SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
179.85 USD
+0.81 (+0.45%)
179.85 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 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
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.
Each year in the past 5 years SSD had a positive operating cash flow.
1.2 Ratios
SSD's Return On Assets of 11.31% is fine compared to the rest of the industry. SSD outperforms 76.19% of its industry peers.
The Return On Equity of SSD (17.16%) is better than 64.29% of its industry peers.
SSD has a better Return On Invested Capital (12.57%) than 69.05% of its industry peers.
SSD had an Average Return On Invested Capital over the past 3 years of 15.07%. This is above the industry average of 12.63%.
| 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.
SSD's Profit Margin has improved in the last couple of years.
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.
The Gross Margin of SSD (46.02%) is better than 97.62% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SSD 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.
SSD has a Altman-Z score of 6.73. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
The Debt to FCF ratio of SSD is 1.55, which is an excellent value as it means it would take SSD, only 1.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SSD (1.55) is better 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.
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/WACC1.31
WACC9.6%
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's Current ratio of 3.35 is amongst the best of the industry. SSD outperforms 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.
With a decent Quick ratio value of 1.88, SSD is doing good in the industry, outperforming 76.19% 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.
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.
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
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
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 21.91, which indicates a rather expensive current valuation of SSD.
SSD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SSD to the average of the S&P500 Index (27.25), we can say SSD is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.12, SSD is valued on the expensive side.
SSD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, SSD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
SSD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.21 | ||
| 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)2.76
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 0.70.
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 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
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 2Y8.46%
EPS Next 3Y8.99%
179.85
+0.81 (+0.45%)
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 Cap7.46B
Revenue(TTM)2.31B
Net Income(TTM)344.31M
Analysts77.5
Price Target198.65 (10.45%)
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 | 21.91 | ||
| Fwd PE | 20.12 | ||
| P/S | 3.23 | ||
| P/FCF | 31.21 | ||
| P/OCF | 17.81 | ||
| P/B | 3.72 | ||
| P/tB | 7.06 | ||
| EV/EBITDA | 13.98 |
EPS(TTM)8.21
EY4.56%
EPS(NY)8.94
Fwd EY4.97%
FCF(TTM)5.76
FCFY3.2%
OCF(TTM)10.1
OCFY5.62%
SpS55.74
BVpS48.4
TBVpS25.48
PEG (NY)2.76
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
WACC9.6%
ROIC/WACC1.31
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.