Is Summit Materials a Good Stock to Buy?

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Summit Materials Stock Intrinsic Value – Summit Materials ($NYSE:SUM) Inc. is a construction materials company with operations in the United States and Canada. The company produces cement, concrete, aggregates, and asphalt. The company’s shares look like a good value at current prices.

Stock Price

Summit Materials Inc. has been in the news a lot lately, and the sentiment has mostly been positive. On Friday, the stock opened at $24.7 and closed at $25.5, up by 3.3% from the previous closing price of $24.7. The company has been reporting strong financial results, and this has led to positive analyst ratings and price target upgrades. The company’s shareholders have also been rewarded with a dividend hike and a share repurchase program. The answer is that it depends on your investment goals and risk tolerance. If you’re looking for a company with strong financials and a bright future, then Summit Materials Inc. is worth considering.

However, if you’re risk-averse, then you may want to wait for the stock to pull back before buying.

VI Analysis – Summit Materials Stock Intrinsic Value

The company’s fundamentals reflect its long term potential and the intrinsic value of its shares is around $25.9. The current share price of $25.5 represents a fair price for the company.

VI 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

If you’re looking for a construction materials stock that could be a solid investment, Summit Materials Inc. could be worth considering. It’s a diversified business, with operations in cement, concrete, aggregates, and asphalt. The company has been growing rapidly in recent years through a combination of organic growth and acquisitions. It has been particularly active in consolidating the fragmented U.S. cement industry, and now has a national footprint. This should give it some competitive advantages, including greater purchasing power and the ability to better serve customers across the country. Investors should be aware that the construction materials industry can be cyclical, so Summit Materials‘ results will vary depending on the strength of the economy.

However, the company’s diversified business should help to smooth out some of the volatility. Overall, Summit Materials looks like a well-positioned construction materials stock that could be a good long-term investment.