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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, SSD is valued expensive at the moment. These ratings could make SSD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year SSD was profitable.
SSD had a positive operating cash flow in the past year.
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
The Return On Assets of SSD (14.69%) is better than 82.05% of its industry peers.
Looking at the Return On Equity, with a value of 23.09%, SSD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SSD's Return On Invested Capital of 16.73% is fine compared to the rest of the industry. SSD outperforms 74.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 13.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 23.09% | ||
| ROIC | 16.73% |
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 (14.87%) is better than 82.05% of its industry peers.
SSD's Profit Margin has improved in the last couple of years.
SSD has a Operating Margin of 19.80%. This is in the better half of the industry: SSD outperforms 79.49% of its industry peers.
SSD's Operating Margin has improved in the last couple of years.
SSD has a better Gross Margin (46.39%) than 97.44% of its industry peers.
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 | 19.8% | ||
| PM (TTM) | 14.87% | ||
| GM | 46.39% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SSD is still creating some value.
The number of shares outstanding for SSD has been reduced compared to 1 year ago.
Compared to 5 years ago, SSD has less shares outstanding
SSD has a better debt/assets ratio than last year.
2.2 Solvency
SSD has an Altman-Z score of 7.37. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD has a Altman-Z score of 7.37. This is in the better half of the industry: SSD outperforms 79.49% of its industry peers.
The Debt to FCF ratio of SSD is 2.16, which is a good value as it means it would take SSD, 2.16 years of fcf income to pay off all of its debts.
SSD has a Debt to FCF ratio (2.16) which is in line with its industry peers.
SSD has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
SSD has a Debt to Equity ratio of 0.25. This is comparable to the rest of the industry: SSD outperforms 58.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 7.37 |
ROIC/WACC1.64
WACC10.18%
2.3 Liquidity
A Current Ratio of 3.69 indicates that SSD has no problem at all paying its short term obligations.
The Current ratio of SSD (3.69) is better than 84.62% of its industry peers.
A Quick Ratio of 2.21 indicates that SSD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.21, SSD is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
SSD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.23%.
SSD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.49% yearly.
The Revenue has grown by 25.57% in the past year. This is a very strong growth!
The Revenue has been growing by 15.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.23%
EPS 3Y24.65%
EPS 5Y23.49%
EPS Q2Q%-9.43%
Revenue 1Y (TTM)25.57%
Revenue growth 3Y20.42%
Revenue growth 5Y15.46%
Sales Q2Q%1.22%
3.2 Future
The Earnings Per Share is expected to grow by 5.45% on average over the next years.
SSD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y-7.78%
EPS Next 2Y1.67%
EPS Next 3Y5.45%
EPS Next 5YN/A
Revenue Next Year0.81%
Revenue Next 2Y2.96%
Revenue Next 3Y4.22%
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
Based on the Price/Earnings ratio of 24.41, the valuation of SSD can be described as rather expensive.
SSD's Price/Earnings ratio is in line with the industry average.
SSD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.20.
A Price/Forward Earnings ratio of 21.62 indicates a rather expensive valuation of SSD.
The rest of the industry has a similar Price/Forward Earnings ratio as SSD.
When comparing the Price/Forward Earnings ratio of SSD to the average of the S&P500 Index (24.00), we can say SSD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA ratio is in line with the industry average.
SSD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SSD is more expensive than 64.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.67 | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
The excellent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y1.67%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 0.94, SSD has a dividend in line with its industry peers.
With a Dividend Yield of 0.61, SSD pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.11%.
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)4.11%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SSD pays out 11.26% 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.
DP11.26%
EPS Next 2Y1.67%
EPS Next 3Y5.45%
SIMPSON MANUFACTURING CO INC
NYSE:SSD (11/22/2024, 4:15:01 PM)
After market: 184.751 -0.02 (-0.01%)184.77
+3.51 (+1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 21.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 23.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.8% | ||
| PM (TTM) | 14.87% | ||
| GM | 46.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.23%
EPS 3Y24.65%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.57%
Revenue growth 3Y20.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y