Critical Insights From Summit Materials Analyst Ratings: What You Need To Know

In the last three months, 7 analysts have published ratings on Summit Materials SUM, offering a diverse range of perspectives from bullish to bearish.

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 $46.86, a high estimate of $51.00, and a low estimate of $44.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 4.7%.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into 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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Summit Materials. This offers insight into analysts' perspectives on 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: Gaining insights, analysts provide estimates for the future value of Summit Materials's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Summit Materials's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Summit Materials analyst ratings.

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.

Financial Milestones: Summit Materials's Journey

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

Revenue Growth: Summit Materials's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 53.37%. This signifies 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 standards, pointing towards difficulties in achieving strong profitability. With a net margin of 9.49%, the company may encounter 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 2.48%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Summit Materials's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.29%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.66, Summit Materials faces challenges in effectively managing its debt levels, indicating potential financial strain.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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