Summit Materials Inc
NYSE:SUM

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Summit Materials Inc
NYSE:SUM
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Price: 50.64 USD 0.1% Market Closed
Market Cap: 8.9B USD
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Operating Margin
Summit Materials Inc

12.6%
Current
11%
Average
5%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
12.6%
=
Operating Profit
474.5m
/
Revenue
3.8B

Operating Margin Across Competitors

Country US
Market Cap 8.9B USD
Operating Margin
13%
Country IE
Market Cap 64.4B USD
Operating Margin
13%
Country CH
Market Cap 49.1B CHF
Operating Margin
16%
Country IN
Market Cap 3.3T INR
Operating Margin
13%
Country US
Market Cap 34.9B USD
Operating Margin
18%
Country US
Market Cap 32.6B USD
Operating Margin
22%
Country DE
Market Cap 21.8B EUR
Operating Margin
32%
Country IN
Market Cap 1.7T INR
Operating Margin
16%
Country CN
Market Cap 128.8B CNY
Operating Margin
7%
Country IN
Market Cap 1.3T INR
Operating Margin
12%
Country DE
Market Cap 13.9B EUR
Operating Margin
32%
No Stocks Found

Summit Materials Inc
Glance View

Market Cap
8.9B USD
Industry
Construction
Economic Moat
None

In the heart of the construction materials industry, Summit Materials Inc. has carved out a formidable presence since its inception in 2009. Born during a period of financial crisis, the company was founded by Tom Hill, a seasoned veteran of the sector, with a vision to consolidate regional leaders into a dominant national player. Summit Materials operates primarily through three segments: aggregates, cement, and downstream products, such as asphalt and ready-mix concrete. This strategic trifurcation allows the company to maintain a diversified revenue stream, mitigating risks associated with cyclical downturns in any single product line. By acquiring and integrating smaller, often family-owned businesses across the United States and Canada, Summit enhances its market share and operational efficiencies, allowing it to compete and thrive against larger competitors. The magic of Summit’s financial performance hinges on its ability to source and supply essential materials needed for infrastructure development, commercial, and residential construction. The company's core strategy revolves around the vertical integration of its supply chain, ensuring cost control and quality management throughout the production process. Summit Materials extracts aggregates from its vast network of quarries, making it the crucial foundational element for asphalt, concrete, and road base logistics. Furthermore, it produces cement, crucially tied to economic development and infrastructure with a high barrier of entry due to its capital-intensive nature. Meanwhile, its downstream operations focus on taking these materials to market, crafting them into asphalt and ready-mix concrete used by contractors and developers in myriad construction projects. Through this comprehensive business model, Summit Materials not only positions itself as a critical player in the building blocks of the modern landscape but also captures value at every step of the construction supply chain.

SUM Intrinsic Value
43.38 USD
Overvaluation 14%
Intrinsic Value
Price

See Also

Discover More
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
12.6%
=
Operating Profit
474.5m
/
Revenue
3.8B
What is the Operating Margin of Summit Materials Inc?

Based on Summit Materials Inc's most recent financial statements, the company has Operating Margin of 12.6%.