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SUMMIT MATERIALS INC -CL A (SUM) Stock Fundamental Analysis

NYSE:SUM - New York Stock Exchange, Inc. - US86614U1007 - Common Stock - Currency: USD

52.42  +0.05 (+0.1%)

After market: 52.42 0 (0%)

Fundamental Rating

4

Overall SUM gets a fundamental rating of 4 out of 10. We evaluated SUM against 12 industry peers in the Construction Materials industry. SUM has only an average score on both its financial health and profitability. SUM shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year SUM was profitable.
In the past year SUM had a positive cash flow from operations.
In the past 5 years SUM has always been profitable.
In the past 5 years SUM always reported a positive cash flow from operatings.
SUM Yearly Net Income VS EBIT VS OCF VS FCFSUM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

1.2 Ratios

SUM has a worse Return On Assets (1.75%) than 91.67% of its industry peers.
SUM has a worse Return On Equity (3.31%) than 91.67% of its industry peers.
The Return On Invested Capital of SUM (4.51%) is worse than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SUM is significantly below the industry average of 19.95%.
Industry RankSector Rank
ROA 1.75%
ROE 3.31%
ROIC 4.51%
ROA(3y)5.18%
ROA(5y)4.04%
ROE(3y)11.46%
ROE(5y)9.43%
ROIC(3y)4.89%
ROIC(5y)4.65%
SUM Yearly ROA, ROE, ROICSUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

SUM has a Profit Margin of 3.92%. This is amonst the worse of the industry: SUM underperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of SUM has grown nicely.
SUM's Operating Margin of 12.64% is on the low side compared to the rest of the industry. SUM is outperformed by 66.67% of its industry peers.
In the last couple of years the Operating Margin of SUM has grown nicely.
SUM's Gross Margin of 29.81% is in line compared to the rest of the industry. SUM outperforms 58.33% of its industry peers.
SUM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.64%
PM (TTM) 3.92%
GM 29.81%
OM growth 3Y10.44%
OM growth 5Y8.05%
PM growth 3Y22.64%
PM growth 5Y46.57%
GM growth 3Y2.73%
GM growth 5Y-0.58%
SUM Yearly Profit, Operating, Gross MarginsSUM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUM is destroying value.
Compared to 1 year ago, SUM has more shares outstanding
SUM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SUM is higher compared to a year ago.
SUM Yearly Shares OutstandingSUM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SUM Yearly Total Debt VS Total AssetsSUM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 2.35 indicates that SUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.35, SUM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
SUM has a debt to FCF ratio of 16.66. This is a negative value and a sign of low solvency as SUM would need 16.66 years to pay back of all of its debts.
SUM's Debt to FCF ratio of 16.66 is on the low side compared to the rest of the industry. SUM is outperformed by 75.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that SUM is somewhat dependend on debt financing.
SUM has a Debt to Equity ratio of 0.63. This is amonst the worse of the industry: SUM underperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 16.66
Altman-Z 2.35
ROIC/WACC0.47
WACC9.56%
SUM Yearly LT Debt VS Equity VS FCFSUM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 3.10 indicates that SUM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.10, SUM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
SUM has a Quick Ratio of 2.48. This indicates that SUM is financially healthy and has no problem in meeting its short term obligations.
SUM has a Quick ratio of 2.48. This is amongst the best in the industry. SUM outperforms 91.67% of its industry peers.
Industry RankSector Rank
Current Ratio 3.1
Quick Ratio 2.48
SUM Yearly Current Assets VS Current LiabilitesSUM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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7

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.27% over the past year.
SUM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.94% yearly.
The Revenue has grown by 49.48% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 4.51% on average over the past years.
EPS 1Y (TTM)1.27%
EPS 3Y24.17%
EPS 5Y59.94%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)49.48%
Revenue growth 3Y3.94%
Revenue growth 5Y4.51%
Sales Q2Q%47.35%

3.2 Future

Based on estimates for the next years, SUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.13% on average per year.
SUM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.78% yearly.
EPS Next Y8.49%
EPS Next 2Y16.28%
EPS Next 3Y18.13%
EPS Next 5YN/A
Revenue Next Year65.14%
Revenue Next 2Y32.66%
Revenue Next 3Y22.78%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SUM Yearly Revenue VS EstimatesSUM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
SUM Yearly EPS VS EstimatesSUM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.76, which means the current valuation is very expensive for SUM.
Based on the Price/Earnings ratio, SUM is valued a bit more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.51. SUM is around the same levels.
Based on the Price/Forward Earnings ratio of 24.69, the valuation of SUM can be described as rather expensive.
66.67% of the companies in the same industry are more expensive than SUM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 93.88. SUM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 32.76
Fwd PE 24.69
SUM Price Earnings VS Forward Price EarningsSUM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUM indicates a somewhat cheap valuation: SUM is cheaper than 66.67% of the companies listed in the same industry.
SUM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 54.3
EV/EBITDA 13.39
SUM Per share dataSUM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SUM's earnings are expected to grow with 18.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.86
PEG (5Y)0.55
EPS Next 2Y16.28%
EPS Next 3Y18.13%

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0

5. Dividend

5.1 Amount

SUM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SUMMIT MATERIALS INC -CL A

NYSE:SUM (1/30/2025, 4:20:13 PM)

After market: 52.42 0 (0%)

52.42

+0.05 (+0.1%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners70.82%
Inst Owner Change0.93%
Ins Owners0.42%
Ins Owner Change0.18%
Market Cap9.20B
Analysts72.63
Price Target53.68 (2.4%)
Short Float %5.51%
Short Ratio1.72
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.89%
Min EPS beat(2)6.65%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)19.52%
Min EPS beat(4)6.65%
Max EPS beat(4)48.07%
EPS beat(8)8
Avg EPS beat(8)18.03%
EPS beat(12)10
Avg EPS beat(12)12.07%
EPS beat(16)13
Avg EPS beat(16)13.68%
Revenue beat(2)0
Avg Revenue beat(2)-4.78%
Min Revenue beat(2)-5.63%
Max Revenue beat(2)-3.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-5.63%
Max Revenue beat(4)11.01%
Revenue beat(8)4
Avg Revenue beat(8)-0.21%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)9
Avg Revenue beat(16)2.46%
PT rev (1m)-0.74%
PT rev (3m)10.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.87%
Valuation
Industry RankSector Rank
PE 32.76
Fwd PE 24.69
P/S 2.45
P/FCF 54.3
P/OCF 17.06
P/B 2.07
P/tB 4.15
EV/EBITDA 13.39
EPS(TTM)1.6
EY3.05%
EPS(NY)2.12
Fwd EY4.05%
FCF(TTM)0.97
FCFY1.84%
OCF(TTM)3.07
OCFY5.86%
SpS21.38
BVpS25.32
TBVpS12.64
PEG (NY)3.86
PEG (5Y)0.55
Profitability
Industry RankSector Rank
ROA 1.75%
ROE 3.31%
ROCE 6.03%
ROIC 4.51%
ROICexc 4.98%
ROICexgc 7.24%
OM 12.64%
PM (TTM) 3.92%
GM 29.81%
FCFM 4.51%
ROA(3y)5.18%
ROA(5y)4.04%
ROE(3y)11.46%
ROE(5y)9.43%
ROIC(3y)4.89%
ROIC(5y)4.65%
ROICexc(3y)5.44%
ROICexc(5y)5.16%
ROICexgc(3y)8.1%
ROICexgc(5y)7.79%
ROCE(3y)6.53%
ROCE(5y)6.21%
ROICexcg growth 3Y3.53%
ROICexcg growth 5Y5.58%
ROICexc growth 3Y6.61%
ROICexc growth 5Y7.42%
OM growth 3Y10.44%
OM growth 5Y8.05%
PM growth 3Y22.64%
PM growth 5Y46.57%
GM growth 3Y2.73%
GM growth 5Y-0.58%
F-Score6
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 16.66
Debt/EBITDA 3.33
Cap/Depr 100.52%
Cap/Sales 9.85%
Interest Coverage 3.17
Cash Conversion 64.03%
Profit Quality 115.02%
Current Ratio 3.1
Quick Ratio 2.48
Altman-Z 2.35
F-Score6
WACC9.56%
ROIC/WACC0.47
Cap/Depr(3y)109.47%
Cap/Depr(5y)97.16%
Cap/Sales(3y)9.87%
Cap/Sales(5y)9.04%
Profit Quality(3y)56.33%
Profit Quality(5y)121.42%
High Growth Momentum
Growth
EPS 1Y (TTM)1.27%
EPS 3Y24.17%
EPS 5Y59.94%
EPS Q2Q%-7.41%
EPS Next Y8.49%
EPS Next 2Y16.28%
EPS Next 3Y18.13%
EPS Next 5YN/A
Revenue 1Y (TTM)49.48%
Revenue growth 3Y3.94%
Revenue growth 5Y4.51%
Sales Q2Q%47.35%
Revenue Next Year65.14%
Revenue Next 2Y32.66%
Revenue Next 3Y22.78%
Revenue Next 5YN/A
EBIT growth 1Y50.79%
EBIT growth 3Y14.79%
EBIT growth 5Y12.92%
EBIT Next Year197.23%
EBIT Next 3Y54.11%
EBIT Next 5YN/A
FCF growth 1Y203.77%
FCF growth 3Y-7.52%
FCF growth 5YN/A
OCF growth 1Y88.16%
OCF growth 3Y2.38%
OCF growth 5Y15.95%