Rock Products

FEB 2019

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

Issue link: https://rock.epubxp.com/i/1077150

Contents of this Issue

Navigation

Page 35 of 113

32 • ROCK products • February 2019 www.rockproducts.com Aggregate Industry Market Report Aggregate Industry Market Report In This Quarterly Report, Provided Exclusively to Rock Products , Capstone Head- waters Provides Insight Into Merger & Acquisitions (M&A), Capital Markets Trends, Aggregate Production and Pricing Through Q3 2018. By Darin Good and Brian Krehbiel Figure 1: Public ValuaƟon MulƟples US Dollars in Millions EBITDA Enterprise Value/ Company Name TEV Revenue EBITDA Margin Revenue EBITDA LafargeHolcim Ltd. 44,311 26,656 1,284 4.8% 1.66x 34.5x CRH Plc 37,602 30,054 3,733 12.4% 1.25x 10.1x Cemex SAB de CV 24,107 14,452 2,592 17.9% 1.67x 9.3x HeidelbergCement AG 28,109 21,035 3,139 14.9% 1.34x 9.0x MDU Resources Group, Inc. 6,890 4,487 621 13.8% 1.54x 11.1x Vulcan Materials Company 17,824 4,272 1,075 25.2% 4.17x 16.6x MarƟn MarieƩa Materials, Inc. 14,652 4,195 1,076 25.6% 3.49x 13.6x Buzzi Unicem S.p.A. 4,331 3,174 600 18.9% 1.36x 7.2x Summit Materials, Inc. 3,812 2,100 400 19.1% 1.82x 9.5x Eagle Materials Inc. 4,676 1,419 423 29.8% 3.29x 11.1x U.S. Concrete, Inc. 1,485 1,478 158 10.7% 1.00x 9.4x Mean 17,592 10,302 1,373 17.6% 2.1x 12.9x Median 14,652 4,272 1,075 17.9% 1.7x 10.1x *TEV = Total Enterprise Value (Market CapitalizaƟon + Net Debt) Sources: FactSet and Capital IQ C apstone Headwaters' Building Products & Construction Services Team advises industry business owners, entre- preneurs, executives and investors in the areas of merger and acquisitions, capital raising and various special situa- tions advisory. Due to its background and laser focus within the industry, Capstone Headwaters is uniquely qualified and has an unparalleled track record of successfully representing Building Products & Construction companies. Public Valuation Commentary Figure 1 includes the constituents of Capstone Headwa- ters Aggregates Materials Index as of 9/30/2018. Average EBITDA multiples declined from 14.4x at the end of Q2 2018 to 12.9x at the end of Q3 2018. Although revenue averages increased from Q2, EBITDA increased at a slower pace reducing the average EBITDA margin by 10 basis points to 17.6 percent. Aggregates Performance 2018 YTD Total Returns (Figure 2) Aggregate Materials Index – (14.0%) S&P 500 – 10.6% Dow Jones Industrial Average – 7.0%

Articles in this issue

Links on this page

Archives of this issue

view archives of Rock Products - FEB 2019