Summit Materials, Inc.

LSE:0LAI Stock Report

Market Cap: US$9.2b

Summit Materials Valuation

Is 0LAI 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 0LAI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$86.79
Fair Value
39.7% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: 0LAI ($52.34) is trading below our estimate of fair value ($86.79)

Significantly Below Fair Value: 0LAI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LAI?

Key metric: As 0LAI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LAI. This is calculated by dividing 0LAI's market cap by their current earnings.
What is 0LAI's PE Ratio?
PE Ratio62.6x
EarningsUS$147.37m
Market CapUS$9.20b

Price to Earnings Ratio vs Peers

How does 0LAI's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LAI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.6x
RHIM RHI Magnesita
11x10.9%UK£1.7b
BREE Breedon Group
15.9x14.2%UK£1.5b
MSLH Marshalls
30.4x23.7%UK£656.8m
IBST Ibstock
92.9x37.5%UK£673.8m
0LAI Summit Materials
62.6x42.5%US$9.2b

Price-To-Earnings vs Peers: 0LAI is expensive based on its Price-To-Earnings Ratio (62.6x) compared to the peer average (38x).

Price to Earnings Ratio vs Industry

How does 0LAI's PE Ratio compare vs other companies in the European Basic Materials Industry?

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

Price-To-Earnings vs Industry: 0LAI 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 0LAI'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.

0LAI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.6x
Fair PE Ratio33.1x

Price-To-Earnings vs Fair Ratio: 0LAI is expensive based on its Price-To-Earnings Ratio (62.6x) compared to the estimated Fair Price-To-Earnings Ratio (33.1x).

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 0LAI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$52.34
US$51.40
-1.8%
5.9%US$56.00US$43.24n/a13
Jan ’26US$50.64
US$51.67
+2.0%
6.3%US$56.00US$43.24n/a13
Dec ’25US$51.00
US$52.10
+2.1%
7.0%US$58.00US$43.24n/a13
Nov ’25US$47.76
US$51.08
+7.0%
11.2%US$60.00US$41.00n/a15
Oct ’25US$38.18
US$48.61
+27.3%
8.6%US$58.00US$41.00n/a16
Sep ’25US$39.99
US$48.86
+22.2%
8.8%US$58.00US$41.00n/a16
Aug ’25US$40.39
US$48.48
+20.0%
10.3%US$60.00US$41.00n/a16
Jul ’25US$35.86
US$50.42
+40.6%
8.2%US$60.00US$44.00n/a16
Jun ’25US$38.14
US$50.80
+33.2%
9.0%US$60.00US$44.00n/a16
May ’25US$38.82
US$49.79
+28.3%
10.9%US$60.00US$42.00n/a14
Apr ’25US$44.41
US$47.64
+7.3%
9.2%US$60.00US$42.00n/a14
Mar ’25US$43.47
US$46.21
+6.3%
11.1%US$60.00US$39.00n/a14
Feb ’25US$37.15
US$43.77
+17.8%
7.7%US$50.00US$38.00US$52.3613
Jan ’25US$38.62
US$42.96
+11.2%
7.5%US$50.00US$39.00US$50.6414
Dec ’24US$35.62
US$42.75
+20.0%
6.8%US$50.00US$39.00US$51.0014
Nov ’24US$33.81
US$42.62
+26.0%
7.2%US$50.00US$38.00US$47.7613
Oct ’24US$30.80
US$43.23
+40.4%
8.5%US$50.00US$37.00US$38.1813
Sep ’24US$37.43
US$43.67
+16.7%
8.1%US$50.00US$37.00US$39.9915
Aug ’24US$36.22
US$39.87
+10.1%
12.0%US$50.00US$31.00US$40.3915
Jul ’24US$35.01
US$37.83
+8.1%
13.0%US$50.00US$31.00US$35.8615
Jun ’24US$31.81
US$37.50
+17.9%
13.0%US$50.00US$31.00US$38.1416
May ’24US$27.47
US$35.88
+30.6%
16.3%US$50.00US$28.00US$38.8216
Apr ’24n/a
US$36.73
0%
15.0%US$50.00US$29.00US$44.4115
Mar ’24US$29.76
US$36.46
+22.5%
15.0%US$50.00US$28.00US$43.4716
Feb ’24US$32.62
US$36.38
+11.5%
16.2%US$49.16US$28.00US$37.1516
Analyst Price Target
Consensus Narrative from 13 Analysts
US$51.26
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 19:39
End of Day Share Price 2025/02/05 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