SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
179.04 USD
+6.03 (+3.49%)
179.04 USD
0 (0%)
SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 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 quite expensive at the moment. It does show a decent growth rate. This makes SSD very considerable 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.
Each year in the past 5 years SSD has been profitable.
Each year in the past 5 years SSD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SSD (11.31%) is better than 76.19% of its industry peers.
SSD has a Return On Equity of 17.16%. This is in the better half of the industry: SSD outperforms 64.29% of its industry peers.
SSD has a better Return On Invested Capital (12.57%) 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 12.61%.
| 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
SSD has a Profit Margin of 14.90%. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
In the last couple of years the Profit Margin of SSD has grown nicely.
SSD has a better Operating Margin (19.35%) than 78.57% 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 97.62% 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
SSD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SSD has less shares outstanding than it did 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 6.73. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SSD (6.73) is better than 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.
The Debt to FCF ratio of SSD (1.55) is better than 80.95% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SSD is not too dependend on debt financing.
The Debt to Equity ratio of SSD (0.17) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.73 |
ROIC/WACC1.27
WACC9.91%
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.
With an excellent Current ratio value of 3.35, SSD belongs to the best of the industry, outperforming 83.33% 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 76.19% of its industry peers.
| 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.
SSD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
Looking at the last year, SSD shows a small growth in Revenue. The Revenue has grown by 4.26% in the last 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.
Based on estimates for the next years, SSD will show a small growth in Revenue. The Revenue will grow by 4.88% 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 2Y4.38%
Revenue Next 3Y4.88%
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
SSD is valuated rather expensively with a Price/Earnings ratio of 21.81.
The rest of the industry has a similar Price/Earnings ratio as SSD.
The average S&P500 Price/Earnings ratio is at 27.19. SSD is around the same levels.
A Price/Forward Earnings ratio of 20.02 indicates a rather expensive valuation of SSD.
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 (23.92), we can say SSD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 20.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SSD.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.07 | ||
| EV/EBITDA | 13.98 |
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.
SSD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)1.06
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, SSD is not a good candidate for dividend investing.
SSD's Dividend Yield is comparable with the industry average which is at 0.71.
Compared to an average S&P500 Dividend Yield of 1.92, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
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%
179.04
+6.03 (+3.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.12%
Inst Owner Change0.19%
Ins Owners0.21%
Ins Owner Change-0.47%
Market Cap7.42B
Revenue(TTM)2.31B
Net Income(TTM)344.31M
Analysts77.5
Price Target198.65 (10.95%)
Short Float %2.61%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)0%
PT rev (3m)1.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 20.02 | ||
| P/S | 3.21 | ||
| P/FCF | 31.07 | ||
| P/OCF | 17.73 | ||
| P/B | 3.7 | ||
| P/tB | 7.03 | ||
| EV/EBITDA | 13.98 |
EPS(TTM)8.21
EY4.59%
EPS(NY)8.94
Fwd EY4.99%
FCF(TTM)5.76
FCFY3.22%
OCF(TTM)10.1
OCFY5.64%
SpS55.74
BVpS48.4
TBVpS25.48
PEG (NY)2.75
PEG (5Y)1.06
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 | 6.73 |
F-Score7
WACC9.91%
ROIC/WACC1.27
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.
Can you provide the valuation status for SIMPSON MANUFACTURING CO INC?
ChartMill assigns a valuation rating of 2 / 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.