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1. Company Snapshot

1.a. Company Description

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, and residential and nonresidential end markets.It operates through three segments: West, East, and Cement.The company's products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components.


It also provides asphalt paving and related services to the private and public infrastructure sectors.In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminals.It has operations in the United States; and in British Columbia, Canada.


The company was founded in 2009 and is headquartered in Denver, Colorado.

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1.b. Last Insights on SUM

The recent positive drivers behind Summit Materials, Inc.'s stock performance include the announcement of its acquisition by Quikrete Holdings, Inc. for $52.50 per share in cash, which has likely boosted investor confidence in the company's future prospects. This deal has sparked investigations by law firms such as Halper Sadeh LLC, Schall Law Firm, and Kahn Swick & Foti, LLC, which are examining whether the sale price is fair to shareholders, potentially leading to a higher payout.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Summit Materials Completes Merger with Quikrete

Feb -10

Source: prnewswire.com

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Summit Materials Announces Stockholder Approval of Quikrete Transaction

Feb -05

Source: prnewswire.com

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Summit Materials, Inc. Is Being Investigated For Securities Fraud And Affected Investors Are Urged To Contact The Schall Law Firm

Jan -30

Source: accessnewswire.com

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Summit Materials, Inc. Is Being Investigated For Securities Fraud And Affected Investors Are Urged To Contact The Schall Law Firm

Jan -28

Source: accessnewswire.com

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The Schall Law Firm Invites Shareholders With Losses To Join An Inquiry Into Summit Materials, Inc. For Securities Law Violations

Jan -27

Source: accessnewswire.com

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Summit Materials, Inc. Is Being Investigated For Securities Fraud And Affected Investors Are Urged To Contact The Schall Law Firm

Jan -26

Source: accessnewswire.com

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The Schall Law Firm Invites Shareholders With Losses To Join An Inquiry Into Summit Materials, Inc. For Securities Law Violations

Jan -24

Source: accessnewswire.com

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Summit Materials, Inc. Is Being Investigated For Securities Fraud And Affected Investors Are Urged To Contact The Schall Law Firm

Jan -23

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.81%)

6. Segments

West

Expected Growth: 4.83%

West segment's 4.83% growth is driven by increasing demand for construction materials in California and Nevada, fueled by infrastructure projects and residential development. Additionally, Summit Materials' strategic acquisitions and operational efficiencies have contributed to the segment's growth.

East

Expected Growth: 4.83%

East segment's 4.83% growth is driven by increasing infrastructure projects, rising demand for construction materials, and strategic acquisitions. Additionally, Summit Materials' focus on operational efficiency, cost savings, and pricing initiatives contribute to the segment's growth.

Cement

Expected Growth: 4.7%

Summit Materials, Inc.'s cement segment growth of 4.7% is driven by increasing demand from infrastructure projects, residential construction, and repair activities. Additionally, the company's strategic acquisitions, operational efficiencies, and pricing initiatives contribute to the growth. Furthermore, the rising need for sustainable construction materials and the company's focus on environmentally friendly products also support the segment's growth.

7. Detailed Products

Aggregates

Summit Materials, Inc. offers a wide range of aggregates, including crushed stone, sand, and gravel, used in construction, landscaping, and infrastructure projects.

Cement

Summit Materials, Inc. provides high-quality cement products, including Portland cement, masonry cement, and specialty cements, used in construction and infrastructure projects.

Ready-Mix Concrete

Summit Materials, Inc. offers ready-mix concrete products, including standard and specialty mixes, used in construction, infrastructure, and residential projects.

Asphalt

Summit Materials, Inc. provides asphalt products, including hot mix asphalt and asphalt emulsions, used in road construction, maintenance, and repair.

Paving and Construction Services

Summit Materials, Inc. offers paving and construction services, including asphalt paving, concrete paving, and site development, used in infrastructure and construction projects.

8. Summit Materials, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Summit Materials, Inc. is medium due to the availability of alternative materials and products in the construction industry.

Bargaining Power Of Customers

The bargaining power of customers for Summit Materials, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Summit Materials, Inc. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Summit Materials, Inc. is low due to the high barriers to entry in the construction materials industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Summit Materials, Inc. is high due to the competitive nature of the construction materials industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.92%
Debt Cost 6.62%
Equity Weight 50.08%
Equity Cost 10.61%
WACC 8.62%
Leverage 99.70%

11. Quality Control: Summit Materials, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.7/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 3.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Cabot

A-Score: 5.5/10

Value: 7.1

Growth: 6.4

Quality: 6.0

Yield: 5.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Summit Materials

A-Score: 4.5/10

Value: 1.9

Growth: 5.6

Quality: 4.0

Yield: 1.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Eagle Materials

A-Score: 4.3/10

Value: 3.7

Growth: 7.6

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Knife River

A-Score: 3.4/10

Value: 6.1

Growth: 5.2

Quality: 3.9

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

52.49$

Current Price

52.49$

Potential

-0.00%

Expected Cash-Flows