Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other end markets. More Details
Proven track record and fair value.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SUM's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Basic Materials
1 Year Return
US Basic Materials
Return vs Industry: SUM exceeded the US Basic Materials industry which returned 61.5% over the past year.
Return vs Market: SUM exceeded the US Market which returned 39% over the past year.
Long-Term 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
1 week ago | Simply Wall StThese 4 Measures Indicate That Summit Materials (NYSE:SUM) Is Using Debt Extensively
3 weeks ago | Simply Wall StDo Summit Materials's (NYSE:SUM) Earnings Warrant Your Attention?
1 month ago | Simply Wall StSummit Materials (NYSE:SUM) Might Be Having Difficulty Using Its Capital Effectively
Is Summit Materials undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SUM ($34.16) is trading below our estimate of fair value ($80.8)
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 (24.4x) compared to the US Basic Materials industry average (22.1x).
PE vs Market: SUM is poor value based on its PE Ratio (24.4x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: SUM is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SUM is good value based on its PB Ratio (2.5x) compared to the US Basic Materials industry average (3.4x).
How is Summit Materials forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SUM's forecast earnings growth (20.2% per year) is above the savings rate (2%).
Earnings vs Market: SUM's earnings (20.2% per year) are forecast to grow faster than the US market (15.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SUM's revenue (6.4% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: SUM's revenue (6.4% 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 (9.4%).
How has Summit Materials performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SUM has a large one-off gain of $30.9M impacting its April 3 2021 financial results.
Growing Profit Margin: SUM's current net profit margins (6.7%) are higher than last year (3.7%).
Past Earnings Growth Analysis
Earnings Trend: SUM's earnings have grown significantly by 24% per year over the past 5 years.
Accelerating Growth: SUM's earnings growth over the past year (90.5%) exceeds its 5-year average (24% per year).
Earnings vs Industry: SUM earnings growth over the past year (90.5%) exceeded the Basic Materials industry 77.3%.
Return on Equity
High ROE: SUM's Return on Equity (10.2%) is considered low.
How is Summit Materials's financial position?
Financial Position Analysis
Short Term Liabilities: SUM's short term assets ($858.4M) exceed its short term liabilities ($321.7M).
Long Term Liabilities: SUM's short term assets ($858.4M) do not cover its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: SUM's debt to equity ratio (117.5%) is considered high.
Reducing Debt: SUM's debt to equity ratio has reduced from 204.7% to 117.5% over the past 5 years.
Debt Coverage: SUM's debt is well covered by operating cash flow (22.5%).
Interest Coverage: SUM's interest payments on its debt are not well covered by EBIT (2.3x coverage).
What is Summit Materials's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SUM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SUM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SUM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SUM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SUM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anne Noonan (57 yo)
Ms. Anne P. Noonan has been the Chief Executive Officer, President and Director of Summit Materials, Inc. since September 01, 2020. She was the Chief Executive Officer, President and Director of OMNOVA Sol...
CEO Compensation Analysis
Compensation vs Market: Anne's total compensation ($USD3.98M) is about average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: Insufficient data to compare Anne's compensation with company performance.
Experienced Management: SUM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: SUM's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.
Summit Materials, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Summit Materials, Inc.
- Ticker: SUM
- Exchange: NYSE
- Founded: 2009
- Industry: Construction Materials
- Sector: Materials
- Implied Market Cap: US$4.098b
- Market Cap: US$4.009b
- Shares outstanding: 119.98m
- Website: https://summit-materials.com
Number of Employees
- Summit Materials, Inc.
- 1550 Wynkoop Street
- 3rd Floor
- United States
Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other end mark...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 06:16|
|End of Day Share Price||2021/06/22 00:00|
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.