SIMPSON MANUFACTURING CO INC (SSD)
US8290731053 - Common Stock
SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 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. While showing a medium growth rate, SSD is valued expensive at the moment.
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.
SSD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSD's Return On Assets of 11.10% is fine compared to the rest of the industry. SSD outperforms 64.10% of its industry peers.
SSD has a Return On Equity of 17.32%. This is comparable to the rest of the industry: SSD outperforms 56.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.69%, SSD is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
SSD had an Average Return On Invested Capital over the past 3 years of 17.90%. This is above the industry average of 13.33%.
The last Return On Invested Capital (12.69%) for SSD is well below the 3 year average (17.90%), which needs to be investigated, but indicates that SSD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 17.32% | ||
| ROIC | 12.69% |
ROA(3y)14.79%
ROA(5y)14.36%
ROE(3y)22.4%
ROE(5y)20.26%
ROIC(3y)17.9%
ROIC(5y)17.14%
1.3 Margins
The Profit Margin of SSD (14.51%) is better than 79.49% of its industry peers.
In the last couple of years the Profit Margin of SSD has grown nicely.
SSD's Operating Margin of 19.39% is fine compared to the rest of the industry. SSD outperforms 76.92% of its industry peers.
SSD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.96%, SSD belongs to the top of the industry, outperforming 97.44% 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 | 19.39% | ||
| PM (TTM) | 14.51% | ||
| GM | 45.96% |
OM growth 3Y2.89%
OM growth 5Y6.73%
PM growth 3Y2.73%
PM growth 5Y6.38%
GM growth 3Y1.22%
GM growth 5Y1.15%
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.
Compared to 1 year ago, SSD has less shares outstanding
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 6.29. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.29, SSD is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
SSD has a debt to FCF ratio of 4.90. This is a neutral value as SSD would need 4.90 years to pay back of all of its debts.
SSD has a Debt to FCF ratio of 4.90. This is in the lower half of the industry: SSD underperforms 61.54% of its industry peers.
SSD has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
SSD has a better Debt to Equity ratio (0.24) than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 6.29 |
ROIC/WACC1.21
WACC10.51%
2.3 Liquidity
A Current Ratio of 3.53 indicates that SSD has no problem at all paying its short term obligations.
The Current ratio of SSD (3.53) is better than 84.62% of its industry peers.
A Quick Ratio of 1.99 indicates that SSD should not have too much problems paying its short term obligations.
The Quick ratio of SSD (1.99) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for SSD have decreased by -9.23% in the last year.
Measured over the past years, SSD shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.49% on average per year.
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
SSD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.46% yearly.
EPS 1Y (TTM)-9.23%
EPS 3Y24.65%
EPS 5Y23.49%
EPS Q2Q%-9.43%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y20.42%
Revenue growth 5Y15.46%
Sales Q2Q%1.22%
3.2 Future
The Earnings Per Share is expected to grow by 5.26% on average over the next years.
Based on estimates for the next years, SSD will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
EPS Next Y-7.78%
EPS Next 2Y1.47%
EPS Next 3Y5.26%
EPS Next 5YN/A
Revenue Next Year0.81%
Revenue Next 2Y2.96%
Revenue Next 3Y3.89%
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.
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
With a Price/Earnings ratio of 21.01, SSD is valued on the expensive side.
SSD's Price/Earnings is on the same level as the industry average.
SSD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.34.
A Price/Forward Earnings ratio of 18.68 indicates a rather expensive valuation of SSD.
SSD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.61, SSD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.68 |
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 the industry average as 74.36% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.58 | ||
| EV/EBITDA | 13.37 |
4.3 Compensation for Growth
The excellent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y1.47%
EPS Next 3Y5.26%
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.68%, which is pretty low.
SSD's Dividend Yield is comparable with the industry average which is at 1.09.
Compared to an average S&P500 Dividend Yield of 2.33, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.11%.
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)4.11%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SSD pays out 14.37% of its income as dividend. This is a sustainable payout ratio.
The dividend of SSD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.37%
EPS Next 2Y1.47%
EPS Next 3Y5.26%
SIMPSON MANUFACTURING CO INC
NYSE:SSD (1/8/2025, 8:04:01 PM)
Premarket: 159.9 +0.82 (+0.52%)159.08
-2.48 (-1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.03%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change-1.1%
Market Cap6.71B
Analysts80
Price Target201.62 (26.74%)
Short Float %2.36%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Dividend Growth(5Y)4.11%
DP14.37%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.23%
Min EPS beat(2)-8.04%
Max EPS beat(2)-6.43%
EPS beat(4)0
Avg EPS beat(4)-9.54%
Min EPS beat(4)-14.87%
Max EPS beat(4)-6.43%
EPS beat(8)4
Avg EPS beat(8)8.53%
EPS beat(12)8
Avg EPS beat(12)17.29%
EPS beat(16)11
Avg EPS beat(16)14.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)2.85%
Revenue beat(8)4
Avg Revenue beat(8)1.59%
Revenue beat(12)8
Avg Revenue beat(12)2.62%
Revenue beat(16)11
Avg Revenue beat(16)2.3%
PT rev (1m)0%
PT rev (3m)2.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.68 | ||
| P/S | 3.03 | ||
| P/FCF | 70.58 | ||
| P/OCF | 26.7 | ||
| P/B | 3.61 | ||
| P/tB | 7.37 | ||
| EV/EBITDA | 13.37 |
EPS(TTM)7.57
EY4.76%
EPS(NY)8.51
Fwd EY5.35%
FCF(TTM)2.25
FCFY1.42%
OCF(TTM)5.96
OCFY3.75%
SpS52.57
BVpS44.05
TBVpS21.6
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 17.32% | ||
| ROCE | 17.06% | ||
| ROIC | 12.69% | ||
| ROICexc | 14.67% | ||
| ROICexgc | 25.92% | ||
| OM | 19.39% | ||
| PM (TTM) | 14.51% | ||
| GM | 45.96% | ||
| FCFM | 4.29% |
ROA(3y)14.79%
ROA(5y)14.36%
ROE(3y)22.4%
ROE(5y)20.26%
ROIC(3y)17.9%
ROIC(5y)17.14%
ROICexc(3y)22.28%
ROICexc(5y)21.97%
ROICexgc(3y)34.92%
ROICexgc(5y)31.94%
ROCE(3y)24.05%
ROCE(5y)23.03%
ROICexcg growth 3Y3.03%
ROICexcg growth 5Y8.58%
ROICexc growth 3Y-8.77%
ROICexc growth 5Y1.07%
OM growth 3Y2.89%
OM growth 5Y6.73%
PM growth 3Y2.73%
PM growth 5Y6.38%
GM growth 3Y1.22%
GM growth 5Y1.15%
F-Score5
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 191.73% | ||
| Cap/Sales | 7.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.14% | ||
| Profit Quality | 29.55% | ||
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 6.29 |
F-Score5
WACC10.51%
ROIC/WACC1.21
Cap/Depr(3y)115.32%
Cap/Depr(5y)108.26%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.33%
Profit Quality(3y)77.77%
Profit Quality(5y)89.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.23%
EPS 3Y24.65%
EPS 5Y23.49%
EPS Q2Q%-9.43%
EPS Next Y-7.78%
EPS Next 2Y1.47%
EPS Next 3Y5.26%
EPS Next 5YN/A
Revenue 1Y (TTM)1.31%
Revenue growth 3Y20.42%
Revenue growth 5Y15.46%
Sales Q2Q%1.22%
Revenue Next Year0.81%
Revenue Next 2Y2.96%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y-12.08%
EBIT growth 3Y23.9%
EBIT growth 5Y23.24%
EBIT Next Year6.33%
EBIT Next 3Y8.74%
EBIT Next 5YN/A
FCF growth 1Y-59.17%
FCF growth 3Y25.84%
FCF growth 5Y20.92%
OCF growth 1Y-14.15%
OCF growth 3Y27.18%
OCF growth 5Y21.68%