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Summit Materials Inc SUM

Summit Materials, Inc. is a producer of aggregates and cement with vertically integrated operations that supply ready-mix concrete and asphalt in select markets. The Company’s West segment consists of its West and South regions, and includes operations in Texas, Utah, Arizona, Colorado, Idaho, Wyoming, Oklahoma, Arkansas and British Columbia, Canada. The West segment supplies aggregates, ready-mix concrete, asphalt paving mix and paving and related services. Its East segment consists of its East and Central regions and serves markets extending across the Midwestern and Eastern United States, notably in Kansas, Missouri, Virginia, Florida, North Carolina, South Carolina, Georgia, and Nebraska where it supplies aggregates, ready-mix concrete, asphalt paving mix and paving and related services. Its Cement segment consists of its Hannibal, Missouri and Davenport, Iowa cement plants and nine distribution terminals along the Mississippi River from Minnesota to Louisiana.


NYSE:SUM - Post by User

Bullboard Posts
Post by elmothefearlesson Nov 10, 2013 5:38pm
276 Views
Post# 21892873

Valuation

ValuationOur valuation may look stretched seeing as how we are currently sitting at a 52 week high but we're really not that expensive.

Assuming a $3.5 million Q4, we would be looking at ~$15 million cash flow (in this case synonymous with earnings) for the year.. at the current share price, net of cash, that would put us at a valuation of 18x trailing earnings.

Based on Jason Donville's most recent comments and his expectations of 2015 earnings, that would put us only about 13-14x forward earnings.. still quite cheap given the size of the potential market, and that we are in the early innings of expanding into Australia/UK/Europe.
Bullboard Posts