Summit Materials (SUM) is hoping for a good year in 2019. But its debt load does pose challenges and its deleveraging efforts depend on price increases and better weather conditions. If everything goes well in 2019, the company may strengthen its balance sheet to some extent. A long-term investor may have to closely monitor progress this year before investing.
Exhibit: A Summit Materials Quarry
(Source: Summit Materials Website)
Summit Materials has seen fast growth via acquisitions. Since the end of 2014, its revenue has grown by 74% by the end of 2018