Summit Materials, Inc.
Summit Materials, Inc. Fundamental Analysis
Summit Materials, Inc. (SUM) shows moderate financial fundamentals with a PE ratio of 21.86, profit margin of 10.91%, and ROE of 13.28%. The company generates $3.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SUM's fundamental strength across five key dimensions:
Efficiency Score
WeakSUM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSUM trades at attractive valuation levels.
Growth Score
ModerateSUM shows steady but slowing expansion.
Financial Health Score
ModerateSUM shows balanced financial health with some risks.
Profitability Score
WeakSUM struggles to sustain strong margins.
Key Financial Metrics
Is SUM Expensive or Cheap?
P/E Ratio
SUM trades at 21.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SUM's PEG of -0.35 indicates potential undervaluation.
Price to Book
The market values Summit Materials, Inc. at 2.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.99 times EBITDA. This is generally considered low.
How Well Does SUM Make Money?
Net Profit Margin
For every $100 in sales, Summit Materials, Inc. keeps $10.91 as profit after all expenses.
Operating Margin
Core operations generate 11.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.28 in profit for every $100 of shareholder equity.
ROA
Summit Materials, Inc. generates $5.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Summit Materials, Inc. produces operating cash flow of $648.14M, showing steady but balanced cash generation.
Free Cash Flow
Summit Materials, Inc. produces free cash flow of $270.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.54 in free cash annually.
FCF Yield
SUM converts 1.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SUM Stacks Against Its Sector Peers
| Metric | SUM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.86 | 24.91 | Better (Cheaper) |
| ROE | 13.28% | 840.00% | Weak |
| Net Margin | 10.91% | -105381.00% (disorted) | Strong |
| Debt/Equity | 1.02 | 0.55 | Weak (High Leverage) |
| Current Ratio | 5.36 | 4.94 | Strong Liquidity |
| ROA | 5.55% | -4176.00% (disorted) | Weak |
SUM outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Summit Materials, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value