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Summit Materials Inc (SUM) Stock Fundamental Analysis

NYSE:SUM - US86614U1007 - Common Stock

52.49 USD
+0.04 (+0.08%)
Last: 2/10/2025, 8:24:42 PM
52.55 USD
+0.06 (+0.11%)
After Hours: 2/10/2025, 8:24:42 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SUM. SUM was compared to 13 industry peers in the Construction Materials industry. Both the profitability and the financial health of SUM get a neutral evaluation. Nothing too spectacular is happening here. SUM shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

SUM had positive earnings in the past year.
In the past year SUM had a positive cash flow from operations.
Each year in the past 5 years SUM has been profitable.
In the past 5 years SUM always reported a positive cash flow from operatings.
SUM Yearly Net Income VS EBIT VS OCF VS FCFSUM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

1.2 Ratios

SUM's Return On Assets of 1.75% is on the low side compared to the rest of the industry. SUM is outperformed by 91.67% of its industry peers.
SUM's Return On Equity of 3.31% is on the low side compared to the rest of the industry. SUM is outperformed by 91.67% of its industry peers.
SUM has a worse Return On Invested Capital (4.51%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SUM is significantly below the industry average of 10.36%.
Industry RankSector Rank
ROA 1.75%
ROE 3.31%
ROIC 4.51%
ROA(3y)5.18%
ROA(5y)4.04%
ROE(3y)11.46%
ROE(5y)9.43%
ROIC(3y)4.89%
ROIC(5y)4.65%
SUM Yearly ROA, ROE, ROICSUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

SUM has a worse Profit Margin (3.92%) than 83.33% of its industry peers.
SUM's Profit Margin has improved in the last couple of years.
SUM has a worse Operating Margin (12.64%) than 66.67% of its industry peers.
SUM's Operating Margin has improved in the last couple of years.
The Gross Margin of SUM (29.81%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SUM has remained more or less at the same level.
Industry RankSector Rank
OM 12.64%
PM (TTM) 3.92%
GM 29.81%
OM growth 3Y10.44%
OM growth 5Y8.05%
PM growth 3Y22.64%
PM growth 5Y46.57%
GM growth 3Y2.73%
GM growth 5Y-0.58%
SUM Yearly Profit, Operating, Gross MarginsSUM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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4

2. Health

2.1 Basic Checks

SUM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SUM has more shares outstanding than it did 1 year ago.
SUM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SUM has a worse debt to assets ratio.
SUM Yearly Shares OutstandingSUM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SUM Yearly Total Debt VS Total AssetsSUM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 2.36 indicates that SUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.36, SUM perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
The Debt to FCF ratio of SUM is 16.66, which is on the high side as it means it would take SUM, 16.66 years of fcf income to pay off all of its debts.
SUM has a worse Debt to FCF ratio (16.66) than 75.00% of its industry peers.
SUM has a Debt/Equity ratio of 0.63. This is a neutral value indicating SUM is somewhat dependend on debt financing.
SUM has a Debt to Equity ratio of 0.63. This is amonst the worse of the industry: SUM underperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 16.66
Altman-Z 2.36
ROIC/WACC0.51
WACC8.78%
SUM Yearly LT Debt VS Equity VS FCFSUM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 3.10 indicates that SUM has no problem at all paying its short term obligations.
SUM's Current ratio of 3.10 is amongst the best of the industry. SUM outperforms 91.67% of its industry peers.
A Quick Ratio of 2.48 indicates that SUM has no problem at all paying its short term obligations.
SUM has a better Quick ratio (2.48) than 91.67% of its industry peers.
Industry RankSector Rank
Current Ratio 3.1
Quick Ratio 2.48
SUM Yearly Current Assets VS Current LiabilitesSUM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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8

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.27% over the past year.
The Earnings Per Share has been growing by 59.94% on average over the past years. This is a very strong growth
SUM shows a strong growth in Revenue. In the last year, the Revenue has grown by 49.48%.
The Revenue has been growing slightly by 4.51% on average over the past years.
EPS 1Y (TTM)1.27%
EPS 3Y24.17%
EPS 5Y59.94%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)49.48%
Revenue growth 3Y3.94%
Revenue growth 5Y4.51%
Sales Q2Q%47.35%

3.2 Future

Based on estimates for the next years, SUM will show a very strong growth in Earnings Per Share. The EPS will grow by 25.33% on average per year.
The Revenue is expected to grow by 24.77% on average over the next years. This is a very strong growth
EPS Next Y10.65%
EPS Next 2Y22.95%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue Next Year64.9%
Revenue Next 2Y33.36%
Revenue Next 3Y24.77%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SUM Yearly Revenue VS EstimatesSUM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
SUM Yearly EPS VS EstimatesSUM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.81, which means the current valuation is very expensive for SUM.
75.00% of the companies in the same industry are cheaper than SUM, based on the Price/Earnings ratio.
SUM is valuated rather expensively when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.12, the valuation of SUM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SUM is valued a bit cheaper than 66.67% of the companies in the same industry.
SUM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.81
Fwd PE 22.12
SUM Price Earnings VS Forward Price EarningsSUM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SUM indicates a slightly more expensive valuation: SUM is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 54.44
EV/EBITDA 13.43
SUM Per share dataSUM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SUM's earnings are expected to grow with 25.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.08
PEG (5Y)0.55
EPS Next 2Y22.95%
EPS Next 3Y25.33%

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0

5. Dividend

5.1 Amount

SUM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Summit Materials Inc

NYSE:SUM (2/10/2025, 8:24:42 PM)

After market: 52.55 +0.06 (+0.11%)

52.49

+0.04 (+0.08%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)04-29 2025-04-29/amc
Inst Owners65.2%
Inst Owner Change-18.25%
Ins OwnersN/A
Ins Owner Change0%
Market Cap9.23B
Analysts70.53
Price Target50.1 (-4.55%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.89%
Min EPS beat(2)6.65%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)19.52%
Min EPS beat(4)6.65%
Max EPS beat(4)48.07%
EPS beat(8)8
Avg EPS beat(8)18.03%
EPS beat(12)10
Avg EPS beat(12)12.07%
EPS beat(16)13
Avg EPS beat(16)13.68%
Revenue beat(2)0
Avg Revenue beat(2)-4.78%
Min Revenue beat(2)-5.63%
Max Revenue beat(2)-3.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-5.63%
Max Revenue beat(4)11.01%
Revenue beat(8)4
Avg Revenue beat(8)-0.21%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)9
Avg Revenue beat(16)2.46%
PT rev (1m)-6.66%
PT rev (3m)-7.35%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)1.5%
EPS NY rev (1m)1.99%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.02%
Valuation
Industry RankSector Rank
PE 32.81
Fwd PE 22.12
P/S 2.46
P/FCF 54.44
P/OCF 17.11
P/B 2.08
P/tB 4.16
EV/EBITDA 13.43
EPS(TTM)1.6
EY3.05%
EPS(NY)2.37
Fwd EY4.52%
FCF(TTM)0.96
FCFY1.84%
OCF(TTM)3.07
OCFY5.85%
SpS21.36
BVpS25.29
TBVpS12.63
PEG (NY)3.08
PEG (5Y)0.55
Profitability
Industry RankSector Rank
ROA 1.75%
ROE 3.31%
ROCE 6.03%
ROIC 4.51%
ROICexc 4.98%
ROICexgc 7.24%
OM 12.64%
PM (TTM) 3.92%
GM 29.81%
FCFM 4.51%
ROA(3y)5.18%
ROA(5y)4.04%
ROE(3y)11.46%
ROE(5y)9.43%
ROIC(3y)4.89%
ROIC(5y)4.65%
ROICexc(3y)5.44%
ROICexc(5y)5.16%
ROICexgc(3y)8.1%
ROICexgc(5y)7.79%
ROCE(3y)6.53%
ROCE(5y)6.21%
ROICexcg growth 3Y3.53%
ROICexcg growth 5Y5.58%
ROICexc growth 3Y6.61%
ROICexc growth 5Y7.42%
OM growth 3Y10.44%
OM growth 5Y8.05%
PM growth 3Y22.64%
PM growth 5Y46.57%
GM growth 3Y2.73%
GM growth 5Y-0.58%
F-Score6
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 16.66
Debt/EBITDA 3.33
Cap/Depr 100.52%
Cap/Sales 9.85%
Interest Coverage 3.17
Cash Conversion 64.03%
Profit Quality 115.02%
Current Ratio 3.1
Quick Ratio 2.48
Altman-Z 2.36
F-Score6
WACC8.78%
ROIC/WACC0.51
Cap/Depr(3y)109.47%
Cap/Depr(5y)97.16%
Cap/Sales(3y)9.87%
Cap/Sales(5y)9.04%
Profit Quality(3y)56.33%
Profit Quality(5y)121.42%
High Growth Momentum
Growth
EPS 1Y (TTM)1.27%
EPS 3Y24.17%
EPS 5Y59.94%
EPS Q2Q%-7.41%
EPS Next Y10.65%
EPS Next 2Y22.95%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue 1Y (TTM)49.48%
Revenue growth 3Y3.94%
Revenue growth 5Y4.51%
Sales Q2Q%47.35%
Revenue Next Year64.9%
Revenue Next 2Y33.36%
Revenue Next 3Y24.77%
Revenue Next 5YN/A
EBIT growth 1Y50.79%
EBIT growth 3Y14.79%
EBIT growth 5Y12.92%
EBIT Next Year197.56%
EBIT Next 3Y54.11%
EBIT Next 5YN/A
FCF growth 1Y203.77%
FCF growth 3Y-7.52%
FCF growth 5YN/A
OCF growth 1Y88.16%
OCF growth 3Y2.38%
OCF growth 5Y15.95%