SUMMIT MATERIALS Reports Second Quarter FY2023 Earnings Results on August 2 2023
August 15, 2023
🌥️Earnings Overview
On August 2 2023, SUMMIT MATERIALS ($NYSE:SUM) announced their earnings results for the second quarter of FY2023, which ended on June 30 2023. Total revenue was USD 729.1 million, representing a 6.2% increase from the same quarter in FY2022. However, their reported net income was USD 83.6 million, a 56.0% decrease from the same quarter in the prior year.
Share Price
The stock opened at $36.3 and closed at $36.5, down 0.3% from the prior closing price of $36.6. Despite the slight decrease, SUMMIT MATERIALS reported a quarter-on-quarter increase in profits, largely attributed to their ongoing construction projects in several regions of the US. This increase in profits primarily came from an uptick in construction activity and increased demand for raw materials used in construction, such as cement, sand, and gravel. This was due to a combination of higher prices for raw materials and increased sales volumes.
Overall, SUMMIT MATERIALS reported strong second quarter earnings results, despite the slight dip in their stock price. With their consistent growth in revenue and profits, they are positioned well for continued growth throughout FY2023 and beyond. 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 |
| 2.47k | 169.16 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Summit Materials. More…
| Operations | Investing | Financing |
| 361.89 | -479.39 | -117.58 |
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 |
| 4.4k | 2.32k | 17.33 |
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 |
| 2.6% | 6.1% | 13.2% |
| FCF Margin | ROE | ROA |
| 4.0% | 10.1% | 4.6% |
Analysis
At GoodWhale, we recently analyzed SUMMIT MATERIALS’ fundamentals and found that it has a medium risk rating from an investment standpoint. This means that there are potential risks associated with investing in the company, but also the potential for good returns. In terms of financial risks, we detected two risk warnings in the income sheet and balance sheet. If you want to explore the details of these warnings, please register on our website and view our analysis. Speaking more broadly, SUMMIT MATERIALS’ overall business model appears sound. There are no major red flags indicating that the company’s business is at risk of failing. Therefore, if you are willing to take on the risks associated with investing in SUMMIT MATERIALS, it could be a good opportunity for you to gain some returns. 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 reported their earnings results for the second quarter of FY2023 on August 2 2023. Total revenue for the quarter increased 6.2% to USD 729.1 million year-over-year. Net income for the quarter, however, decreased 56.0% to USD 83.6 million year-over-year. Investors should pay close attention to SUMMIT MATERIALS’ performance as it could impact their investment decisions.
In particular, analyzing the company’s cost structure and revenue sources will be crucial for investors to assess the company’s future potential. Investors will also need to keep an eye on the competitive landscape to evaluate the longer-term performance of SUMMIT MATERIALS.
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