Analyst Scoreboard: 9 Ratings For Summit Materials

9 analysts have expressed a variety of opinions on Summit Materials SUM over the past quarter, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Summit Materials, revealing an average target of $47.0, a high estimate of $56.00, and a low estimate of $41.00. A decline of 1.57% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

The perception of Summit Materials by financial experts is analyzed through recent analyst actions. The following summary presents 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.

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.

Discovering Summit Materials: A Closer Look

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 Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Summit Materials showcased positive performance, achieving a revenue growth rate of 53.37% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out 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 9.49%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Summit Materials's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.48%, the company may encounter challenges in delivering satisfactory returns for shareholders.

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.

Analyst Ratings: What Are They?

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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