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%)
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
In the past year SUM was profitable.
In the past year SUM had a positive cash flow from operations.
In the past 5 years SUM has always been profitable.
SUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUM has a Return On Assets of 1.75%. This is amonst the worse of the industry: SUM underperforms 91.67% of its industry peers.
The Return On Equity of SUM (3.31%) is worse than 91.67% of its industry peers.
SUM's Return On Invested Capital of 4.51% is on the low side compared to the rest of the industry. SUM is outperformed by 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 10.33%.
| 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 has a Profit Margin of 3.92%. This is amonst the worse of the industry: SUM underperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of SUM has grown nicely.
Looking at the Operating Margin, with a value of 12.64%, SUM is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of SUM has grown nicely.
SUM's Gross Margin of 29.81% is in line compared to the rest of the industry. SUM outperforms 58.33% of its industry peers.
In the last couple of years the Gross Margin of SUM has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUM 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.
SUM has a worse debt/assets ratio than last year.
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's Altman-Z score of 2.36 is in line compared to the rest of the industry. SUM outperforms 41.67% of its industry peers.
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.
The Debt to Equity ratio of SUM (0.63) is worse than 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
SUM has a Current Ratio of 3.10. This indicates that SUM is financially healthy and has no problem in meeting its short term obligations.
SUM has a better Current ratio (3.10) than 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
SUM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.27%.
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.
SUM shows a strong growth in Revenue. In the last year, the Revenue has grown by 49.48%.
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.
SUM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.77% yearly.
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
Based on the Price/Earnings ratio of 32.81, the valuation of SUM can be described as expensive.
Based on the Price/Earnings ratio, SUM is valued a bit more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. SUM is valued slightly more expensive when compared to this.
SUM is valuated rather expensively with a Price/Forward Earnings ratio of 22.12.
Based on the Price/Forward Earnings ratio, SUM is valued a bit cheaper than 66.67% of the companies in the same industry.
SUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
SUM's Enterprise Value to EBITDA ratio is in line with 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.