SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - NYSE:SSD - US8290731053 - Common Stock
169.67 USD
-3.72 (-2.15%)
169.67 USD
0 (0%)
SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. SSD gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, SSD is valued expensive at the moment. These ratings would make SSD suitable 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.
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
SSD has a better Return On Assets (11.15%) than 75.61% of its industry peers.
Looking at the Return On Equity, with a value of 17.12%, SSD is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
The Return On Invested Capital of SSD (12.79%) is better than 70.73% 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 12.50%.
| 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
SSD's Profit Margin of 14.53% is fine compared to the rest of the industry. SSD outperforms 75.61% of its industry peers.
SSD's Profit Margin has improved in the last couple of years.
SSD has a Operating Margin of 19.62%. This is amongst the best in the industry. SSD outperforms 80.49% 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 46.13%, SSD belongs to the top of the industry, outperforming 97.56% 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 | 19.62% | ||
| 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
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.
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.61 indicates that SSD is not in any danger for bankruptcy at the moment.
SSD's Altman-Z score of 6.61 is fine compared to the rest of the industry. SSD outperforms 75.61% of its industry peers.
SSD has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as SSD would need 2.30 years to pay back of all of its debts.
SSD's Debt to FCF ratio of 2.30 is fine compared to the rest of the industry. SSD outperforms 68.29% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that SSD is not too dependend on debt financing.
SSD has a better Debt to Equity ratio (0.18) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 6.61 |
ROIC/WACC1.42
WACC9.02%
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.
Looking at the Current ratio, with a value of 3.37, SSD belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.80, SSD is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
SSD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.26% in the past year.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
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 9.34% yearly.
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
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
SSD is valuated rather expensively with a Price/Earnings ratio of 20.67.
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 (26.13), we can say SSD is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.83 indicates a rather expensive valuation of SSD.
The rest of the industry has a similar Price/Forward Earnings ratio as SSD.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, SSD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 18.83 |
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 indicates a slightly more expensive valuation: SSD is more expensive than 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.31 | ||
| EV/EBITDA | 13.85 |
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)2.56
PEG (5Y)1
EPS Next 2Y8.88%
EPS Next 3Y9.34%
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 1.27.
With a Dividend Yield of 0.67, SSD pays less dividend than the S&P500 average, which is at 2.39.
| 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
14.26% 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.
DP14.26%
EPS Next 2Y8.88%
EPS Next 3Y9.34%
169.67
-3.72 (-2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-1.26%
Ins Owners0.24%
Ins Owner Change0.1%
Market Cap7.06B
Revenue(TTM)2.31B
Net Income(TTM)330.39M
Analysts80
Price Target202.98 (19.63%)
Short Float %2.65%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)4.74%
PT rev (3m)8.15%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 18.83 | ||
| P/S | 3.1 | ||
| P/FCF | 43.31 | ||
| P/OCF | 20.07 | ||
| P/B | 3.66 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)8.21
EY4.84%
EPS(NY)9.01
Fwd EY5.31%
FCF(TTM)3.92
FCFY2.31%
OCF(TTM)8.45
OCFY4.98%
SpS54.65
BVpS46.37
TBVpS23.31
PEG (NY)2.56
PEG (5Y)1
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 | 6.61 |
F-Score5
WACC9.02%
ROIC/WACC1.42
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 2 / 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 20.67 and the Price/Book (PB) ratio is 3.66.
How financially healthy is SIMPSON MANUFACTURING CO INC?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.