SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
177.46 USD
-1.95 (-1.09%)
177.46 USD
0 (0%)
Overall SSD gets a fundamental rating of 6 out of 10. We evaluated SSD against 42 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. 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.
- SSD had positive earnings in each of the past 5 years.
- 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.
- SSD has a better Return On Equity (17.16%) than 64.29% of its industry peers.
- SSD's Return On Invested Capital of 12.57% is fine compared to the rest of the industry. SSD outperforms 69.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SSD 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's Profit Margin of 14.90% is fine compared to the rest of the industry. SSD outperforms 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.
- 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 97.62% 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
- 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.
- Compared to 5 years ago, SSD has less shares outstanding
- SSD has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.74 indicates that SSD is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.74, SSD is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of SSD (1.55) is better than 80.95% of its industry peers.
- SSD has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- SSD has a Debt to Equity ratio of 0.17. This is in the better half 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 | 6.74 |
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.
- SSD has a better Current ratio (3.35) than 83.33% of its industry peers.
- SSD has a Quick Ratio of 1.88. 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 1.88, SSD is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| 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.
- Measured over the past years, SSD shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
- Looking at the last year, SSD shows a small growth in Revenue. The Revenue has grown by 4.26% in the last year.
- SSD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.45% yearly.
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 8.99% 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 4.80% on average per year.
EPS Next Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.27%
Revenue Next 3Y4.8%
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
- The Price/Earnings ratio is 21.62, which indicates a rather expensive current valuation of SSD.
- SSD's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SSD is valued a bit cheaper.
- The Price/Forward Earnings ratio is 19.85, which indicates a rather expensive current 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 25.83, SSD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SSD.
- SSD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.8 | ||
| EV/EBITDA | 14.01 |
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)2.72
PEG (5Y)1.05
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.62%, SSD is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.66, SSD has a dividend in line with its industry peers.
- With a Dividend Yield of 0.62, SSD pays less dividend than the S&P500 average, which is at 1.82.
| 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 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
- SSD pays out 13.76% of its income as dividend. This is a sustainable payout ratio.
- SSD's earnings are growing more than its dividend. This makes the dividend growth 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 3 / 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.