Clearbridge Investments LLC Increases Stake in Summit Materials, on May 23, 2023.
May 30, 2023
🌥️Trending News
On May 23, 2023, Clearbridge Investments LLC made headlines as they reportedly increased their ownership of Summit Materials ($NYSE:SUM) Inc. The investment firm’s move was made public as per their issued statement. Summit Materials is a leading supplier of construction materials and services in the United States and Canada, and is the third-largest aggregates business in both countries. The company’s products include asphalt, cement, concrete, lime, and aggregates. Summit Materials also offers its customers a full range of services, such as planning and scheduling, delivery logistics, and site management.
The added stake in Summit Materials by Clearbridge Investments shows their confidence in the company’s future potential. With the company’s commitment to providing superior quality products and services combined with Clearbridge’s expertise in investments, Summit Materials is well-positioned to continue its growth trajectory. It is likely that the increased ownership stake will help position Summit Materials to capitalize on forthcoming opportunities in the industry.
Stock Price
The stock opened at $31.4 and closed at $31.9, up by 2.0% from its previous closing price of $31.3. This news prompted investors to look favorably upon the company’s stock. With the additional investment from Clearbridge Investments, Summit Materials is well-positioned to continue its growth in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Summit Materials. More…
| Total Revenues | Net Income | Net Margin |
| 2.43k | 275.63 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Summit Materials. More…
| Operations | Investing | Financing |
| 301.15 | -13.14 | -194.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Summit Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.21k | 2.23k | 16.56 |
Key Ratios Snapshot
Some of the financial key ratios for Summit Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.5% | 6.6% | 18.9% |
| FCF Margin | ROE | ROA |
| 1.2% | 14.4% | 6.8% |
Analysis
GoodWhale recently conducted an analysis of SUMMIT MATERIALS‘s wellbeing. Our Star Chart shines a light on the company’s health score of 8/10, which is indicative of its strong cashflows and debt. We have also concluded that SUMMIT MATERIALS is classified as an ‘elephant’, or a company which is rich in assets after deducting off liabilities. With such a strong foundation, it is likely that SUMMIT MATERIALS would be of interest to various types of investors. In particular, the company is strong in asset, medium in growth, profitability and weak in dividend. With this information, investors can make an informed decision as to whether or not to invest in SUMMIT MATERIALS. More…
Peers
In the construction materials industry, there is intense competition between Summit Materials Inc and its main competitors JK Lakshmi Cement Ltd, Prism Johnson Ltd, and Shree Cement Ltd. All four companies are striving to gain market share and improve their financial performance.
– JK Lakshmi Cement Ltd ($BSE:500380)
JK Lakshmi Cement Ltd is an Indian cement company. The company has a market cap of 62.76B as of 2022 and a return on equity of 18.75%. JK Lakshmi Cement is a part of the JK Organisation, which is one of the largest business groups in India. The company manufactures and markets cement and other construction materials. It has a network of over 6,000 dealers and distributors across India. The company has 11 manufacturing plants in India and a market share of about 4%.
– Prism Johnson Ltd ($BSE:500338)
Prism Johnson Ltd is one of the largest diversified business groups in India with a market cap of 61.99B as of 2022. The company has a Return on Equity of 11.43%. The company has a diversified business portfolio with interests in cement, textile, paper, and chemicals. The company has a strong presence in the Indian market and is one of the leading players in the cement and textile industries.
– Shree Cement Ltd ($BSE:500387)
Shree Cement Ltd. is an Indian cement manufacturing company established in Beawar, Ajmer district, Rajasthan in the year 1979. The company has a market cap of 755.51B as of 2022 and a Return on Equity of 7.65%. The company produces Ordinary Portland Cement, Portland Pozzolana Cement, and Portland Slag Cement. It also provides ready mix concrete and other value-added products and services. The company has a presence in India, the United Arab Emirates, Bahrain, Bangladesh, and Sri Lanka.
Summary
Clearbridge Investments LLC made headlines when they increased their stake in Summit Materials, Inc. on May 23, 2023. This investment decision has been carefully analyzed by the firm and is seen as an indication of their optimism in the company’s growth potential. The firm’s analysis has focused on Summit Materials’ industry performance, financials, and competitive position. Analysts have highlighted the company’s strong margins, strong cash flow generation, and growth in sales to support their long-term outlook.
The company also has a large presence in the industry with various competitive advantages. Clearbridge Investments LLC believes that Summit Materials will continue to be profitable and will be an attractive investment in the future.
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