SUM – Market expectations are for significant declines in Uniform ROA, but management is confident about operating margins, acquisitions, and market conditions

• Summit Materials, Inc. (SUM:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings with a 24.1x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about their pricing, cash balance, and competitive landscape
• Specifically, management may lack confidence in their ability to sustain growth, Greenfield development, and net income growth attributable to Summit Inc. Furthermore, they may be concerned about pricing and margin trends across their LOBs. Finally, they may be concerned about their competitive environment, and they may lack confidence in their ability to sustain their current cash balance.