The share price of Summit Materials, Inc. [NYSE: SUM] inclined by $23.58, presently trading at $23.03. The company’s shares saw 104.71% gains compared to the lowest price in the period of the last 52 weeks, set at $11.25 recorded on Dec 6, 2019. The last few days have been tough to the share price as SUM fall by -3.52% during the last week, even though the stock is still down by -6.25% compared to -0.84 of all time high it touched on 12/04/19. However, the stock had a strong performance during the past 3 months, roughly gaining 1.59%, while additionally gaining 71.10% during the last 12 months. Summit Materials, Inc. is said to have a 12-month price target set at $25.79. That means that the stock has a strong potential to acquire 2.76% increase from the current trading price.
Summit Materials, Inc. [NYSE:SUM]: Analyst Rating and Earnings
Its stock price has been found in the range of 11.25 to 24.57. This is compared to its latest closing price of $23.58.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 5 Feb (In 59 Days).
Fundamental Analysis of Summit Materials, Inc. [SUM]
Now let’s turn to look at profitability: with a current Operating Margin for Summit Materials, Inc. [SUM] sitting at +7.33 and its Gross Margin at +20.01, this company’s Net Margin is now 0.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.91, and its Return on Invested Capital has reached 4.20%. Its Return on Equity is 2.62, and its Return on Assets is 0.89. These metrics suggest that this Summit Materials, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Summit Materials, Inc. [SUM] has generated a Total Debt to Total Equity ratio of 137.78. Similarly, its
What about valuation? This company’s Enterprise Value to EBITDA is 11.94 and its Total Debt to EBITDA Value is 5.10. The Enterprise Value to Sales for this firm is now 1.99, and its Total Debt to Enterprise Value stands at 0.59. Summit Materials, Inc. [SUM] has a Price to Book Ratio of 1.03, a Price to Cash Flow Ratio of 6.60 and P/E Ratio of 1,117.96. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Summit Materials, Inc. [SUM] earns $350,167 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.53 and its Total Asset Turnover is 0.55. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.45 and its Current Ratio is 2.27. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Summit Materials, Inc. [SUM] has 114.96M shares outstanding, amounting to a total market cap of $2.65B. Its stock price has been found in the range of 11.25 to 24.57. At its current price, it has moved down by -6.25% from its 52-week high, and it has moved up 104.71% from its 52-week low.
This stock’s Beta value is currently 2.14, which indicates that it is 3.01% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.79. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Summit Materials, Inc. [SUM] a Reliable Buy?
Shares of Summit Materials, Inc. [SUM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.