NYSE:SUM

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

How has Summit Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.3%

SUM

20.0%

US Basic Materials

10.5%

US Market


1 Year Return

-27.0%

SUM

-17.6%

US Basic Materials

-11.5%

US Market

Return vs Industry: SUM underperformed the US Basic Materials industry which returned -17.6% over the past year.

Return vs Market: SUM underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

SUMIndustryMarket
7 Day32.3%20.0%10.5%
30 Day-41.3%-22.7%-15.4%
90 Day-51.4%-34.7%-21.4%
1 Year-27.0%-27.0%-16.9%-17.6%-9.6%-11.5%
3 Year-52.4%-52.4%-23.2%-25.1%12.6%5.4%
5 Year-44.8%-44.8%13.9%9.6%32.8%18.1%

Price Volatility Vs. Market

How volatile is Summit Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Summit Materials undervalued compared to its fair value and its price relative to the market?

37.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUM ($11.59) is trading below our estimate of fair value ($18.57)

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


Price To Earnings Ratio

PE vs Industry: SUM is poor value based on its PE Ratio (22x) compared to the Basic Materials industry average (13.9x).

PE vs Market: SUM is poor value based on its PE Ratio (22x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SUM is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SUM is good value based on its PB Ratio (0.9x) compared to the US Basic Materials industry average (1.2x).


Next Steps

Future Growth

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

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUM's forecast earnings growth (25.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SUM's earnings (25.5% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUM's revenue (0.03% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SUM's revenue (0.03% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUM's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Summit Materials performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUM has a large one-off loss of $29.1M impacting its December 28 2019 financial results.

Growing Profit Margin: SUM's current net profit margins (2.7%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: SUM has become profitable over the past 5 years, growing earnings by 30.4% per year.

Accelerating Growth: SUM's earnings growth over the past year (70.8%) exceeds its 5-year average (30.4% per year).

Earnings vs Industry: SUM earnings growth over the past year (70.8%) exceeded the Basic Materials industry 32.4%.


Return on Equity

High ROE: SUM's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Summit Materials's financial position?


Financial Position Analysis

Short Term Liabilities: SUM's short term assets ($796.3M) exceed its short term liabilities ($299.3M).

Long Term Liabilities: SUM's short term assets ($796.3M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: SUM's debt to equity ratio (128.7%) is considered high.

Reducing Debt: SUM's debt to equity ratio has reduced from 320.3% to 128.7% over the past 5 years.

Debt Coverage: SUM's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: SUM's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: SUM has a high level of physical assets or inventory.

Debt Coverage by Assets: SUM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SUM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SUM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SUM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Tom Hill (63yo)

5.5s

Tenure

US$4,674,005

Compensation

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, h ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.67M) is about average for companies of similar size in the US market ($USD4.54M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Hill
Founder5.5yrsUS$4.67m0.20% $3.1m
Brian Harris
Executive VP & CFO6.42yrsUS$2.10m0.093% $1.4m
Michael Brady
Executive VP & Chief Business Development Officer10.92yrsUS$1.28m0.019% $292.1k
M. Evans
no dataUS$1.10m0.0056% $83.8k
Karli Anderson
Vice President of Investor Relations0.58yrno datano data
Anne Benedict
Executive VPno datano data0.016% $245.9k
Thomas Beck
Executive VP & Cement Division President7.17yrsno data0.016% $234.7k

6.4yrs

Average Tenure

51yo

Average Age

Experienced Management: SUM's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Hill
Founder5.5yrsUS$4.67m0.20% $3.1m
Ted Gardner
Independent Director10.58yrsUS$226.33k0.020% $302.9k
Steven Wunning
Independent Director3.58yrsUS$226.33k0.018% $278.8k
Howard Lance
Chairman of the Board7.08yrsUS$376.33k0.020% $302.9k
Joseph Cantie
Independent Director3.83yrsUS$226.33k0.018% $279.1k
Anne Cooney
Independent Director1.58yrsUS$149.22k0.012% $176.9k
Susan Ellerbusch
Independent Director1.58yrsUS$149.22k0.012% $176.9k
Anne Wade
Independent Director4.17yrsUS$226.33k0.020% $302.9k
John Murphy
Independent Director8.08yrsUS$241.33k0.014% $208.3k

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: SUM's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Summit Materials, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Summit Materials, Inc.
  • Ticker: SUM
  • Exchange: NYSE
  • Founded:
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: US$1.509b
  • Market Cap: US$1.467b
  • Shares outstanding: 116.56m
  • Website: https://summit-materials.com

Number of Employees


Location

  • Summit Materials, Inc.
  • 1550 Wynkoop Street
  • 3rd Floor
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUMNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 2015
7SUDB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2015
0LAILSE (London Stock Exchange)YesClass A Common StockGBUSDMar 2015
7SUBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFMar 2015

Biography

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 through 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 03:38
End of Day Share Price2020/03/27 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.