SUMMIT MATERIALS Reports Second Quarter FY2023 Results on June 30 2023
August 7, 2023
🌥️Earnings Overview
SUMMIT MATERIALS ($NYSE:SUM) reported total revenue of USD 729.1 million for its second quarter of FY2023, on June 30th 2023; a 6.2% increase compared to the same period of 2023. Net income was reported at USD 83.6 million, a decrease of 56.0% year over year.
Share Price
On Wednesday, June 30 2023, SUMMIT MATERIALS reported its second quarter FY2023 results. The stock opened at $36.3 and closed at $36.5, down by 0.3% from the previous closing price of 36.6. The company’s financials showed overall growth and improvement from the first quarter. The company also reported progress in its three core product categories, including Infrastructure Materials, Aggregates, and Cement and concrete-related products. This overall progress in revenue was supported by stronger demand for SUMMIT MATERIALS products in the US and international markets.
The company also noted that it had exceeded its financial goals for the quarter, with higher operating margins than expected. This was driven by a focus on cost containment measures, increased efficiency in production, and better pricing. This has enabled them to invest in growth initiatives and to anticipate future cash flow requirements. 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 conducted an analysis of SUMMIT MATERIALS‘s wellbeing. After careful evaluation and research, we have given them a medium risk rating. This is based on both financial and business aspects. We have detected two potential risk warnings in the income sheet and balance sheet of SUMMIT MATERIALS. If you would like to receive more information about these risk warnings, feel free to register with us to find out more. 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 revealed its second quarter financial results for fiscal year 2023 on June 30 2023, posting total revenue of USD 729.1 million, a 6.2% increase year-over-year. Net income declined 56.0% to USD 83.6 million compared to the same period in 2023. This could signify a weak outlook for SUMMIT MATERIALS as an investment opportunity, as its profits are lagging and are unlikely to be on track to meet expectations. Investors should be cautious when considering SUMMIT MATERIALS and consider other opportunities in the market.
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