SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
167.18 USD
+0.57 (+0.34%)
167.18 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 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. This makes SSD very considerable 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 Return On Assets of 11.31%. This is in the better half of the industry: SSD outperforms 76.19% of its industry peers.
SSD has a better Return On Equity (17.16%) than 64.29% 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 69.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 12.61%.
| 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.
SSD has a better Operating Margin (19.35%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of SSD has grown nicely.
SSD has a Gross Margin of 46.02%. This is amongst the best in the industry. SSD outperforms 97.62% 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 | 19.35% | ||
| 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.
Compared to 1 year ago, SSD has less shares outstanding
Compared to 5 years ago, SSD has less shares outstanding
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.45 indicates that SSD is not in any danger for bankruptcy at the moment.
SSD has a better Altman-Z score (6.45) than 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.
SSD has a better Debt to FCF ratio (1.55) than 80.95% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SSD is not too dependend on debt financing.
SSD has a better Debt to Equity ratio (0.17) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.45 |
ROIC/WACC1.42
WACC8.86%
2.3 Liquidity
A Current Ratio of 3.35 indicates that SSD has no problem at all paying its short term obligations.
The Current ratio of SSD (3.35) is better than 85.71% 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.
SSD has a Quick ratio of 1.88. This is in the better half 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
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.
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.
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
Based on estimates for the next years, SSD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.99% on average per year.
The Revenue is expected to grow by 4.88% on average over the next years.
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
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
The Price/Earnings ratio is 20.36, 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 valuation a bit cheaper than the S&P500 average which is at 26.92.
The Price/Forward Earnings ratio is 18.70, which indicates a rather expensive current valuation of SSD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSD is on the same level as its industry peers.
SSD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 18.7 |
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 | 29.01 | ||
| EV/EBITDA | 13.06 |
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 decent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)0.99
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 0.72, SSD has a dividend in line with its industry peers.
With a Dividend Yield of 0.70, SSD pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
SSD pays out 13.76% 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.
DP13.76%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
167.18
+0.57 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change-3.41%
Ins Owners0.24%
Ins Owner Change-0.47%
Market Cap6.93B
Revenue(TTM)2.31B
Net Income(TTM)344.31M
Analysts77.5
Price Target198.65 (18.82%)
Short Float %2.64%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)0%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.03%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 18.7 | ||
| P/S | 3 | ||
| P/FCF | 29.01 | ||
| P/OCF | 16.55 | ||
| P/B | 3.45 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 13.06 |
EPS(TTM)8.21
EY4.91%
EPS(NY)8.94
Fwd EY5.35%
FCF(TTM)5.76
FCFY3.45%
OCF(TTM)10.1
OCFY6.04%
SpS55.74
BVpS48.4
TBVpS25.48
PEG (NY)2.56
PEG (5Y)0.99
Graham Number94.55
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 | 6.45 |
F-Score7
WACC8.86%
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 Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue 1Y (TTM)4.26%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%6.19%
Revenue Next Year5.11%
Revenue Next 2Y4.38%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
EBIT growth 1Y4.04%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year25.17%
EBIT Next 3Y14.03%
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 20.36 and the Price/Book (PB) ratio is 3.45.
How financially healthy is SIMPSON MANUFACTURING CO INC?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.