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Summit Materials (Summit Materials) Intrinsic Value: Projected FCF : $25.70 (As of May. 04, 2024)


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What is Summit Materials Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-04), Summit Materials's Intrinsic Value: Projected FCF is $25.70. The stock price of Summit Materials is $39.46. Therefore, Summit Materials's Price-to-Intrinsic-Value-Projected-FCF of today is 1.5.

The historical rank and industry rank for Summit Materials's Intrinsic Value: Projected FCF or its related term are showing as below:

SUM' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.93   Med: 1.5   Max: 1.83
Current: 1.54

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Summit Materials was 1.83. The lowest was 0.93. And the median was 1.50.

SUM's Price-to-Projected-FCF is ranked worse than
71.61% of 310 companies
in the Building Materials industry
Industry Median: 0.88 vs SUM: 1.54

Summit Materials Intrinsic Value: Projected FCF Historical Data

The historical data trend for Summit Materials's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Summit Materials Intrinsic Value: Projected FCF Chart

Summit Materials Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.55 19.46 21.97 23.30 26.00

Summit Materials Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.74 22.85 25.56 26.00 25.70

Competitive Comparison of Summit Materials's Intrinsic Value: Projected FCF

For the Building Materials subindustry, Summit Materials's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Summit Materials's Price-to-Projected-FCF Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Summit Materials's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Summit Materials's Price-to-Projected-FCF falls into.



Summit Materials Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Summit Materials's Free Cash Flow(6 year avg) = $97.66.

Summit Materials's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*97.66096+4218.637*0.8)/167.512
=25.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Summit Materials  (NYSE:SUM) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Summit Materials's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=39.46/25.697718828499
=1.54

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Summit Materials Intrinsic Value: Projected FCF Related Terms

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Summit Materials (Summit Materials) Business Description

Traded in Other Exchanges
Address
1801 California Street, Suite 3500, Denver, CO, USA, 80202
Summit Materials Inc is an aggregates supplier and cement producer in the United States. The company sells products that include aggregates, which it supplies across the United States, and in British Columbia, Canada, and cement, which it supplies to surrounding states along the Mississippi River from Minnesota to Louisiana. In addition to supplying aggregates to customers, the company uses a portion of its materials internally to produce ready-mix concrete and asphalt paving mix, which may be sold externally or used in its paving and related services businesses. The company operates in 22 U.S. states and in British Columbia, Canada and has assets in 21 U.S. states and in British Columbia, Canada through their platforms.
Executives
Craig Scott Anderson officer: EVP & Chief Financial Officer 1801 CALIFORNIA STREET, SUITE 3500, DENVER CO 80202
Christopher Burke Gaskill officer: See Remarks C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 08202
Kekin Ghelani officer: Chief Strategy&Growth Officer 1550 WYNKOOP, DENVER CO 80202
Anne K. Wade director C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
John Raymond Murphy director 233 S PATTERSON AVE, SPRINGFIELD MO 65802
Anne P Noonan director, officer: President & CEO 25435 HARVARD RD, BEACHWOOD OH 44122
Tamla Oates-forney director 800 CAPITOL STREET 3000, HOUSTON TX 77002
Deon Macmillan officer: See Remarks C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 08202
Karli S. Anderson officer: See Remarks 1660 WYNKOOP STREET, SUITE 1000, DENVER CO 80202
Howard L Lance director C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Joseph S Cantie director C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098
Anne Lee Benedict officer: See Remarks C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Brian James Harris officer: EVP & Chief Financial Officer C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Mikel Shane Evans officer: See Remarks C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Longleaf Partners Funds Trust 10 percent owner C/O SOUTHEASTERN ASSET MANAGEMENT, 6410 POPLAR AVE, SUITE 900, MEMPHIS TN 38119