Summit Materials, Inc.

DB:7SU Stock Report

Market Cap: €8.9b

Summit Materials Valuation

Is 7SU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7SU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€85.16
Fair Value
41.8% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: 7SU (€49.6) is trading below our estimate of fair value (€85.16)

Significantly Below Fair Value: 7SU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7SU?

Key metric: As 7SU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7SU. This is calculated by dividing 7SU's market cap by their current earnings.
What is 7SU's PE Ratio?
PE Ratio62.6x
EarningsUS$147.37m
Market CapUS$9.20b

Price to Earnings Ratio vs Peers

How does 7SU's PE Ratio compare to its peers?

The above table shows the PE ratio for 7SU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
HEI Heidelberg Materials
14x9.6%€25.6b
STO3 Sto SE KGaA
10.8x3.5%€710.7m
EVK Evonik Industries
38.7x33.0%€8.9b
SY1 Symrise
34.3x14.4%€13.6b
7SU Summit Materials
62.6x42.5%€9.2b

Price-To-Earnings vs Peers: 7SU is expensive based on its Price-To-Earnings Ratio (62.6x) compared to the peer average (24.5x).

Price to Earnings Ratio vs Industry

How does 7SU's PE Ratio compare vs other companies in the European Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
7SU 62.6xIndustry Avg. 14.0xNo. of Companies9PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7SU is expensive based on its Price-To-Earnings Ratio (62.6x) compared to the European Basic Materials industry average (13.7x).

Price to Earnings Ratio vs Fair Ratio

What is 7SU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7SU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.6x
Fair PE Ratio39.4x

Price-To-Earnings vs Fair Ratio: 7SU is expensive based on its Price-To-Earnings Ratio (62.6x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7SU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€49.60
€49.50
-0.2%
5.9%€53.92€41.64n/a13
Jan ’26€47.60
€49.17
+3.3%
6.3%€53.29€41.15n/a13
Dec ’25€47.60
€49.73
+4.5%
7.0%€55.36€41.27n/a13
Nov ’25€42.80
€47.14
+10.1%
11.2%€55.37€37.83n/a15
Oct ’25€34.40
€43.91
+27.7%
8.6%€52.40€37.04n/a16
Sep ’25€35.40
€43.77
+23.6%
8.8%€51.96€36.73n/a16
Aug ’25€38.00
€44.33
+16.7%
10.3%€54.86€37.49n/a16
Jul ’25€33.40
€47.05
+40.9%
8.2%€55.99€41.06n/a16
Jun ’25€35.60
€46.82
+31.5%
9.0%€55.31€40.56n/a16
May ’25€36.80
€46.56
+26.5%
10.9%€56.12€39.28n/a14
Apr ’25€40.00
€44.09
+10.2%
9.2%€55.52€38.87n/a14
Mar ’25€38.80
€42.71
+10.1%
11.1%€55.45€36.04n/a14
Feb ’25€33.00
€40.27
+22.0%
7.7%€46.00€34.96€49.6013
Jan ’25€34.40
€39.36
+14.4%
7.5%€45.80€35.72€47.6014
Dec ’24€31.20
€39.92
+27.9%
6.8%€46.69€36.42€47.6014
Nov ’24€30.60
€40.33
+31.8%
7.2%€47.32€35.96€42.8013
Oct ’24€29.20
€40.61
+39.1%
8.5%€46.97€34.75€34.4013
Sep ’24€35.00
€40.20
+14.8%
8.1%€46.03€34.06€35.4015
Aug ’24€32.40
€36.04
+11.2%
12.0%€45.20€28.02€38.0015
Jul ’24€34.60
€34.81
+0.6%
13.0%€46.01€28.52€33.4015
Jun ’24€29.00
€34.20
+17.9%
13.0%€45.61€28.28€35.6016
May ’24€23.80
€32.48
+36.5%
16.3%€45.28€25.35€36.8016
Apr ’24€25.40
€33.86
+33.3%
15.0%€46.10€26.74€40.0015
Mar ’24€27.40
€34.39
+25.5%
15.0%€47.16€26.41€38.8016
Feb ’24€29.60
€33.41
+12.9%
16.2%€45.15€25.71€33.0016
Analyst Price Target
Consensus Narrative from 13 Analysts
€48.57
Fair Value
2.1% overvalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 17:32
End of Day Share Price 2025/02/06 00:00
Earnings2024/09/28
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Summit Materials, Inc. is covered by 29 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam SeidenBarclays
Adam ThalhimerBB&T Capital Markets
Daniel WangBerenberg