SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
169.47 USD
+0.43 (+0.25%)
169.47 USD
0 (0%)
SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, SSD is valued expensive at the moment. These ratings could make SSD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
SSD had positive earnings in the past year.
In the past year SSD had a positive cash flow from operations.
Each year in the past 5 years SSD has been profitable.
SSD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSD has a Return On Assets of 11.31%. This is in the better half of the industry: SSD outperforms 75.61% of its industry peers.
SSD has a Return On Equity of 17.16%. This is in the better half of the industry: SSD outperforms 65.85% of its industry peers.
SSD's Return On Invested Capital of 12.57% is fine compared to the rest of the industry. SSD outperforms 70.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SSD is above the industry average of 12.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.31% | ||
| ROE | 17.16% | ||
| ROIC | 12.57% |
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
The Profit Margin of SSD (14.90%) is better than 78.05% of its industry peers.
In the last couple of years the Profit Margin of SSD has grown nicely.
The Operating Margin of SSD (19.35%) is better than 78.05% of its industry peers.
In the last couple of years the Operating Margin of SSD has grown nicely.
SSD has a better Gross Margin (46.02%) than 97.56% of its industry peers.
In the last couple of years the Gross Margin of SSD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.35% | ||
| PM (TTM) | 14.9% | ||
| GM | 46.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SSD is creating some value.
Compared to 1 year ago, SSD has less shares outstanding
SSD has less shares outstanding than it did 5 years ago.
SSD has a better debt/assets ratio than last year.
2.2 Solvency
SSD has an Altman-Z score of 6.50. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.50, SSD is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
SSD has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
The Debt to FCF ratio of SSD (1.55) is better than 80.49% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SSD is not too dependend on debt financing.
SSD has a better Debt to Equity ratio (0.17) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.5 |
ROIC/WACC1.34
WACC9.36%
2.3 Liquidity
SSD has a Current Ratio of 3.35. 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 3.35, SSD belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that SSD should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.88, SSD is doing good in the industry, outperforming 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.45% over the past year.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.26% in the past year.
SSD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.45% yearly.
EPS 1Y (TTM)8.45%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%16.74%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%6.19%
3.2 Future
SSD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
The Revenue is expected to grow by 4.88% on average over the next years.
EPS Next Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.38%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.64 indicates a rather expensive valuation of SSD.
SSD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SSD to the average of the S&P500 Index (26.49), we can say SSD is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.95, which indicates a rather expensive current valuation of SSD.
The rest of the industry has a similar Price/Forward Earnings ratio as SSD.
SSD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SSD.
SSD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.41 | ||
| EV/EBITDA | 13.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SSD does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)1
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.69%, which is pretty low.
SSD's Dividend Yield is comparable with the industry average which is at 1.31.
Compared to an average S&P500 Dividend Yield of 2.31, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.15%.
SSD has been paying a dividend for at least 10 years, so it has 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
13.76% 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.
DP13.76%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
169.47
+0.43 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change-3.4%
Ins Owners0.24%
Ins Owner Change-0.3%
Market Cap7.03B
Revenue(TTM)2.31B
Net Income(TTM)344.31M
Analysts77.5
Price Target198.65 (17.22%)
Short Float %2.83%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP13.76%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)5.85%
Max EPS beat(2)8.03%
EPS beat(4)4
Avg EPS beat(4)8.31%
Min EPS beat(4)2.45%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)-0.62%
EPS beat(12)8
Avg EPS beat(12)8.46%
EPS beat(16)12
Avg EPS beat(16)15.04%
Revenue beat(2)2
Avg Revenue beat(2)3.15%
Min Revenue beat(2)2.06%
Max Revenue beat(2)4.24%
Revenue beat(4)4
Avg Revenue beat(4)2.64%
Min Revenue beat(4)0.96%
Max Revenue beat(4)4.24%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)8
Avg Revenue beat(12)1.94%
Revenue beat(16)12
Avg Revenue beat(16)2.63%
PT rev (1m)-2.14%
PT rev (3m)2.5%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-14.03%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.95 | ||
| P/S | 3.04 | ||
| P/FCF | 29.41 | ||
| P/OCF | 16.78 | ||
| P/B | 3.5 | ||
| P/tB | 6.65 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)8.21
EY4.84%
EPS(NY)8.94
Fwd EY5.28%
FCF(TTM)5.76
FCFY3.4%
OCF(TTM)10.1
OCFY5.96%
SpS55.74
BVpS48.4
TBVpS25.48
PEG (NY)2.6
PEG (5Y)1
Graham Number94.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.31% | ||
| ROE | 17.16% | ||
| ROCE | 16.92% | ||
| ROIC | 12.57% | ||
| ROICexc | 14.16% | ||
| ROICexgc | 23.81% | ||
| OM | 19.35% | ||
| PM (TTM) | 14.9% | ||
| GM | 46.02% | ||
| FCFM | 10.34% |
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%
ROICexgc growth 3Y-9.49%
ROICexgc 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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 201.99% | ||
| Cap/Sales | 7.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.11% | ||
| Profit Quality | 69.39% | ||
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 6.5 |
F-Score7
WACC9.36%
ROIC/WACC1.34
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)8.45%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%16.74%
EPS Next Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%6.19%
Revenue Next Year5.11%
Revenue Next 2Y4.38%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
EBIT growth 1Y4.04%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year25.17%
EBIT Next 3Y14.03%
EBIT Next 5YN/A
FCF growth 1Y-47.08%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-21.66%
OCF growth 3Y30.75%
OCF growth 5Y10.45%
SIMPSON MANUFACTURING CO INC / SSD FAQ
Can you provide the ChartMill fundamental rating for SIMPSON MANUFACTURING CO INC?
ChartMill assigns a fundamental rating of 6 / 10 to SSD.
What is the valuation status of SIMPSON MANUFACTURING CO INC (SSD) stock?
ChartMill assigns a valuation rating of 3 / 10 to SIMPSON MANUFACTURING CO INC (SSD). This can be considered as Overvalued.
How profitable is SIMPSON MANUFACTURING CO INC (SSD) stock?
SIMPSON MANUFACTURING CO INC (SSD) has a profitability rating of 7 / 10.
What is the valuation of SIMPSON MANUFACTURING CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SIMPSON MANUFACTURING CO INC (SSD) is 20.64 and the Price/Book (PB) ratio is 3.5.
How financially healthy is SIMPSON MANUFACTURING CO INC?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.