SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
177.99 USD
+0.53 (+0.3%)
177.99 USD
0 (0%)
Taking everything into account, SSD scores 6 out of 10 in our fundamental rating. SSD was compared to 42 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making SSD a very profitable company, without any liquidiy or solvency issues. SSD is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make SSD suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year SSD was profitable.
- SSD had a positive operating cash flow in the past year.
- In the past 5 years SSD has always been profitable.
- SSD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 11.31%, SSD is doing good in the industry, outperforming 76.19% of the companies in the same industry.
- With a decent Return On Equity value of 17.16%, SSD is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- The Return On Invested Capital of SSD (12.57%) is better than 69.05% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 12.68%.
| 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 78.57% of its industry peers.
- In the last couple of years the Profit Margin of SSD has grown nicely.
- Looking at the Operating Margin, with a value of 19.35%, SSD is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- In the last couple of years the Operating Margin of SSD has grown nicely.
- The Gross Margin of SSD (46.02%) is better than 97.62% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SSD is still creating some value.
- SSD has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SSD has less shares outstanding
- The debt/assets ratio for SSD has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.69 indicates that SSD is not in any danger for bankruptcy at the moment.
- SSD has a Altman-Z score of 6.69. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
- 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.
- SSD has a better Debt to FCF ratio (1.55) than 80.95% of its industry peers.
- SSD has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.17, SSD is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.69 |
ROIC/WACC1.4
WACC9%
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.
- SSD has a better Current ratio (3.35) than 83.33% of its industry peers.
- SSD has a Quick Ratio of 1.88. This is a normal value and indicates that SSD is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of SSD (1.88) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
- SSD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
- The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
- Looking at the last year, SSD shows a small growth in Revenue. The Revenue has grown by 4.26% in the last year.
- The Revenue has been growing by 14.45% on average over the past years. This is quite good.
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
- Based on estimates for the next years, SSD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.99% on average per year.
- Based on estimates for the next years, SSD will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.27%
Revenue Next 3Y4.8%
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
- The Price/Earnings ratio is 21.68, which indicates a rather expensive current valuation of SSD.
- The rest of the industry has a similar Price/Earnings ratio as SSD.
- SSD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 19.91, the valuation of SSD can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as SSD.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. SSD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
- SSD's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SSD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.89 | ||
| EV/EBITDA | 13.86 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.73
PEG (5Y)1.05
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.62%, SSD is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.66, SSD has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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.
- SSD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.76%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
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.
Can you provide the valuation status for SIMPSON MANUFACTURING CO INC?
ChartMill assigns a valuation rating of 3 / 10 to SIMPSON MANUFACTURING CO INC (SSD). This can be considered as Overvalued.
What is the profitability of SSD stock?
SIMPSON MANUFACTURING CO INC (SSD) has a profitability rating of 7 / 10.
What is the financial health of SIMPSON MANUFACTURING CO INC (SSD) stock?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.
Can you provide the expected EPS growth for SSD stock?
The Earnings per Share (EPS) of SIMPSON MANUFACTURING CO INC (SSD) is expected to grow by 7.94% in the next year.