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SUM

Summit Materials NYSE:SUM Stock Report

Last Price

US$24.23

Market Cap

US$2.9b

7D

1.3%

1Y

-31.9%

Updated

26 Jun, 2022

Data

Company Financials +
SUM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

SUM Stock Overview

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, and residential and nonresidential end markets.

Summit Materials Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Summit Materials
Historical stock prices
Current Share PriceUS$24.23
52 Week HighUS$41.46
52 Week LowUS$22.83
Beta1.3
1 Month Change-11.44%
3 Month Change-23.57%
1 Year Change-31.92%
3 Year Change25.87%
5 Year Change-14.90%
Change since IPO20.35%

Recent News & Updates

Jun 19

Summit Materials: Investor Day Outlines The Next Leg Of Growth

Summit Materials has presented some ambitious but achievable medium-term financial targets. While inflation is a headwind, the resilient demand environment and Summit's ability to take pricing should help. With a stronger balance sheet also allowing for more aggressive capital allocation, I see the relative valuation gap narrowing.

Jun 17
Returns On Capital At Summit Materials (NYSE:SUM) Have Stalled

Returns On Capital At Summit Materials (NYSE:SUM) Have Stalled

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 19
Should You Investigate Summit Materials, Inc. (NYSE:SUM) At US$26.67?

Should You Investigate Summit Materials, Inc. (NYSE:SUM) At US$26.67?

Summit Materials, Inc. ( NYSE:SUM ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

SUMUS Basic MaterialsUS Market
7D1.3%1.1%6.6%
1Y-31.9%-18.1%-18.4%

Return vs Industry: SUM underperformed the US Basic Materials industry which returned -18.1% over the past year.

Return vs Market: SUM underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is SUM's price volatile compared to industry and market?
SUM volatility
SUM Average Weekly Movement6.5%
Basic Materials Industry Average Movement6.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
20095,500Anne Noonanhttps://summit-materials.com

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, and residential and nonresidential end 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.

Summit Materials Fundamentals Summary

How do Summit Materials's earnings and revenue compare to its market cap?
SUM fundamental statistics
Market CapUS$2.89b
Earnings (TTM)US$140.41m
Revenue (TTM)US$2.40b

20.4x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUM income statement (TTM)
RevenueUS$2.40b
Cost of RevenueUS$1.74b
Gross ProfitUS$659.68m
Other ExpensesUS$519.27m
EarningsUS$140.41m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.19
Gross Margin27.45%
Net Profit Margin5.84%
Debt/Equity Ratio91.4%

How did SUM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SUM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SUM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA9x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does SUM's PE Ratio compare to its peers?

SUM PE Ratio vs Peers
The above table shows the PE ratio for SUM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18x

Price-To-Earnings vs Peers: SUM is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the peer average (18x).


Price to Earnings Ratio vs Industry

How does SUM's PE Ratio compare vs other companies in the Global Basic Materials Industry?

Price-To-Earnings vs Industry: SUM is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the US Basic Materials industry average (16.1x)


Price to Earnings Ratio vs Fair Ratio

What is SUM'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.

SUM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.4x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: SUM is good value based on its Price-To-Earnings Ratio (20.4x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).


Share Price vs Fair Value

What is the Fair Price of SUM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUM ($24.23) is trading below our estimate of fair value ($90.98)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUM's forecast earnings growth (22.4% per year) is above the savings rate (1.9%).

Earnings vs Market: SUM's earnings (22.4% per year) are forecast to grow faster than the US market (13.9% per year).

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

Revenue vs Market: SUM's revenue (7.7% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: SUM's revenue (7.7% 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 (10.7%).


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Past Performance

How has Summit Materials performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUM has high quality earnings.

Growing Profit Margin: SUM's current net profit margins (5.8%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: SUM's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: SUM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUM had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Basic Materials industry average (-12.2%).


Return on Equity

High ROE: SUM's Return on Equity (8.2%) is considered low.


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Financial Health

How is Summit Materials's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SUM's short term assets ($777.8M) exceed its short term liabilities ($305.1M).

Long Term Liabilities: SUM's short term assets ($777.8M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: SUM's net debt to equity ratio (75%) is considered high.

Reducing Debt: SUM's debt to equity ratio has reduced from 143.1% to 91.4% over the past 5 years.

Debt Coverage: SUM's debt is well covered by operating cash flow (23%).

Interest Coverage: SUM's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SUM has not reported any payouts.


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Management

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

1.3yrs

Average management tenure


CEO

Anne Noonan (58 yo)

1.75yrs

Tenure

US$6,296,104

Compensation

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 ($USD6.30M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Insufficient data to compare Anne's compensation with company performance.


Leadership Team

Experienced Management: SUM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: SUM's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SUM insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information

  • Name: Summit Materials, Inc.
  • Ticker: SUM
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: US$2.893b
  • Market Cap: US$2.862b
  • Shares outstanding: 119.41m
  • Website: https://summit-materials.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/02
Annual Earnings2022/01/01


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.