Summit Materials Inc (NYSE:SUM)
August 1st, 2018
Summit Materials Inc finished Monday’s trading session down 16.33%, a $4.10 decrease to close on $21.01. As well as the drop in value, Summit Materials Inc hit a new 52 week low of $20.50, breaking the previous low of $24.17 from earlier this March. Despite the drop in value, trading volumes were solid at 640% of normal which can indicate investor opportunities. Be aware that the Altman Z-Score1 (An indicator of the probability for a 2-year bankruptcy) is below the recommended threshold of 1.8%, and calculated to be 1.40.
SUM was outperformed by the rest of the Materials sector which went down only 0.97%.
Forecasts from 12 analysts indicates that Summit Materials Inc could grow significantly (74%), while Finbox has calculated (with low uncertainty) a fair value price of $21.25.
Summit Materials Inc Info
Summit Materials, Inc., together with its subsidiaries, produces and sells construction materials and related downstream products. Its products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products. The company also provides paving and related services to private and public infrastructure sectors. In addition, it operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminal. The company operates in the United States, British Columbia, and Canada. Summit Materials, Inc. was founded in 2009 and is headquartered in Denver, Colorado.
All amounts in USD unless otherwise indicated
(1) The Altman Z-Score calculation was first published in 1968 by Edward I. Altman, and is used for predicting the probability that a firm will go into bankruptcy within two years. An Altman Z-Score below 1.8 (Remember that Summit Materials Inc’s score is 1.40) is the trigger to be alert for this situation. Some analysts believe this score is less relevant for some companies, in particular companies operating to accumulate users that may run at huge losses to scale up.
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