Should you consider SIMPSON MANUFACTURING CO INC (NYSE:SSD) for quality investing?

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 course 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.

A Deep Dive into SIMPSON MANUFACTURING CO INC's Quality Metrics.

• The 5-year revenue growth of SIMPSON MANUFACTURING CO INC has been remarkable, with 16.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 37.23%, SIMPSON MANUFACTURING CO INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 1.24, SIMPSON MANUFACTURING CO INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 91.47%, SIMPSON MANUFACTURING CO INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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.
• The EBIT 5-year growth of SIMPSON MANUFACTURING CO INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NYSE:SSD

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, SSD scores 6 out of 10 in our fundamental rating. SSD was compared to 45 industry peers in the Building Products industry. SSD gets an excellent profitability rating and is at the same time showing great financial health properties. SSD is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of SSD for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.