Summit Materials Inc (SUM) Stock Fundamental Analysis
NYSE:SUM - New York Stock Exchange, Inc. - US86614U1007 - Common Stock - Currency: USD
SUM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 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 is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year SUM was profitable.
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
With a Return On Assets value of 1.75%, SUM is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
The Return On Equity of SUM (3.31%) is worse than 91.67% of its industry peers.
The Return On Invested Capital of SUM (4.51%) is worse than 91.67% of its industry peers.
SUM had an Average Return On Invested Capital over the past 3 years of 4.89%. This is significantly below the industry average of 20.02%.
| 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 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.
In the last couple of years the Operating Margin of SUM has grown nicely.
SUM has a Gross Margin of 29.81%. This is comparable 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.
Compared to 5 years ago, SUM has more shares outstanding
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 has a Altman-Z score (2.36) which is in line with 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 Debt to FCF ratio of 16.66. This is in the lower half of the industry: SUM underperforms 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 worse Debt to Equity ratio (0.63) 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.
The Current ratio of SUM (3.10) is better than 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 Quick ratio of 2.48. This is amongst the best in 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.
SUM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.94% yearly.
Looking at the last year, SUM shows a very strong growth in Revenue. 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
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
SUM is valuated quite expensively with a Price/Earnings ratio of 32.81.
Based on the Price/Earnings ratio, SUM is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.22. SUM is around the same levels.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of SUM.
66.67% of the companies in the same industry are more expensive than SUM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, SUM is valued at the same level.
| 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.
SUM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SUM is more expensive than 66.67% of the companies in the same industry.
| 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
SUM does not give a dividend.
| 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-1.56%
Ins OwnersN/A
Ins Owner Change-1.08%
Market Cap9.23B
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
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%
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 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%