SUM
Summit Materials Inc - Ordinary Shares - Class A
Industrial/Transportation
12/16/2021
Presented
| Date | 12/09/2021 |
| Price | $39.44 |
| Market Cap | $4.68B |
| Ent Value | $5.39B |
| P/E Ratio | 32.58x |
| Book Value | $14.86 |
| Div Yield | 0% |
| Shares O/S | 118.57M |
| Ave Daily Vol | 749,106 |
| Short Int | 4.59% |
Current
| Price | $39.54 |
| Market Cap | $6.94B |
| Summit Materials, Inc. is a construction materials company. It manufactures construction materials and related downstream products. The company operates its business through the following segments: Cement, West and East. The Cement consists of its Hannibal, Missouri and Davenport, Iowa cement plants and distribution terminals along the Mississippi river from Minnesota to Louisiana. The West segment includes operations in Texas, Utah, Colorado, Idaho, Wyoming and Nevada and in British Columbia, Canada. The East segments serves markets extending across the Midwestern and Eastern United States, most notably in Kansas, Missouri, Virginia, Kentucky, North Carolina, South Carolina and Nebraska where the company supplies aggregates, ready mix concrete, asphalt paving mix and paving and related services. The company was founded by Thomas W. Hill on September 23, 2014 and is headquartered in Denver, CO. |
Publicly traded companies mentioned herein: Blackstone Inc (BX), Martin Marietta Materials Inc (MLM), Summit Materials Inc (SUM), Vulcan Materials Co (VMC)
Highlights
The presenter is long shares of Summit Materials Inc (SUM), a $4.6B market cap, vertically integrated aggregates player with downstream exposure in the United States that was founded in 2009 by Tom Hill and a group of investors, including Blackstone. The company is the third largest player in the space, competing with Vulcan Materials (VMC) and Martin Marietta (MLM), and he sees Summit as a clear infrastructure bill winner headed into 2022. For starters, Summit hired new CEO Anne P. Noonan in 2020 who has reset its business strategy and long-term targets, simplified the portfolio by divesting lower margin businesses, renegotiated its procurement and vendor agreements, and refocused the business around its core aggregates offering. Noonan is setting a target of greater than 30% for EBITDA margins (above the Street’s target of 23%), positioning Summit as an underappreciated transformation story that despite having lagged the pure play aggregates (MLM, VMC), offers great earnings power and has at least 25% upside in the next 12 months.
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