Analyst Scoreboard: 11 Ratings For Summit Materials

Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on Summit Materials SUM in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Summit Materials, presenting an average target of $43.73, a high estimate of $49.00, and a low estimate of $38.00. Marking an increase of 7.02%, the current average surpasses the previous average price target of $40.86.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Summit Materials. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Summit Materials. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Summit Materials compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Summit Materials's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Summit Materials analyst ratings.

Unveiling the Story Behind Summit Materials

Summit Materials Inc is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company's three operating and reporting segments are the West, East and Cement segments. It operates in 21 U.S. states and in British Columbia, Canada and has assets in 21 U.S. states and in British Columbia, Canada through its platform.

Summit Materials: Delving into Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Positive Revenue Trend: Examining Summit Materials's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 19.53% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.45%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Summit Materials's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.13%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Summit Materials's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.06%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.01, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.