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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
Comment by elmothefearlesson Mar 25, 2014 6:53pm
275 Views
Post# 22366999

RE:RE:RE:RE:Buying opportunity

RE:RE:RE:RE:Buying opportunityImo the 2013 financial results were fantastic.  Grew cash flow from operating activities by almost 50%, not sure if you can ask much more from a tech company.  Strong, steady growth.

You're right infirstmoney, they have about $40 million of positive working capital.  At today's share price that puts them at about a $280 mm enterprise value, i.e. we are trading about 19x trailing earnings.  Looking forward we are probably closer to 16-17x earnings.  For a company that has delivered yoy growth of 30-50% for the past 3 years, that's a pretty cheap multiple imo, especially for a SaaS company, for which some comparables trade as high as 30x cash flow.

I formerly worked as an auditor and I can tell you right now the need for their services or technology is not going away.
Bullboard Posts