SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - NYSE:SSD - US8290731053 - Common Stock
164.17 USD
-2.15 (-1.29%)
164.17 USD
0 (0%)
Overall SSD gets a fundamental rating of 6 out of 10. We evaluated SSD against 41 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. While showing a medium growth rate, SSD is valued expensive at the moment. This makes SSD very considerable for quality investing!
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.
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
SSD has a Return On Assets of 11.15%. This is in the better half of the industry: SSD outperforms 73.17% of its industry peers.
SSD has a better Return On Equity (17.12%) than 65.85% of its industry peers.
The Return On Invested Capital of SSD (12.79%) is better than 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROIC | 12.79% |
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 14.53%, SSD is doing good in the industry, outperforming 75.61% of the companies in the same industry.
SSD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 19.62%, SSD belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
In the last couple of years the Operating Margin of SSD has grown nicely.
With an excellent Gross Margin value of 46.13%, SSD belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
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 | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% |
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.
Compared to 1 year ago, SSD has less shares outstanding
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 6.39. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD has a better Altman-Z score (6.39) than 75.61% of its industry peers.
The Debt to FCF ratio of SSD is 2.30, which is a good value as it means it would take SSD, 2.30 years of fcf income to pay off all of its debts.
SSD has a Debt to FCF ratio of 2.30. This is in the better half of the industry: SSD outperforms 68.29% of its industry peers.
SSD has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
SSD's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. SSD outperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 6.39 |
ROIC/WACC1.36
WACC9.39%
2.3 Liquidity
SSD has a Current Ratio of 3.37. This indicates that SSD is financially healthy and has no problem in meeting its short term obligations.
SSD has a better Current ratio (3.37) than 85.37% of its industry peers.
SSD has a Quick Ratio of 1.80. 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 (1.80) is better than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 |
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.
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
Based on estimates for the next years, SSD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.34% on average per year.
Based on estimates for the next years, SSD will show a small growth in Revenue. The Revenue will grow by 5.12% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 20.00, the valuation of SSD can be described as rather expensive.
SSD's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. SSD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.22, SSD is valued on the expensive side.
SSD's Price/Forward Earnings ratio is in line with the industry average.
SSD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSD indicates a slightly more expensive valuation: SSD is more expensive than 63.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.91 | ||
| EV/EBITDA | 13.13 |
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)2.47
PEG (5Y)0.97
EPS Next 2Y8.88%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, SSD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.34, SSD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 14.26% 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.
DP14.26%
EPS Next 2Y8.88%
EPS Next 3Y9.34%
164.17
-2.15 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-3.5%
Ins Owners0.24%
Ins Owner Change-1.87%
Market Cap6.83B
Revenue(TTM)2.31B
Net Income(TTM)330.39M
Analysts80
Price Target202.98 (23.64%)
Short Float %2.65%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.26%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.48%
Min EPS beat(2)8.03%
Max EPS beat(2)16.92%
EPS beat(4)3
Avg EPS beat(4)4.84%
Min EPS beat(4)-8.04%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)0%
EPS beat(12)8
Avg EPS beat(12)10.83%
EPS beat(16)11
Avg EPS beat(16)14.36%
Revenue beat(2)2
Avg Revenue beat(2)2.6%
Min Revenue beat(2)0.96%
Max Revenue beat(2)4.24%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)4.24%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)2.1%
Revenue beat(16)11
Avg Revenue beat(16)1.73%
PT rev (1m)3.83%
PT rev (3m)4.74%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 18.22 | ||
| P/S | 3 | ||
| P/FCF | 41.91 | ||
| P/OCF | 19.42 | ||
| P/B | 3.54 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | 13.13 |
EPS(TTM)8.21
EY5%
EPS(NY)9.01
Fwd EY5.49%
FCF(TTM)3.92
FCFY2.39%
OCF(TTM)8.45
OCFY5.15%
SpS54.65
BVpS46.37
TBVpS23.31
PEG (NY)2.47
PEG (5Y)0.97
Graham Number92.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROCE | 17.22% | ||
| ROIC | 12.79% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 23% | ||
| OM | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% | ||
| FCFM | 7.17% |
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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 214.26% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 49.35% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 6.39 |
F-Score5
WACC9.39%
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)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 1Y0.4%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.67%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-23.26%
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 8 / 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 and the Price/Book (PB) ratio is 3.54.
How financially healthy is SIMPSON MANUFACTURING CO INC?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.