Summit Materials Inc (SUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SUM - US86614U1007 - Common Stock
52.49 USD
+0.04 (+0.08%)
52.55 USD
+0.06 (+0.11%)
SUM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. SUM has an average financial health and profitability rating. SUM is valued quite expensive, but it does show an excellent growth.
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.
SUM had a positive operating cash flow in each of the past 5 years.
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.
With a Return On Equity value of 3.31%, SUM is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
SUM has a Return On Invested Capital of 4.51%. This is amonst the worse of the industry: SUM underperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SUM is below the industry average of 9.37%.
| 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.
The Operating Margin of SUM (12.64%) is worse than 66.67% of its industry peers.
In the last couple of years the Operating Margin of SUM has grown nicely.
SUM has a Gross Margin (29.81%) which is in line with its industry peers.
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.
Compared to 1 year ago, SUM has more shares outstanding
Compared to 1 year ago, SUM has a worse debt to assets ratio.
2.2 Solvency
SUM has an Altman-Z score of 2.36. This is not the best score and indicates that SUM is in the grey zone with still only limited risk for bankruptcy at the moment.
SUM has a Altman-Z score of 2.36. This is comparable to the rest of the industry: SUM outperforms 41.67% of its industry peers.
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 has a worse Debt to FCF ratio (16.66) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that 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 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.
SUM's Quick ratio of 2.48 is amongst the best of the industry. SUM outperforms 91.67% of its industry peers.
| 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.
Measured over the past years, SUM shows a very strong growth in Earnings Per Share. The EPS has been growing by 59.94% on average per year.
Looking at the last year, SUM shows a very strong growth in Revenue. The Revenue has grown by 49.48%.
Measured over the past years, SUM shows a small growth in Revenue. The Revenue has been growing by 4.51% on average per year.
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
The Earnings Per Share is expected to grow by 25.33% on average over the next years. This is a very strong growth
Based on estimates for the next years, SUM will show a very strong growth in Revenue. The Revenue will grow by 24.77% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.81, SUM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SUM indicates a slightly more expensive valuation: SUM is more expensive than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SUM to the average of the S&P500 Index (27.25), we can say SUM is valued slightly more expensively.
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 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 (23.98), 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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SUM is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| 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 SUM does not grow enough to justify the current Price/Earnings ratio.
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%
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 Change-0.84%
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.
Can you provide the valuation status for Summit Materials Inc?
ChartMill assigns a valuation rating of 2 / 10 to Summit Materials Inc (SUM). This can be considered as Overvalued.
What is the profitability of SUM stock?
Summit Materials Inc (SUM) has a profitability rating of 4 / 10.
What is the earnings growth outlook for Summit Materials Inc?
The Earnings per Share (EPS) of Summit Materials Inc (SUM) is expected to grow by 10.65% in the next year.