SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
162.74 USD
+4.5 (+2.84%)
163.01 USD
+0.27 (+0.17%)
We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 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. SSD is quite expensive at the moment. It does show a decent growth rate. With these ratings, SSD could be worth investigating further 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.
In the past 5 years SSD always reported a positive cash flow from operatings.
1.2 Ratios
SSD's Return On Assets of 11.31% is fine compared to the rest of the industry. SSD outperforms 75.61% of its industry peers.
The Return On Equity of SSD (17.16%) is better than 65.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.57%, SSD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SSD is above the industry average of 12.49%.
| 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
With a decent Profit Margin value of 14.90%, SSD is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Profit Margin of SSD has grown nicely.
Looking at the Operating Margin, with a value of 19.35%, SSD is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
SSD's Operating Margin has improved in the last couple of years.
SSD has a Gross Margin of 46.02%. This is amongst the best in the industry. SSD outperforms 97.56% 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
SSD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 6.35. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD has a better Altman-Z score (6.35) than 75.61% 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.
Looking at the Debt to FCF ratio, with a value of 1.55, SSD belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
SSD has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, SSD is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.35 |
ROIC/WACC1.34
WACC9.39%
2.3 Liquidity
A Current Ratio of 3.35 indicates that SSD has no problem at all paying its short term obligations.
SSD has a better Current ratio (3.35) than 85.37% of its industry peers.
A Quick Ratio of 1.88 indicates that SSD should not have too much problems paying its short term obligations.
SSD's Quick ratio of 1.88 is fine compared to the rest of the industry. SSD outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.88 |
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
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
Measured over the past years, SSD shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
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
The Earnings Per Share is expected to grow by 9.34% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 19.82, SSD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SSD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.47. SSD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.06 indicates a rather expensive valuation of SSD.
SSD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SSD to the average of the S&P500 Index (34.42), we can say SSD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SSD is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as SSD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.35 | ||
| EV/EBITDA | 12.77 |
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)2.45
PEG (5Y)0.96
EPS Next 2Y8.88%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.73%, which is pretty low.
SSD's Dividend Yield is comparable with the industry average which is at 1.42.
With a Dividend Yield of 0.73, SSD pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.15%.
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)4.15%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
13.76% of the earnings are spent on dividend by SSD. This is a low number and sustainable payout ratio.
The dividend of SSD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.76%
EPS Next 2Y8.88%
EPS Next 3Y9.34%
162.74
+4.5 (+2.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-3.41%
Ins Owners0.24%
Ins Owner Change-0.3%
Market Cap6.77B
Revenue(TTM)2.31B
Net Income(TTM)344.31M
Analysts80
Price Target198.65 (22.07%)
Short Float %2.9%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)1.61%
PT rev (3m)2.5%
EPS NQ rev (1m)-13.21%
EPS NQ rev (3m)-14.03%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 18.06 | ||
| P/S | 2.93 | ||
| P/FCF | 28.35 | ||
| P/OCF | 16.17 | ||
| P/B | 3.38 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)8.21
EY5.04%
EPS(NY)9.01
Fwd EY5.54%
FCF(TTM)5.74
FCFY3.53%
OCF(TTM)10.06
OCFY6.18%
SpS55.52
BVpS48.21
TBVpS25.38
PEG (NY)2.45
PEG (5Y)0.96
Graham Number94.37
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 | 6.35 |
F-Score7
WACC9.39%
ROIC/WACC1.34
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 1Y4.04%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.58%
EBIT Next 3YN/A
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.
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 7 / 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 19.82 and the Price/Book (PB) ratio is 3.38.
How financially healthy is SIMPSON MANUFACTURING CO INC?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.