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Summit Materials

NYSE:SUM
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SUM
NYSE
$2B
Imp Market Cap
  1. Home
  2. US
  3. Materials
Company description

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other markets. The last earnings update was 76 days ago. More info.


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SUM Share Price and Events
7 Day Returns
0.1%
NYSE:SUM
0.5%
US Basic Materials
-0.8%
US Market
1 Year Returns
-43.5%
NYSE:SUM
-3.7%
US Basic Materials
7%
US Market
SUM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Summit Materials (SUM) 0.1% 0.3% 12% -43.5% -22.6% -
US Basic Materials 0.5% 9.8% 17.1% -3.7% 13.1% 65.8%
US Market -0.8% 2.7% 7.5% 7% 37.9% 47%
1 Year Return vs Industry and Market
  • SUM underperformed the Basic Materials industry which returned -3.7% over the past year.
  • SUM underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
SUM
Industry
5yr Volatility vs Market

Value

 Is Summit Materials undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Summit Materials to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Summit Materials.

NYSE:SUM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SUM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.902 (1 + (1- 21%) (100.33%))
1.414
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.414 * 5.96%)
11.16%

Discounted Cash Flow Calculation for NYSE:SUM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Summit Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SUM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.16%)
2019 141.43 Analyst x5 127.23
2020 175.61 Analyst x6 142.13
2021 202.43 Analyst x2 147.39
2022 244.45 Analyst x1 160.12
2023 272.69 Analyst x1 160.69
2024 295.78 Est @ 8.47% 156.80
2025 315.74 Est @ 6.75% 150.58
2026 333.24 Est @ 5.54% 142.98
2027 348.90 Est @ 4.7% 134.67
2028 363.23 Est @ 4.11% 126.13
Present value of next 10 years cash flows $1,448.73
NYSE:SUM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $363.23 × (1 + 2.73%) ÷ (11.16% – 2.73%)
$4,428.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,428.07 ÷ (1 + 11.16%)10
$1,537.63
NYSE:SUM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,448.73 + $1,537.63
$2,986.36
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,986.36 / 115.48
$25.86
NYSE:SUM Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.86
Current discount Discount to share price of $15.94
= -1 x ($15.94 - $25.86) / $25.86
38.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Summit Materials is available for.
Intrinsic value
38%
Share price is $15.94 vs Future cash flow value of $25.86
Current Discount Checks
For Summit Materials to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Summit Materials's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Summit Materials's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Summit Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Summit Materials's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SUM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in USD $0.30
NYSE:SUM Share Price ** NYSE (2019-04-22) in USD $15.94
United States of America Basic Materials Industry PE Ratio Median Figure of 11 Publicly-Listed Basic Materials Companies 25.6x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Summit Materials.

NYSE:SUM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SUM Share Price ÷ EPS (both in USD)

= 15.94 ÷ 0.30

52.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Summit Materials is overvalued based on earnings compared to the US Basic Materials industry average.
  • Summit Materials is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Summit Materials's expected growth come at a high price?
Raw Data
NYSE:SUM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 52.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
43.5%per year
United States of America Basic Materials Industry PEG Ratio Median Figure of 7 Publicly-Listed Basic Materials Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:SUM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 52.36x ÷ 43.5%

1.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Summit Materials is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Summit Materials's assets?
Raw Data
NYSE:SUM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in USD $11.89
NYSE:SUM Share Price * NYSE (2019-04-22) in USD $15.94
United States of America Basic Materials Industry PB Ratio Median Figure of 13 Publicly-Listed Basic Materials Companies 2.05x
United States of America Market PB Ratio Median Figure of 5,186 Publicly-Listed Companies 1.91x
NYSE:SUM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SUM Share Price ÷ Book Value per Share (both in USD)

= 15.94 ÷ 11.89

1.34x

* Primary Listing of Summit Materials.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Summit Materials is good value based on assets compared to the US Basic Materials industry average.
X
Value checks
We assess Summit Materials's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Summit Materials has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Summit Materials expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
43.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Summit Materials expected to grow at an attractive rate?
  • Summit Materials's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Summit Materials's earnings growth is expected to exceed the United States of America market average.
  • Summit Materials's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SUM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SUM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 43.5%
NYSE:SUM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.4%
United States of America Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
United States of America Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SUM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SUM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,403 1
2022-12-31 2,292 1
2021-12-31 2,212 366 173 2
2020-12-31 2,150 346 137 8
2019-12-31 2,043 292 92 8
2018-12-31 1,924 244 59 8
NYSE:SUM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-29 2,101 209 34
2018-09-29 2,100 230 96
2018-06-30 2,040 247 106
2018-03-31 1,963 286 121
2017-12-30 1,933 292 122
2017-09-30 1,866 293 79
2017-07-01 1,761 283 42
2017-04-01 1,682 241 5
2016-12-31 1,626 245 37
2016-10-01 1,605 201 59
2016-07-02 1,547 152 29
2016-04-02 1,467 118 14
2016-01-02 1,432 98 25

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Summit Materials's earnings are expected to grow significantly at over 20% yearly.
  • Summit Materials's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SUM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Summit Materials Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SUM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.64 1.64 1.64 1.00
2022-12-31 1.44 1.44 1.44 1.00
2021-12-31 1.42 1.87 1.13 3.00
2020-12-31 1.18 1.60 0.91 10.00
2019-12-31 0.81 1.07 0.63 11.00
2018-12-31 0.50 0.54 0.45 5.00
NYSE:SUM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-29 0.30
2018-09-29 0.87
2018-06-30 0.96
2018-03-31 1.10
2017-12-30 1.12
2017-09-30 0.76
2017-07-01 0.44
2017-04-01 0.06
2016-12-31 0.52
2016-10-01 0.94
2016-07-02 0.52
2016-04-02 0.31
2016-01-02 0.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Summit Materials is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Summit Materials's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Summit Materials has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Summit Materials performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Summit Materials's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Summit Materials has delivered over 20% year on year earnings growth in the past 5 years.
  • Summit Materials's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Summit Materials's 1-year earnings growth is negative, it can't be compared to the US Basic Materials industry average.
Earnings and Revenue History
Summit Materials's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Summit Materials Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SUM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 2,101.00 33.91 253.61
2018-09-29 2,100.00 96.08 257.92
2018-06-30 2,039.52 106.05 257.63
2018-03-31 1,962.72 120.55 254.06
2017-12-30 1,932.58 121.83 242.67
2017-09-30 1,865.52 78.53 234.29
2017-07-01 1,760.78 42.09 239.21
2017-04-01 1,681.96 5.46 256.61
2016-12-31 1,626.06 36.78 243.51
2016-10-01 1,604.55 58.84 198.74
2016-07-02 1,547.02 28.67 191.68
2016-04-02 1,466.69 14.34 155.91
2016-01-02 1,432.30 25.30 163.27
2015-09-26 1,364.92 -4.95 194.34
2015-06-27 1,287.78 -19.61 172.82
2015-03-28 1,247.13 -19.02 154.18
2014-12-27 1,204.23 -8.85 150.73
2014-09-27 1,108.41 -72.55 140.65
2014-06-28 1,029.92 -52.22 138.96
2014-03-29 886.46 -79.05 140.79
2013-12-28 916.20 -106.26 142.00
2012-12-29 926.25 -48.95 127.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Summit Materials has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Summit Materials used its assets less efficiently than the US Basic Materials industry average last year based on Return on Assets.
  • Summit Materials's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Summit Materials's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Summit Materials has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Summit Materials's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Summit Materials's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Summit Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Summit Materials's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Summit Materials's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Summit Materials Company Filings, last reported 3 months ago.

NYSE:SUM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 1,342.15 1,863.01 128.51
2018-09-29 1,358.87 1,827.91 64.93
2018-06-30 1,277.77 1,831.12 50.40
2018-03-31 1,235.35 1,837.62 178.29
2017-12-30 1,271.72 1,851.27 383.56
2017-09-30 1,217.36 1,834.02 287.08
2017-07-01 1,112.95 1,834.05 353.06
2017-04-01 1,047.72 1,536.95 156.11
2016-12-31 860.04 1,560.22 143.39
2016-10-01 845.74 1,534.64 31.64
2016-07-02 778.26 1,549.83 9.17
2016-04-02 729.66 1,536.69 92.24
2016-01-02 767.86 1,324.92 186.41
2015-09-26 722.19 1,232.26 18.99
2015-06-27 618.89 845.65 12.57
2015-03-28 628.27 1,080.62 314.98
2014-12-27 320.72 1,080.19 13.22
2014-09-27 325.90 1,108.52 10.00
2014-06-28 298.94 1,021.04 24.07
2014-03-29 311.58 691.06 18.18
2013-12-28 311.58 691.06 18.18
2012-12-29 408.54 639.84 30.70
  • Summit Materials's level of debt (138.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (221.8% vs 138.8% today).
  • Debt is not well covered by operating cash flow (11.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Summit Materials's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Summit Materials has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Summit Materials's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Summit Materials dividends. Estimated to be 0% next year.
If you bought $2,000 of Summit Materials shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Summit Materials's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Summit Materials's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SUM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SUM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00
2018-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Summit Materials has not reported any payouts.
  • Unable to verify if Summit Materials's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Summit Materials's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Summit Materials has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Summit Materials's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Summit Materials's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Summit Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Summit Materials has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Summit Materials's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Hill
COMPENSATION $4,474,870
AGE 62
TENURE AS CEO 4.6 years
CEO Bio

Mr. Thomas W. Hill, also known as Tom, B.A., serves as President and Chief Executive Officer of Summit Materials, LLC and Summit Materials, Inc. He is Founder of Summit Materials, LLC. From 2006 to 2008, he was the Chief Executive Officer of Oldcastle Inc. - the North American arm of CRH, plc, one of the world's leading building materials companies based in Dublin, Ireland. Mr. Hill served on the CRH Board of Directors from 2002 to 2008. From 1992 to 2006, he ran the Materials division of Oldcastle. Mr. Hill serves as a Director at Summit Materials Inc., and Summit Materials LLC since August 2009. Mr. Hill also held a variety of leadership roles in the transportation industry. He served as Chairman of the American Road and Transportation Builders Association from 2002 to 2004, during congressional consideration of the multi-year transportation bill "SAFETEA-LU." He worked to develop legislative proposals to address the transportation infrastructure needs of the country, convened industry meetings to develop a consensus position and testified before the Congress on the need for increased Federal investment in transportation infrastructure. Mr. Hill has been Treasurer of both the National Asphalt Pavement Association and the National Stone Association and he remains active with ARTBA's Executive Committee. Currently he is serving as Vice-Chairman of ARTBA's Highway Reauthorization task force. Mr. Hill received his MBA from Trinity College in Dublin, Ireland in 1980. He received a Bachelor of Arts in Economics and History from Duke University in 1978.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Summit Materials management team in years:

5
Average Tenure
53
Average Age
  • The average tenure for the Summit Materials management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Tom Hill

TITLE
Founder
COMPENSATION
$4M
AGE
62
TENURE
4.6 yrs

Brian Harris

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
62
TENURE
5.5 yrs

Michael Brady

TITLE
Executive VP & Chief Business Development Officer
COMPENSATION
$1M
AGE
50
TENURE
10 yrs

M. Evans

TITLE
Executive VP & President of West Division
COMPENSATION
$1M
AGE
47

Karl Watson

TITLE
Executive VP & COO
AGE
53
TENURE
1.3 yrs

Noel Ryan

TITLE
Vice President of Investor Relations
TENURE
2.5 yrs

Anne Benedict

TITLE
Executive VP
AGE
45

Tom Beck

TITLE
Executive VP & Cement Division President
AGE
61
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the Summit Materials board of directors in years:

3.3
Average Tenure
60
Average Age
  • The tenure for the Summit Materials board of directors is about average.
Board of Directors

Howard Lance

TITLE
Chairman of the Board
COMPENSATION
$350K
AGE
62
TENURE
6.2 yrs

Tom Hill

TITLE
Founder
COMPENSATION
$4M
AGE
62
TENURE
9.7 yrs

Ted Gardner

TITLE
Director
COMPENSATION
$200K
AGE
60
TENURE
9.7 yrs

John Murphy

TITLE
Director
COMPENSATION
$215K
AGE
68
TENURE
7.2 yrs

Steven Wunning

TITLE
Director
COMPENSATION
$200K
AGE
67
TENURE
2.7 yrs

Anne Wade

TITLE
Director
COMPENSATION
$200K
AGE
46
TENURE
3.3 yrs

Joseph Cantie

TITLE
Director
COMPENSATION
$200K
AGE
54
TENURE
2.9 yrs

Anne Cooney

TITLE
Director
AGE
57
TENURE
0.7 yrs

Sue Ellerbusch

TITLE
Director
AGE
50
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Summit Materials insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 19 Buy Thomas Hill Individual 15. Feb 19 15. Feb 19 31,250 $16.25 $507,813
11. Dec 18 Buy Brian Harris Individual 04. Dec 18 10. Dec 18 4,000 $13.38 $52,760
21. Nov 18 Buy Thomas Beck Individual 19. Nov 18 19. Nov 18 10,000 $13.97 $139,700
13. Nov 18 Buy Brian Harris Individual 08. Nov 18 08. Nov 18 5,000 $14.12 $70,600
07. Aug 18 Buy Karl Watson Individual 03. Aug 18 03. Aug 18 35,500 $21.19 $750,823
X
Management checks
We assess Summit Materials's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Summit Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell Summit Materials, Inc. (NYSE:SUM) Because Of Its P/E Ratio?

We'll apply a basic P/E ratio analysis to Summit Materials, Inc.'s (NYSE:SUM), to help you decide if the stock is worth further research. … Based on the last twelve months, Summit Materials's P/E ratio is 51.94. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why We’re Not Impressed By Summit Materials, Inc.’s (NYSE:SUM) 4.6% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Introducing Summit Materials, The Stock That Dropped 44% In The Last Year

(NYSE:SUM) shareholders should be happy to see the share price up 20% in the last quarter. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … This fall in the EPS is significantly worse than the 44% the share price fall.

Simply Wall St -

Summit Materials, Inc. (NYSE:SUM): What Does Its Beta Value Mean For Your Portfolio?

(NYSE:SUM), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Are Summit Materials, Inc.'s (NYSE:SUM) Interest Costs Too High?

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Investors are always looking for growth in small-cap stocks like Summit Materials, Inc. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Is Now An Opportune Moment To Examine Summit Materials, Inc. (NYSE:SUM)?

(NYSE:SUM), which is in the basic materials business, and is based in United States,. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Summit Materials’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Here's What Summit Materials, Inc.'s (NYSE:SUM) P/E Ratio Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Summit Materials has a price to earnings ratio of 13.45, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

One Factor To Consider Before Investing In Summit Materials, Inc. (NYSE:SUM)

I’ve analysed below, the health and outlook of Summit Materials’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash Summit Materials has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … I will be analysing Summit Materials’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

A Look At The Intrinsic Value Of Summit Materials Inc (NYSE:SUM)

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Please also note that this article was written in November 2018 so be sure check out the updated calculation by following the link below

Simply Wall St -

Does Summit Materials Inc's (NYSE:SUM) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … According to our data, Summit Materials Inc has a market capitalization of US$1.6b, and pays its CEO total annual compensation worth US$4.5m. … So Tom Hill receives a similar amount to the median CEO pay, amongst the companies we looked at.

Simply Wall St -

Company Info

Description

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other markets. It operates in three segments: West, East, and Cement. The company’s products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides paving and related services primarily comprising asphalt paving services to the private and public infrastructure sectors. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminal. It has operations in the United States; and British Columbia, Canada. The company was founded in 2009 and is headquartered in Denver, Colorado.

Details
Name: Summit Materials, Inc.
SUM
Exchange: NYSE
Founded: 2009
$1,856,926,102
$1,786,275,660
115,480,479
Website: http://summit-materials.com
Address: Summit Materials, Inc.
1550 Wynkoop Street,
Third Floor,
Denver,
Colorado, 80202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SUM Class A Common Stock New York Stock Exchange US USD 12. Mar 2015
DB 7SU Class A Common Stock Deutsche Boerse AG DE EUR 12. Mar 2015
LSE 0LAI Class A Common Stock London Stock Exchange GB USD 12. Mar 2015
Number of employees
Current staff
Staff numbers
6,000
Summit Materials employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 00:57
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/21
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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 here.