SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
168.19 USD
+1.94 (+1.17%)
168.19 USD
0 (0%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
SSD had a positive operating cash flow in the past year.
In the past 5 years SSD has always been profitable.
In the past 5 years SSD always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.31%, SSD is doing good in the industry, outperforming 75.61% of the companies in the same industry.
SSD has a better Return On Equity (17.16%) than 65.85% of its industry peers.
With a decent Return On Invested Capital value of 12.57%, SSD is doing good in the industry, outperforming 70.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 12.49%.
| 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
With a decent Profit Margin value of 14.90%, SSD is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Profit Margin of SSD has grown nicely.
SSD has a Operating Margin of 19.35%. This is in the better half of the industry: SSD outperforms 78.05% of its industry peers.
In the last couple of years the Operating Margin of SSD has grown nicely.
Looking at the Gross Margin, with a value of 46.02%, SSD belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
SSD's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for SSD has been reduced compared to 1 year ago.
SSD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
SSD has an Altman-Z score of 6.49. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SSD (6.49) is better than 75.61% 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.
Looking at the Debt to FCF ratio, with a value of 1.55, SSD belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
SSD has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, SSD is doing good in the industry, outperforming 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.49 |
ROIC/WACC1.34
WACC9.4%
2.3 Liquidity
A Current Ratio of 3.35 indicates that SSD has no problem at all paying 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.
SSD's Quick ratio of 1.88 is fine compared to the rest of the industry. SSD outperforms 78.05% 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.
Measured over the past years, SSD shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
The Revenue has been growing slightly by 4.26% in the past year.
Measured over the past years, SSD shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
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 9.34% yearly.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y8.09%
EPS Next 2Y8.88%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue Next Year5.15%
Revenue Next 2Y4.58%
Revenue Next 3Y5.12%
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
With a Price/Earnings ratio of 20.49, SSD is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as SSD.
SSD is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
SSD is valuated rather expensively with a Price/Forward Earnings ratio of 18.67.
SSD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SSD to the average of the S&P500 Index (36.12), we can say SSD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.67 |
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 | 29.3 | ||
| EV/EBITDA | 13.19 |
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)2.53
PEG (5Y)0.99
EPS Next 2Y8.88%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.73%, which is pretty low.
SSD's Dividend Yield is comparable with the industry average which is at 1.41.
Compared to an average S&P500 Dividend Yield of 2.41, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
SSD pays out 13.76% of its income as dividend. This is a sustainable payout ratio.
SSD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.76%
EPS Next 2Y8.88%
EPS Next 3Y9.34%
168.19
+1.94 (+1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-3.41%
Ins Owners0.24%
Ins Owner Change-0.3%
Market Cap7.00B
Revenue(TTM)2.31B
Net Income(TTM)344.31M
Analysts80
Price Target198.65 (18.11%)
Short Float %2.9%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)1.61%
PT rev (3m)2.5%
EPS NQ rev (1m)-13.21%
EPS NQ rev (3m)-14.03%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.67 | ||
| P/S | 3.03 | ||
| P/FCF | 29.3 | ||
| P/OCF | 16.72 | ||
| P/B | 3.49 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)8.21
EY4.88%
EPS(NY)9.01
Fwd EY5.36%
FCF(TTM)5.74
FCFY3.41%
OCF(TTM)10.06
OCFY5.98%
SpS55.52
BVpS48.21
TBVpS25.38
PEG (NY)2.53
PEG (5Y)0.99
Graham Number94.37
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 | 6.49 |
F-Score7
WACC9.4%
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 Y8.09%
EPS Next 2Y8.88%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%6.19%
Revenue Next Year5.15%
Revenue Next 2Y4.58%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
EBIT growth 1Y4.04%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.58%
EBIT Next 3YN/A
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 20.49 and the Price/Book (PB) ratio is 3.49.
How financially healthy is SIMPSON MANUFACTURING CO INC?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.