Summit Materials Inc (SUM) Stock Fundamental Analysis
NYSE:SUM - New York Stock Exchange, Inc. - US86614U1007 - Common Stock - Currency: USD
Overall SUM gets a fundamental rating of 4 out of 10. We evaluated SUM against 13 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 shows excellent growth, but is valued quite expensive already.
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
SUM has a worse Return On Assets (1.75%) than 91.67% of its industry peers.
SUM's Return On Equity of 3.31% is on the low side compared to the rest of the industry. SUM is outperformed by 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 10.96%.
| 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 has a Operating Margin of 12.64%. This is in the lower half of the industry: SUM underperforms 66.67% of its industry peers.
SUM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.81%, SUM perfoms like the industry average, outperforming 58.33% 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 | 12.64% | ||
| 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.
The number of shares outstanding for SUM has been increased compared to 1 year ago.
SUM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SUM is higher compared to a year ago.
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.
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.
Looking at the Debt to FCF ratio, with a value of 16.66, SUM is doing worse than 75.00% of the companies in the same industry.
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
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.
The Revenue has grown by 49.48% in the past year. This is a very strong growth!
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
Based on estimates for the next years, SUM will show a very strong growth in Earnings Per Share. The EPS will grow by 25.33% on average per year.
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.
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.
SUM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.12, the valuation of SUM can be described as rather expensive.
SUM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SUM is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.11, SUM is valued a bit cheaper.
| 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 an expensive valuation of the company.
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-0.04%
Ins OwnersN/A
Ins Owner Change-1.26%
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%