SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - NYSE:SSD - US8290731053 - Common Stock
183.97 USD
-0.2 (-0.11%)
We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 41 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. SSD is quite expensive at the moment. It does show a decent growth rate. With these ratings, SSD could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year SSD was profitable.
In the past year SSD had a positive cash flow from operations.
SSD had positive earnings in each of the past 5 years.
Each year in the past 5 years SSD had a positive operating cash flow.
1.2 Ratios
SSD has a better Return On Assets (11.15%) than 75.61% of its industry peers.
Looking at the Return On Equity, with a value of 17.12%, SSD is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
The Return On Invested Capital of SSD (12.79%) is better than 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROIC | 12.79% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.85%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
1.3 Margins
Looking at the Profit Margin, with a value of 14.53%, SSD is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Profit Margin of SSD has grown nicely.
SSD's Operating Margin of 19.62% is amongst the best of the industry. SSD outperforms 80.49% of its industry peers.
SSD's Operating Margin has improved in the last couple of years.
SSD has a Gross Margin of 46.13%. This is amongst the best in the industry. SSD outperforms 97.56% of its industry peers.
SSD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% |
OM growth 3Y-5.84%
OM growth 5Y4.8%
PM growth 3Y-5.18%
PM growth 5Y4.13%
GM growth 3Y-1.43%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SSD is still creating some value.
The number of shares outstanding for SSD has been reduced compared to 1 year ago.
The number of shares outstanding for SSD has been reduced compared to 5 years ago.
SSD has a better debt/assets ratio than last year.
2.2 Solvency
SSD has an Altman-Z score of 6.87. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD has a Altman-Z score of 6.87. This is amongst the best in the industry. SSD outperforms 80.49% of its industry peers.
The Debt to FCF ratio of SSD is 2.30, which is a good value as it means it would take SSD, 2.30 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.30, SSD is doing good in the industry, outperforming 68.29% of the companies in the same industry.
SSD has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.18, SSD is doing good in the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 6.87 |
ROIC/WACC1.26
WACC10.12%
2.3 Liquidity
SSD has a Current Ratio of 3.37. This indicates that SSD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.37, SSD belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
A Quick Ratio of 1.80 indicates that SSD should not have too much problems paying its short term obligations.
SSD has a Quick ratio of 1.80. This is in the better half of the industry: SSD outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
SSD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
SSD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.95%.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)0.51%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%6.93%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%5.71%
3.2 Future
The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y5.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.47, the valuation of SSD can be described as rather expensive.
SSD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SSD to the average of the S&P500 Index (27.41), we can say SSD is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.38, SSD is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SSD.
When comparing the Price/Forward Earnings ratio of SSD to the average of the S&P500 Index (22.88), we can say SSD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
SSD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SSD is more expensive than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.96 | ||
| EV/EBITDA | 14.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SSD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)1.14
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, SSD is not a good candidate for dividend investing.
SSD's Dividend Yield is comparable with the industry average which is at 1.13.
Compared to an average S&P500 Dividend Yield of 2.38, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.15%.
SSD has paid a dividend for at least 10 years, which is a reliable track record.
SSD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.15%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
14.26% of the earnings are spent on dividend by SSD. This is a low number and sustainable payout ratio.
The dividend of SSD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.26%
EPS Next 2Y8.98%
EPS Next 3YN/A
NYSE:SSD (9/19/2025, 10:17:49 AM)
183.97
-0.2 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners100.91%
Inst Owner Change2.32%
Ins Owners0.25%
Ins Owner Change0.1%
Market Cap7.66B
Analysts80
Price Target193.8 (5.34%)
Short Float %2.94%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.26%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.48%
Min EPS beat(2)8.03%
Max EPS beat(2)16.92%
EPS beat(4)3
Avg EPS beat(4)4.84%
Min EPS beat(4)-8.04%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)0%
EPS beat(12)8
Avg EPS beat(12)10.83%
EPS beat(16)11
Avg EPS beat(16)14.36%
Revenue beat(2)2
Avg Revenue beat(2)2.6%
Min Revenue beat(2)0.96%
Max Revenue beat(2)4.24%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)4.24%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)2.1%
Revenue beat(16)11
Avg Revenue beat(16)1.73%
PT rev (1m)0%
PT rev (3m)3.26%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)1.73%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 20.38 | ||
| P/S | 3.37 | ||
| P/FCF | 46.96 | ||
| P/OCF | 21.76 | ||
| P/B | 3.97 | ||
| P/tB | 7.89 | ||
| EV/EBITDA | 14.69 |
EPS(TTM)7.84
EY4.26%
EPS(NY)9.03
Fwd EY4.91%
FCF(TTM)3.92
FCFY2.13%
OCF(TTM)8.45
OCFY4.6%
SpS54.65
BVpS46.37
TBVpS23.31
PEG (NY)2.47
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROCE | 17.22% | ||
| ROIC | 12.79% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 23% | ||
| OM | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% | ||
| FCFM | 7.17% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.85%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
ROICexc(3y)17.6%
ROICexc(5y)21.28%
ROICexgc(3y)31.83%
ROICexgc(5y)32.34%
ROCE(3y)20.29%
ROCE(5y)22.96%
ROICexcg growth 3Y-9.49%
ROICexcg growth 5Y1.88%
ROICexc growth 3Y-19.5%
ROICexc growth 5Y-3.81%
OM growth 3Y-5.84%
OM growth 5Y4.8%
PM growth 3Y-5.18%
PM growth 5Y4.13%
GM growth 3Y-1.43%
GM growth 5Y1.2%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 214.26% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 49.35% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 6.87 |
F-Score5
WACC10.12%
ROIC/WACC1.26
Cap/Depr(3y)146.81%
Cap/Depr(5y)130.96%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.28%
Profit Quality(3y)81.36%
Profit Quality(5y)74.6%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%6.93%
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.95%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%5.71%
Revenue Next Year5.06%
Revenue Next 2Y5.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.67%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-23.26%
OCF growth 3Y30.75%
OCF growth 5Y10.45%