A Glimpse Into The Expert Outlook On Summit Materials Through 4 Analysts

4 analysts have shared their evaluations of Summit Materials SUM during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $46.25, a high estimate of $47.00, and a low estimate of $44.00. This current average has decreased by 10.19% from the previous average price target of $51.50.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Summit Materials is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Summit Materials. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

Capture valuable insights into Summit Materials's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Summit Materials analyst ratings.

All You Need to Know About 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's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Over the 3 months period, Summit Materials showcased positive performance, achieving a revenue growth rate of 38.91% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: Summit Materials's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 9.49%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.48%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Summit Materials's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.29%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Summit Materials's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.