SUMMIT MATERIALS INC -CL A (SUM)
US86614U1007 - Common Stock
Overall SUM gets a fundamental rating of 4 out of 10. We evaluated SUM against 12 industry peers in the Construction Materials industry. There are concerns on the financial health of SUM while its profitability can be described as average. SUM is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
SUM had positive earnings in the past year.
SUM had a positive operating cash flow in the past year.
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
The Return On Assets of SUM (3.07%) is worse than 66.67% of its industry peers.
SUM has a Return On Equity of 5.92%. This is in the lower half of the industry: SUM underperforms 66.67% of its industry peers.
The Return On Invested Capital of SUM (3.54%) is worse than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SUM is significantly below the industry average of 9.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 5.92% | ||
| ROIC | 3.54% |
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
The Profit Margin of SUM (8.35%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SUM has grown nicely.
SUM has a Operating Margin (12.03%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SUM has grown nicely.
With a Gross Margin value of 28.66%, SUM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SUM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.03% | ||
| PM (TTM) | 8.35% | ||
| GM | 28.66% |
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.
Compared to 1 year ago, SUM has more shares outstanding
The number of shares outstanding for SUM has been increased compared to 5 years ago.
SUM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 indicates that SUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SUM has a worse Altman-Z score (1.91) than 66.67% of its industry peers.
SUM has a debt to FCF ratio of 22.29. This is a negative value and a sign of low solvency as SUM would need 22.29 years to pay back of all of its debts.
SUM's Debt to FCF ratio of 22.29 is on the low side compared to the rest of the industry. SUM is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that SUM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, SUM is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 22.29 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.37
WACC9.44%
2.3 Liquidity
SUM has a Current Ratio of 2.58. This indicates that SUM is financially healthy and has no problem in meeting its short term obligations.
SUM has a Current ratio (2.58) which is in line with its industry peers.
SUM has a Quick Ratio of 1.93. This is a normal value and indicates that SUM is financially healthy and should not expect problems in meeting its short term obligations.
SUM has a better Quick ratio (1.93) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.85% 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
The Revenue has grown by 23.16% in the past year. This is a very strong growth!
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)26.85%
EPS 3Y24.17%
EPS 5Y59.94%
EPS growth Q2Q53.85%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y3.94%
Revenue growth 5Y4.51%
Revenue growth Q2Q84.89%
3.2 Future
SUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.75% yearly.
SUM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.33% yearly.
EPS Next Y29.91%
EPS Next 2Y25.2%
EPS Next 3Y19.75%
EPS Next 5YN/A
Revenue Next Year78.82%
Revenue Next 2Y38.08%
Revenue Next 3Y25.33%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 23.47, which indicates a rather expensive current valuation of SUM.
SUM's Price/Earnings is on the same level as the industry average.
SUM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.83.
A Price/Forward Earnings ratio of 16.31 indicates a correct valuation of SUM.
Based on the Price/Forward Earnings ratio, SUM is valued a bit cheaper than 75.00% of the companies in the same industry.
SUM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than SUM, based on the Enterprise Value to EBITDA ratio.
SUM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.71 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SUM's earnings are expected to grow with 19.75% in the coming years.
PEG (NY)0.78
PEG (5Y)0.39
EPS Next 2Y25.2%
EPS Next 3Y19.75%
5. Dividend
5.1 Amount
SUM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SUMMIT MATERIALS INC -CL A
NYSE:SUM (5/16/2024, 7:19:20 PM)
After market: 40.13 0 (0%)40.13
-2 (-4.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 16.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.78
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 5.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.03% | ||
| PM (TTM) | 8.35% | ||
| GM | 28.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.85%
EPS 3Y24.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.16%
Revenue growth 3Y3.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y