Summit Materials Intrinsic Stock Value – Summit Materials Proves Ability to Responsibly Manage Debt

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Summit Materials ($NYSE:SUM) is a company that has proven its ability to responsibly manage debt and remain fiscally responsible. This is an impressive feat in an industry as competitive as construction materials and building products. For investors, Summit Materials provides an excellent opportunity to invest in a stable and low-risk company that has demonstrated its ability to maintain a strong balance sheet and financial health. The reasons why Summit Materials is able to demonstrate fiscal responsibility with their debt is due to their strong financial management practices. They have a strong focus on cash flow management and debt structure, ensuring that all debt is managed responsibly.

Additionally, the company has policies in place to minimize risk and ensure that their capital structure remains sound. This includes regularly reviewing and evaluating their debt portfolio, as well as ensuring that their debt-to-equity ratio remains within acceptable parameters. Furthermore, Summit Materials has also demonstrated an ability to make smart investments to improve their operations and expand their market share. By investing in the latest technologies and resources, they are able to keep up with industry trends and remain competitive. Additionally, they have a large portfolio of real estate assets, which provides a steady source of income and helps them to manage their debt. Overall, Summit Materials has proven itself to be a responsible and prudent company when it comes to managing their debt. With their strong financial management practices, solid balance sheet, and careful investments they have been able to remain competitive and successful in the construction materials and building products industry. Investors looking for a low-risk company to invest in should look no further than Summit Materials.

Stock Price

On Friday, SUMMIT MATERIALS stock opened at $35.8 and closed at $36.4, up by 1.3% from its previous closing price of $35.9. The increase in stock price could also be interpreted as a sign that investors are confident in the company’s long-term prospects. The recent stock performance of SUMMIT MATERIALS shows that the company is able to demonstrate effective debt management. The company has taken steps to reduce its debt levels while continuing to invest in its core activities. As a result, SUMMIT MATERIALS is well-positioned to increase its business performance in the coming years.

The market’s confidence in SUMMIT MATERIALS’ ability to manage its debt is further evidenced by its share price appreciation on Friday. This suggests that the company’s strategy of reducing debt and investing in its operations is paying off. With this in mind, investors can rest assured that their investments are in good hands with SUMMIT MATERIALS. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Summit Materials. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Summit Materials. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Summit Materials. More…

Key Ratios Snapshot

Some of the financial key ratios for Summit Materials are shown below. More…

Analysis – Summit Materials Intrinsic Stock Value

At GoodWhale, we have conducted a thorough analysis of SUMMIT MATERIALS‘ fundamentals and are happy to provide our findings. Based on our proprietary Valuation Line, we believe the fair value of SUMMIT MATERIALS share is around $31.7. However, the stock is currently trading at $36.4, which is 15.0% higher than its fair value. This implies that the stock is overvalued at the current market price. 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

Summit Materials is a great investment opportunity for those looking for a resilient stock. The company has a strong balance sheet and shows a responsible approach to debt management. Its efficient operations, sound strategies, and the ability to capitalize on opportunities offer investors a stable outlook for future growth.

The company also has an extensive network of suppliers and customers that provides it with consistent revenue streams and generates a healthy cash flow. Overall, Summit Materials is well-positioned to deliver solid returns for its shareholders.