Suedzucker (SZU) AI Stock Analysis

• Market Cap: €1.97B
• Dividend Yield: 2.23%
• Average Volume (3M): 188.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -14.58%
• EPS Growth: -191.94%
• Country: DE
• Employees: 19,853
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.02
• Shares Outstanding: 204,183,290
• 10 Day Avg. Volume: 234,684
• 30 Day Avg. Volume: 188,846
• PEG Ratio: 0.24
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 6.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €9.50
• Price Target Upside: -1.66% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: €9.50 ▼(-1.66% Downside)

The score is held back primarily by weak financial performance, with a swing to TTM losses, slightly negative free cash flow, and worsening leverage. Technicals offer limited support via short-term strength versus the 20/50-day averages, but the stock remains below longer-term averages and momentum indicators are mixed. Valuation is also constrained because the negative P/E reflects current unprofitability, with only modest support from the dividend yield.

Positive Factors

Diversified product portfolio

Broad product mix across sugar, specialty food ingredients, fruit preparations, starch and ethanol reduces reliance on a single commodity cycle. Diversification supports stable industrial and consumer demand, cross-selling and margin mix management over a multi-month horizon.

Scale and market position

Large-scale European footprint confers procurement, processing and distribution advantages versus smaller peers. Scale supports long-term contracts with major food manufacturers, cost efficiency and resilience to regional demand shifts over the next several months.

Operating cash flow support

Sustained positive operating cash flow provides internal liquidity to fund working capital and operations despite near-term earnings weakness. A meaningful equity base (~2.4B) offers a buffer to absorb shocks and maintain strategic investments over a medium-term horizon.

Negative Factors

Swing to sustained losses

A TTM net loss of €168M marks a meaningful earnings deterioration from recent profitable years. Persistent losses erode retained earnings and constrain capacity to self-fund investments, dividends or deleveraging, increasing strategic pressure over coming quarters.

Worsening leverage

Rising gross debt and debt-to-equity above 1x reduce financial flexibility. Higher leverage increases interest and refinancing risk, narrows room for operational setbacks, and limits capital allocation options, a structural constraint if profitability does not recover.

Declining free cash flow quality

FCF turning slightly negative after prior strong years indicates weaker cash conversion or higher reinvestment needs. Persistent negative FCF would force external funding for capex, working capital or debt service, pressuring balance sheet health across months ahead.

Suedzucker Business Overview & Revenue Model

Company Description

Südzucker AG produces and sells sugar products in Germany and internationally. It operates through five segments: Sugar, Special Products, CropEnergies, Starch, and Fruit. The Sugar segment produces and sells sugar, sugar specialty products, glucose syrup, and animal feed to food industry, retailers, and agriculture markets, as well as offers by-products of sugar. The Special Products segment produces functional food ingredients, including dietary fibers, sugar substitutes, sugar, rice starches/flours, and functionalized wheat protein for food, animal feed, non-food, and pharmaceutical industries. This segment also offers frozen and chilled pizzas, pasta, baguette, and sauces and dressings; and portion packed foods and non-food products to hotels, caterers, food retailers, and restaurants. The CropEnergies segment produces fuel-grade ethanol, rectified spirits, protein-based food and animal feed, and liquid CO2 to oil companies and traders, industrial and pharmaceutical companies, food and animal feed producers, and beverage and cosmetics producers. The Starch segment offers starches, saccharification products, ethanol, and byproducts which includes animal feed and fertilizers to food, paper, textiles, industrial chemicals, pharmaceuticals, cosmetics, petroleum, and animal feed industries. The Fruit segment produces fruit preparations for the dairy, ice cream, baked goods, and food service industries; and fruit juice concentrates, pure juices, fruit wines, natural aromas, and beverage bases for beverage industry. It is also involved in agricultural activities; and cultivation of wheat, sugar beet, corn, chicory, rapeseed, soybean, and other products. The company was founded in 1837 and is headquartered in Mannheim, Germany. Südzucker AG is a subsidiary of Süddeutsche Zuckerrübenverwertungs-Genossenschaft eG.

How the Company Makes Money

Suedzucker generates revenue primarily through its sugar production, which is the core of its business. The company sells sugar to both domestic and international markets, benefiting from high demand in the food and beverage industry. Additionally, the Special Products segment contributes significantly to revenue by offering specialty food products, including fruit preparations and starches, which are used in various applications such as confectionery and dairy products. The Fruit segment generates revenue through the production and sale of fruit-based products, while the Starch segment includes the production of glucose and other starch derivatives. Suedzucker also has strategic partnerships and long-term contracts with major food manufacturers, which help ensure a steady stream of income. Furthermore, the company capitalizes on by-products from its sugar production, such as animal feed, which adds to its overall profitability.

Suedzucker Financial Statement Overview

Summary

Mixed fundamentals: Income Statement is weak (revenue down -5.3% TTM and net loss ~€282M) and profitability has reversed sharply versus prior strong years. Offsetting factors include manageable leverage (debt-to-equity ~0.75) and relatively strong cash generation (TTM operating cash flow ~€870M; free cash flow ~€345M), though cash conversion versus EBITDA is not robust and losses pressure returns (negative ROE).

Income Statement

Performance has weakened materially in TTM (Trailing-Twelve-Months): revenue declined (-5.3%) and the company is loss-making (net loss of ~€282M, negative net margin). Profitability is volatile across the cycle—strong earnings in 2023–2024 (positive EBIT and net income) followed by a sharp reversal in the latest periods. While EBITDA remains positive in TTM (suggesting underlying operating capacity), the swing to negative net income and the recent revenue contraction weigh on quality and consistency.

Balance Sheet

Leverage looks manageable but not conservative: total debt is ~€2.34B versus ~€3.13B of equity in TTM (debt-to-equity ~0.75), and assets are sizable (~€8.50B). The main weakness is shareholder return pressure—TTM return on equity is negative (driven by losses), indicating the balance sheet is not currently producing attractive returns despite acceptable leverage.

Cash Flow

Cash generation is a relative bright spot: TTM operating cash flow is ~€870M and free cash flow is positive (~€345M), with a very strong free cash flow jump versus the prior period shown. However, cash conversion is not robust versus reported earnings power—operating cash flow covers only ~40% of EBITDA in TTM (and ~33% in the latest annual period), and free cash flow is positive despite net losses, suggesting results may be influenced by working-capital movements or other timing effects.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	8.58B	10.29B	9.69B	9.50B	6.68B	7.60B
Gross Profit	5.00B	3.48B	2.85B	3.09B	2.29B	2.45B
EBITDA	2.27B	1.28B	606.00M	1.10B	594.90M	692.10M
Net Income	-168.00M	589.00M	-78.00M	412.00M	-93.70M	77.70M
Balance Sheet
Total Assets	8.84B	10.28B	9.50B	9.70B	8.00B	8.44B
Cash, Cash Equivalents and Short-Term Investments	766.00M	485.00M	781.00M	490.10M	445.00M	399.30M
Total Debt	2.88B	2.22B	2.40B	2.28B	1.91B	1.88B
Total Liabilities	5.75B	6.00B	5.47B	5.50B	4.44B	4.74B
Stockholders Equity	2.43B	3.50B	3.27B	3.23B	2.68B	2.78B
Cash Flow
Free Cash Flow	-11.00M	527.00M	332.00M	-156.10M	195.50M	145.80M
Operating Cash Flow	468.00M	1.07B	906.00M	243.50M	480.50M	477.50M
Investing Cash Flow	-413.00M	-455.00M	-473.00M	-522.90M	-202.10M	-207.60M
Financing Cash Flow	-67.00M	-560.00M	-118.00M	209.00M	-271.70M	-150.70M

Suedzucker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SZU, the sentiment is Positive. The current price of 9.66 is above the 20-day moving average (MA) of 9.19, above the 50-day MA of 9.44, and below the 200-day MA of 10.17, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SZU.

Suedzucker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KWS	74 Outperform	€2.40B	55.45	11.16%	1.85%	-7.03%	-70.17%
JUN3	73 Outperform	€3.77B	13.25	11.92%	2.29%	-1.50%	2.01%
HHFA	63 Neutral	€2.23B	50.34	5.78%	0.47%	13.44%	113.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SZU	47 Neutral	€1.97B	-10.54	-11.78%	2.23%	-14.58%	-191.94%
BYW6	44 Neutral	€2.23B	-0.24	―	―	-11.67%	-1069.47%
VEZ	41 Neutral	€14.97M	0.40	178.50%	―	-59.36%	―

Suedzucker Corporate Events

Südzucker Projects Moderate EBITDA Growth Amidst Revenue Decline

Südzucker AG has released its initial forecast for the financial year 2026/27, anticipating a slight decrease in group revenues but a moderate increase in EBITDA, driven by improvements in the CropEnergies and special products segments. Despite challenging sugar market conditions and uncertainties due to geopolitical and economic developments, Südzucker confirms its forecast for the financial year 2025/26, expecting significant improvements in group EBITDA and operating results.

The most recent analyst rating on (DE:SZU) stock is a Hold with a EUR9.60 price target. To see the full list of analyst forecasts on Suedzucker stock, see the DE:SZU Stock Forecast page.