SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
NYSE:SSD - New York Stock Exchange, Inc. - US8290731053 - Common Stock - Currency: USD
Taking everything into account, SSD scores 6 out of 10 in our fundamental rating. 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.
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.
In the past 5 years SSD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SSD (11.50%) is better than 70.73% of its industry peers.
With a decent Return On Equity value of 17.44%, SSD is doing good in the industry, outperforming 63.41% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.37%, SSD is doing good in the industry, outperforming 68.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SSD is above the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 17.44% | ||
| ROIC | 13.37% |
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 14.49%, SSD is doing good in the industry, outperforming 78.05% of the companies in the same industry.
SSD's Profit Margin has improved in the last couple of years.
SSD's Operating Margin of 19.63% is amongst the best of the industry. SSD outperforms 82.93% of its industry peers.
SSD's Operating Margin has improved in the last couple of years.
SSD has a Gross Margin of 46.12%. 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 | 19.63% | ||
| PM (TTM) | 14.49% | ||
| GM | 46.12% |
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.
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 6.85. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD's Altman-Z score of 6.85 is amongst the best of the industry. SSD outperforms 80.49% of its industry peers.
SSD has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as SSD would need 2.59 years to pay back of all of its debts.
SSD has a better Debt to FCF ratio (2.59) than 70.73% of its industry peers.
SSD has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, SSD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 6.85 |
ROIC/WACC1.36
WACC9.84%
2.3 Liquidity
SSD has a Current Ratio of 3.17. This indicates that SSD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SSD (3.17) is better than 82.93% of its industry peers.
SSD has a Quick Ratio of 1.54. This is a normal value and indicates that SSD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.54, SSD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The earnings per share for SSD have decreased by -3.88% in the last year.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.38%.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.88%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%4.52%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%1.57%
3.2 Future
The Earnings Per Share is expected to grow by 8.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.63%
Revenue Next 2Y4.83%
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
SSD is valuated rather expensively with a Price/Earnings ratio of 21.72.
SSD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. SSD is valued slightly cheaper when compared to this.
SSD is valuated rather expensively with a Price/Forward Earnings ratio of 18.59.
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 (21.76), we can say SSD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SSD is valued a bit more expensive than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.58 | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.05
EPS Next 2Y8.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, SSD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.14, SSD has a dividend in line with its industry peers.
With a Dividend Yield of 0.71, SSD pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
14.42% 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.
DP14.42%
EPS Next 2Y8.65%
EPS Next 3YN/A
166.83
-1.27 (-0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.91%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change1.63%
Market Cap6.98B
Analysts80
Price Target187.68 (12.5%)
Short Float %3.27%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.42%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.68%
Min EPS beat(2)2.45%
Max EPS beat(2)16.92%
EPS beat(4)2
Avg EPS beat(4)1.22%
Min EPS beat(4)-8.04%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)1.6%
EPS beat(12)8
Avg EPS beat(12)10.82%
EPS beat(16)11
Avg EPS beat(16)13.97%
Revenue beat(2)2
Avg Revenue beat(2)2.13%
Min Revenue beat(2)0.96%
Max Revenue beat(2)3.3%
Revenue beat(4)2
Avg Revenue beat(4)0.18%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)3.3%
Revenue beat(8)5
Avg Revenue beat(8)1.07%
Revenue beat(12)8
Avg Revenue beat(12)1.85%
Revenue beat(16)11
Avg Revenue beat(16)1.63%
PT rev (1m)0%
PT rev (3m)-2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 18.59 | ||
| P/S | 3.11 | ||
| P/FCF | 47.58 | ||
| P/OCF | 20.66 | ||
| P/B | 3.75 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 13.83 |
EPS(TTM)7.68
EY4.6%
EPS(NY)8.97
Fwd EY5.38%
FCF(TTM)3.51
FCFY2.1%
OCF(TTM)8.08
OCFY4.84%
SpS53.56
BVpS44.51
TBVpS22.78
PEG (NY)2.84
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 17.44% | ||
| ROCE | 18% | ||
| ROIC | 13.37% | ||
| ROICexc | 14.24% | ||
| ROICexgc | 23.6% | ||
| OM | 19.63% | ||
| PM (TTM) | 14.49% | ||
| GM | 46.12% | ||
| FCFM | 6.55% |
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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 223.77% | ||
| Cap/Sales | 8.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.32% | ||
| Profit Quality | 45.18% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 6.85 |
F-Score4
WACC9.84%
ROIC/WACC1.36
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)-3.88%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%4.52%
EPS Next Y7.64%
EPS Next 2Y8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%1.57%
Revenue Next Year3.63%
Revenue Next 2Y4.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.91%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year27.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-49.4%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-5.67%
OCF growth 3Y30.75%
OCF growth 5Y10.45%