SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
182.25 USD
-4.04 (-2.17%)
182.25 USD
0 (0%)
SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. SSD gets an excellent profitability rating and is at the same time showing great financial health properties. SSD is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make SSD suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year SSD was profitable.
- In the past year SSD had a positive cash flow from operations.
- In the past 5 years SSD has always been profitable.
- Each year in the past 5 years SSD had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.31%, SSD is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
- With a decent Return On Equity value of 17.16%, SSD is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- With a decent Return On Invested Capital value of 12.57%, SSD is doing good in the industry, outperforming 69.05% of the companies in the same industry.
- SSD had an Average Return On Invested Capital over the past 3 years of 15.07%. This is above the industry average of 12.68%.
| 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
- SSD has a better Profit Margin (14.90%) than 78.57% of its industry peers.
- SSD's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 19.35%, SSD is in the better half of the industry, outperforming 78.57% 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 46.02%, SSD belongs to the best of the industry, outperforming 97.62% 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 | 19.35% | ||
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SSD is still creating some value.
- SSD has less shares outstanding than it did 1 year ago.
- 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
- SSD has an Altman-Z score of 6.90. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
- SSD has a Altman-Z score of 6.90. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
- SSD has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.55, SSD belongs to the best of the industry, outperforming 80.95% 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.
- SSD's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. SSD outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.9 |
ROIC/WACC1.4
WACC8.98%
2.3 Liquidity
- A Current Ratio of 3.35 indicates that SSD has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.35, SSD belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.88 |
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.
- The Revenue has been growing slightly by 4.26% in the past year.
- 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
- SSD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
- SSD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.88% yearly.
EPS Next Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.38%
Revenue Next 3Y4.88%
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.
- 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
- The Price/Earnings ratio is 22.20, which indicates a rather expensive current valuation of SSD.
- SSD's Price/Earnings is on the same level as the industry average.
- SSD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 20.38, which indicates a rather expensive current valuation of SSD.
- The rest of the industry has a similar Price/Forward Earnings ratio as SSD.
- SSD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
- SSD's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SSD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.63 | ||
| EV/EBITDA | 14.54 |
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.
- The decent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.08
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- SSD has a yearly dividend return of 0.62%, which is pretty low.
- SSD's Dividend Yield is comparable with the industry average which is at 0.67.
- Compared to an average S&P500 Dividend Yield of 1.82, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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
- 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 2Y8.46%
EPS Next 3Y8.99%
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.
Can you provide the valuation status for SIMPSON MANUFACTURING CO INC?
ChartMill assigns a valuation rating of 2 / 10 to SIMPSON MANUFACTURING CO INC (SSD). This can be considered as Overvalued.
What is the profitability of SSD stock?
SIMPSON MANUFACTURING CO INC (SSD) has a profitability rating of 7 / 10.
What is the financial health of SIMPSON MANUFACTURING CO INC (SSD) stock?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.
Can you provide the expected EPS growth for SSD stock?
The Earnings per Share (EPS) of SIMPSON MANUFACTURING CO INC (SSD) is expected to grow by 7.94% in the next year.