NYSE:SUM

Stock Analysis Report

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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. More Details


Snowflake Analysis

Undervalued with solid 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

SUM

-0.2%

US Basic Materials

-1.3%

US Market


1 Year Return

-12.8%

SUM

-2.6%

US Basic Materials

18.5%

US Market

Return vs Industry: SUM underperformed the US Basic Materials industry which returned -2.6% over the past year.

Return vs Market: SUM underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

SUMIndustryMarket
7 Day3.4%-0.2%-1.3%
30 Day27.1%12.9%5.3%
90 Day11.3%14.0%7.5%
1 Year-12.8%-12.8%-1.6%-2.6%21.3%18.5%
3 Year-37.9%-37.9%10.1%7.4%42.4%32.9%
5 Year1.9%1.9%57.9%51.4%84.2%63.5%

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?

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUM ($19.49) is trading below our estimate of fair value ($24.82)

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


Price To Earnings Ratio

PE vs Industry: SUM is good value based on its PE Ratio (21.3x) compared to the US Basic Materials industry average (25.8x).

PE vs Market: SUM is poor value based on its PE Ratio (21.3x) compared to the US market (19x).


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 (1.5x) compared to the US Basic Materials industry average (1.7x).


Next Steps

Future Growth

How is Summit Materials forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUM's forecast earnings growth (23.4% per year) is above the savings rate (2.2%).

Earnings vs Market: SUM's earnings (23.4% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: SUM's revenue (4.1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SUM's revenue (4.1% 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 (10.9%).


Next Steps

Past Performance

How has Summit Materials performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUM has high quality earnings.

Growing Profit Margin: SUM's current net profit margins (4.5%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: SUM has become profitable over the past 5 years, growing earnings by 24.3% per year.

Accelerating Growth: SUM's earnings growth over the past year (424%) exceeds its 5-year average (24.3% per year).

Earnings vs Industry: SUM earnings growth over the past year (424%) exceeded the Basic Materials industry 17.2%.


Return on Equity

High ROE: SUM's Return on Equity (7.3%) 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 ($822.0M) exceed its short term liabilities ($336.7M).

Long Term Liabilities: SUM's short term assets ($822.0M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: SUM's debt to equity ratio (127.1%) is considered high.

Reducing Debt: SUM's debt to equity ratio has reduced from 131.1% to 127.1% over the past 5 years.

Debt Coverage: SUM's debt is well covered by operating cash flow (20.6%).

Interest Coverage: SUM's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


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 recent payouts.

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

  • Explore strong dividend paying companies in the Materials industry.

Management

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

7.0yrs

Average management tenure


CEO

Anne Noonan (57 yo)

0.083

Tenure

Ms. Anne P. Noonan has been the Chief Executive Officer, President and Director of Summit Materials, Inc. since September 01, 2020. She was the Chief Executive Officer, President and Director of OMNOVA Sol ...


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Hill
Founder & Senior Advisorno dataUS$6.81m0.20%
$ 4.6m
Brian Harris
Executive VP & CFO7yrsUS$2.32m0.092%
$ 2.1m
Anne Benedict
Executive VPno dataUS$1.45m0.010%
$ 237.7k
Michael Brady
Executive VP & Chief Business Development Officer11.5yrsUS$1.75m0.024%
$ 543.1k
M. Evans
no dataUS$1.44m0.015%
$ 344.3k
Anne Noonan
President0.083yrno data0.058%
$ 1.3m
Karli Anderson
Vice President of Investor Relations1.17yrsno datano data
Thomas Beck
Executive VP & Cement Division President7.75yrsno data0.015%
$ 352.9k

7.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SUM's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anne Noonan
President0.083yrno data0.058%
$ 1.3m
Steven Wunning
Independent Director4.17yrsUS$248.43k0.018%
$ 419.2k
Howard Lance
Independent Chairman7.67yrsUS$388.43k0.020%
$ 455.6k
Joseph Cantie
Independent Director4.42yrsUS$238.43k0.018%
$ 419.7k
Anne Cooney
Independent Director2.17yrsUS$238.43k0.012%
$ 266.1k
Susan Ellerbusch
Independent Director2.17yrsUS$238.43k0.012%
$ 266.1k
Anne Wade
Independent Director4.75yrsUS$238.43k0.020%
$ 455.6k
John Murphy
Independent Director8.67yrsUS$253.43k0.014%
$ 313.2k

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SUM's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SUM 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$2.286b
  • Market Cap: US$2.224b
  • Shares outstanding: 117.17m
  • 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

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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 01:02
End of Day Share Price2020/10/20 00:00
Earnings2020/06/27
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.