Summit Materials Rated High by Small-Cap Growth Investor

Summit Materials receives a 59% rating from the Small-Cap Growth Investor model. Despite solid fundamentals, the company shows weaknesses in profit margins and sales growth compared to last year, which could impact investor sentiment.

Date: 31-12-2024

AI Rating: 4

Rating Overview

Summit Materials Inc (SUM) is analyzed using the Small-Cap Growth Investor model, which assesses small-cap stocks for robust fundamentals and price performance. It has received a 59% score based on various financial metrics.

Earnings Per Share (EPS)

The analysis does not provide specific data or conclusions regarding EPS.

Revenue Growth

The company has failed the test comparing sales and EPS growth to the same period last year, indicating potential stagnation or decline in revenue growth, which may negatively affect stock prices.

Profit Margins

Profit margin is marked as a fail, suggesting that the company has either low or declining profitability, which is a concern for investors as it affects the net income that can be achieved.

Free Cash Flow (FCF)

No specific mention of Free Cash Flow is present in the analysis.

Return on Equity (ROE)

The report does not address Return on Equity directly.

Overall Assessment

Despite some positive aspects, like insider holdings and cash flow consistency, the multiple failures in critical profitability and growth areas indicate a challenging outlook for SUM. Such weaknesses in profit margin and revenue growth could lead to decreased interest from investors and downward pressure on the stock price.

Stocks: SUM