JHIUF - Summit Materials: Still Cheap Still Worth An Optimistic View
2024-07-02 10:56:22 ET
Summary
- Now that the dust has settled following Summit Materials' acquisition of Argos USA, the company makes for an interesting prospect.
- The company is now the fourth-largest cement producer and sixth-largest aggregates producer in the US.
- Despite recent losses, Summit Materials is expected to see improved profitability and growth with strong catalysts in the construction industry.
Back in September of last year, one company that I performed a deep dive into was Summit Materials ( SUM ). The inspiration for the deep dive was news that the business had agreed to merge with Argos USA, a subsidiary of Cementos Argos ( CMTOY ), in a cash and stock transaction that would prove to be incredibly transformative. At the time, I ended up rating Cementos Argos a ‘hold’ because of the deal. However, the upside potential from the transaction, combined with how shares fell in response to the news, led me to rate Summit Materials a ‘buy’....
Summit Materials: Still Cheap, Still Worth An Optimistic View