In the sugar business, Südzucker is among the largest providers in Europe and operates a dense network of beet factories that are closely tied to growing regions and contract farmers. The specialty products division, with functional ingredients and frozen products, and the fruit business are intended to reduce dependence on the volatile sugar market. Competitors are other European sugar producers, international agribusiness groups and importers from third countries. The cost structure is strongly determined by raw material and energy prices as well as processing efficiency.
Score profile
Rank vs. Packaged Foods (26 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Südzucker ranks below average in the group Packaged Foods (3.1/10). On growth, the company ranks above average in the group Packaged Foods (7.4/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Packaged Foods (4.6/10). On financial strength, Südzucker ranks above average in the group Packaged Foods (6.7/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 15.2x | 12.2x | better than 30 % |
| PEG ratio | 17.3x | 2.2x | better than 2 % |
| EV/EBITDA | 8.6x | 8.9x | better than 62 % |
| Price/sales | 0.3x | 0.9x | better than 90 % |
| Price/book | 1.4x | 1.6x | better than 65 % |
| Revenue growth | 4.1% | -2.1% | better than 75 % |
| Earnings growth | 0.0% | -13.2% | better than 73 % |
| Gross margin | 33.9% | 29.5% | better than 75 % |
| Operating margin | 4.4% | 10.6% | better than 13 % |
| Net margin | -3.2% | 3.9% | better than 18 % |
| Return on equity | -6.9% | 6.8% | better than 17 % |
| Debt/equity | 62.2% | 79.6% | better than 60 % |
| Current ratio | 2.6x | 1.7x | better than 78 % |
| Free cash flow yield | 8.9% | 5.8% | better than 63 % |
| Dividend yield | 1.8% | 3.6% | – |
| Beta | -0.24 | 0.40 | – |
Valuation: what is Südzucker worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Südzucker a model range of 8.97 EUR to 23.51 EUR per share.
5 analysts, average rating “—”, average price target 12.84 EUR (+14.4%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The sugar price in the EU largely determines revenue and margins of the largest segment.
- Beet harvest and yields significantly influence factory utilization, processing volumes and unit costs.
- Ethanol, grain and energy prices shape the results of CropEnergies and Starch.
Risks
- Highly volatile sugar and raw material prices can quickly weigh on margins, as revenue and costs do not move in step.
- Weather, pests and plant diseases endanger beet yields and thus the volume and quality of raw material.
- Regulation on agricultural policy, biofuels, trade agreements and sugar imports can significantly change competitive conditions.
What to look for with Südzucker
Operating profit by segment is particularly meaningful because sugar, ethanol, starch and specialty products are subject to very different price and cost cycles.