Summit Materials

This is an US building materials company. My analysis showed that it is not a growth stock. Revenue growth was due to acquisitions that benefited from being in the uptrend part of the construction cycle.

Revenue growth did not translate into better operating performance. Without the one-off gains, current ROE would be in single digits.

The market priced SUM as a growth stock. Alternatively, the market thinks that the value of the reserves is not accounted for. In either case, the market is wrong.