Summit Materials Inc (SUM) Stock Fundamental Analysis
NYSE:SUM - New York Stock Exchange, Inc. - US86614U1007 - Common Stock - Currency: USD
SUM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 11 industry peers in the Construction Materials industry. Both the profitability and the financial health of SUM get a neutral evaluation. Nothing too spectacular is happening here. SUM is valued quite expensively, but it does show have an excellent growth rating.
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.
SUM had positive earnings in each of the past 5 years.
In the past 5 years SUM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.75%, SUM is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
SUM's Return On Equity of 3.31% is on the low side compared to the rest of the industry. SUM is outperformed by 91.67% of its industry peers.
With a Return On Invested Capital value of 4.51%, SUM is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
SUM had an Average Return On Invested Capital over the past 3 years of 4.89%. This is significantly below the industry average of 20.57%.
| Industry Rank | Sector 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%
1.3 Margins
SUM has a worse Profit Margin (3.92%) than 83.33% of its industry peers.
SUM's Profit Margin has improved in the last couple of years.
SUM has a Operating Margin of 12.64%. This is in the lower half of the industry: SUM underperforms 66.67% of its industry peers.
SUM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.81%, SUM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
SUM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
SUM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SUM has been increased compared to 1 year ago.
SUM has more shares outstanding than it did 5 years ago.
SUM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that SUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SUM's Altman-Z score of 2.36 is in line compared to the rest of the industry. SUM outperforms 41.67% of its industry peers.
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 has a worse Debt to FCF ratio (16.66) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that SUM is somewhat dependend on debt financing.
The Debt to Equity ratio of SUM (0.63) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 16.66 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.51
WACC8.78%
2.3 Liquidity
SUM has a Current Ratio of 3.10. This indicates that SUM is financially healthy and has no problem in meeting its short term obligations.
SUM has a Current ratio of 3.10. This is amongst the best in the industry. SUM outperforms 91.67% of its industry peers.
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 better Quick ratio (2.48) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
SUM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.27%.
Measured over the past years, SUM shows a very strong growth in Earnings Per Share. The EPS has been growing by 59.94% on average per year.
The Revenue has grown by 49.48% in the past year. This is a very strong growth!
Measured over the past years, SUM shows a small growth in Revenue. The Revenue has been growing by 4.51% on average per year.
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
The Earnings Per Share is expected to grow by 25.33% on average over the next years. This is a very strong growth
SUM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.77% yearly.
EPS Next Y10.65%
EPS Next 2Y22.95%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue Next Year64.9%
Revenue Next 2Y33.36%
Revenue Next 3Y24.77%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SUM is valuated quite expensively with a Price/Earnings ratio of 32.81.
Based on the Price/Earnings ratio, SUM is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.71. SUM is around the same levels.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of SUM.
Based on the Price/Forward Earnings ratio, SUM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SUM to the average of the S&P500 Index (22.34), we can say SUM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
SUM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SUM is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.44 | ||
| EV/EBITDA | 13.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SUM does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SUM's earnings are expected to grow with 25.33% in the coming years.
PEG (NY)3.08
PEG (5Y)0.55
EPS Next 2Y22.95%
EPS Next 3Y25.33%
5. Dividend
5.1 Amount
No dividends for SUM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.49
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners65.2%
Inst Owner Change-6.89%
Ins OwnersN/A
Ins Owner Change-1.08%
Market Cap9.23B
Analysts70.53
Price Target50.1 (-4.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)-6.66%
PT rev (3m)-7.35%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)1.5%
EPS NY rev (1m)1.99%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 22.12 | ||
| P/S | 2.46 | ||
| P/FCF | 54.44 | ||
| P/OCF | 17.11 | ||
| P/B | 2.08 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)1.6
EY3.05%
EPS(NY)2.37
Fwd EY4.52%
FCF(TTM)0.96
FCFY1.84%
OCF(TTM)3.07
OCFY5.85%
SpS21.36
BVpS25.29
TBVpS12.63
PEG (NY)3.08
PEG (5Y)0.55
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.36 |
F-Score6
WACC8.78%
ROIC/WACC0.51
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 Y10.65%
EPS Next 2Y22.95%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue 1Y (TTM)49.48%
Revenue growth 3Y3.94%
Revenue growth 5Y4.51%
Sales Q2Q%47.35%
Revenue Next Year64.9%
Revenue Next 2Y33.36%
Revenue Next 3Y24.77%
Revenue Next 5YN/A
EBIT growth 1Y50.79%
EBIT growth 3Y14.79%
EBIT growth 5Y12.92%
EBIT Next Year197.56%
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%