Summit Materials: Investor Day Outlines The Next Leg Of Growth

Summary

  • Summit Materials has presented some ambitious but achievable medium-term financial targets.
  • While inflation is a headwind, the resilient demand environment and Summit's ability to take pricing should help.
  • With a stronger balance sheet also allowing for more aggressive capital allocation, I see the relative valuation gap narrowing.

Inspector discussing protocol with aggregates specialist

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Summit Materials (SUM), a leading North American materials-based company, looks to have already made meaningful progress just a year into its medium-term strategy, allowing for a more aggressive capital allocation approach going forward. With the medium-term EBITDA margin bridge

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Analyst with a keen interest in the global markets, always sifting through company filings in search of compelling opportunities. Approach is heavily centered on the notion that one needs to be non-consensus right in making investment decisions. A keen follower of value investing legends such as Peter Cundill, Seth Klarman, and more recently, Rupal Bhansali.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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