Summit Materials Inc (SUM) Stock Fundamental Analysis
USA - NYSE:SUM - US86614U1007 - Common Stock
52.49 USD
+0.04 (+0.08%)
52.55 USD
+0.06 (+0.11%)
We assign a fundamental rating of 4 out of 10 to SUM. SUM was compared to 13 industry peers in the Construction Materials industry. SUM has an average financial health and profitability rating. SUM shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year SUM was profitable.
In the past year SUM had a positive cash flow from operations.
Each year in the past 5 years SUM has been profitable.
SUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.75%, SUM is doing worse than 91.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.31%, SUM is doing worse than 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.51%, SUM is doing worse than 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SUM is significantly below the industry average of 10.33%.
| Industry Rank | Sector 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%
1.3 Margins
SUM's Profit Margin of 3.92% is on the low side compared to the rest of the industry. SUM is outperformed by 83.33% of its industry peers.
In the last couple of years the Profit Margin of SUM has grown nicely.
SUM's Operating Margin of 12.64% is on the low side compared to the rest of the industry. SUM is outperformed by 66.67% of its industry peers.
In the last couple of years the Operating Margin of SUM has grown nicely.
The Gross Margin of SUM (29.81%) is comparable to the rest of the industry.
SUM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SUM is destroying value.
SUM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SUM has been increased compared to 5 years ago.
Compared to 1 year ago, SUM has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.36, SUM is in line with its industry, outperforming 41.67% of the companies in the same industry.
SUM has a debt to FCF ratio of 16.66. This is a negative value and a sign of low solvency as SUM would need 16.66 years to pay back of all of its debts.
SUM's Debt to FCF ratio of 16.66 is on the low side compared to the rest of the industry. SUM is outperformed by 75.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that SUM is somewhat dependend on debt financing.
SUM's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. SUM is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 16.66 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.51
WACC8.78%
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.
SUM has a Quick Ratio of 2.48. This indicates that SUM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.48, SUM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.27% over the past year.
SUM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.94% yearly.
The Revenue has grown by 49.48% in the past year. This is a very strong growth!
SUM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.
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
SUM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.33% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.81, SUM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SUM is valued a bit more expensive than 75.00% of the companies in the same industry.
SUM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.89.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of SUM.
Based on the Price/Forward Earnings ratio, SUM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SUM to the average of the S&P500 Index (22.99), we can say SUM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
SUM's Enterprise Value to EBITDA is on the same level as the industry average.
66.67% of the companies in the same industry are cheaper than SUM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.44 | ||
| EV/EBITDA | 13.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SUM's earnings are expected to grow with 25.33% in the coming years.
PEG (NY)3.08
PEG (5Y)0.55
EPS Next 2Y22.95%
EPS Next 3Y25.33%
5. Dividend
5.1 Amount
No dividends for SUM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.49
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners65.2%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap9.23B
Revenue(TTM)3.75B
Net Income(TTM)147.37M
Analysts70.53
Price Target50.1 (-4.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y3.53%
ROICexgc 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 Rank | Sector 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%
Summit Materials Inc / SUM FAQ
What is the ChartMill fundamental rating of Summit Materials Inc (SUM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SUM.
What is the valuation status for SUM stock?
ChartMill assigns a valuation rating of 2 / 10 to Summit Materials Inc (SUM). This can be considered as Overvalued.
How profitable is Summit Materials Inc (SUM) stock?
Summit Materials Inc (SUM) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SUM stock?
The Price/Earnings (PE) ratio for Summit Materials Inc (SUM) is 32.81 and the Price/Book (PB) ratio is 2.08.
How financially healthy is Summit Materials Inc?
The financial health rating of Summit Materials Inc (SUM) is 4 / 10.