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Exploring SIMPSON MANUFACTURING CO INC (NYSE:SSD)s quality characteristics.

By Mill Chart

Last update: Aug 30, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SIMPSON MANUFACTURING CO INC (NYSE:SSD) is suited for quality investing. Investors should of couse do their own research, but we spotted SIMPSON MANUFACTURING CO INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:SSD may be interesting for quality investors.

  • SIMPSON MANUFACTURING CO INC has shown strong performance in revenue growth over the past 5 years, with a 16.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • SIMPSON MANUFACTURING CO INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 33.49% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 1.47, SIMPSON MANUFACTURING CO INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a robust Profit Quality (5-year) ratio of 91.47%, SIMPSON MANUFACTURING CO INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • SIMPSON MANUFACTURING CO INC has consistently achieved strong EBIT growth over the past 5 years, with a 28.03% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • SIMPSON MANUFACTURING CO INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NYSE:SSD

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, SSD scores 7 out of 10 in our fundamental rating. SSD was compared to 45 industry peers in the Building Products industry. SSD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, SSD is valued expensive at the moment. These ratings could make SSD a good candidate for quality investing.

Our latest full fundamental report of SSD contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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