A Glimpse Into The Expert Outlook On Summit Materials Through 13 Analysts

During the last three months, 13 analysts shared their evaluations of Summit Materials SUM, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $46.0, a high estimate of $53.00, and a low estimate of $38.00. This upward trend is apparent, with the current average reflecting a 7.23% increase from the previous average price target of $42.90.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Summit Materials among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Summit Materials. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Summit Materials compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Summit Materials's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Summit Materials's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Summit Materials analyst ratings.

Delving into Summit Materials's Background

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.

A Deep Dive into Summit Materials's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Summit Materials's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 19.53%. This signifies a substantial increase in the company's 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: Summit Materials's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.45%, the company may face hurdles in effective cost management.

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): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.06%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Summit Materials's debt-to-equity ratio surpasses industry norms, standing at 1.01. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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