SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - NYSE:SSD - US8290731053 - Common Stock
178.36 USD
+2.42 (+1.38%)
We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 41 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. SSD is valied quite expensively at the moment, while it does show a decent growth rate. This makes SSD very considerable for quality investing!
1. Profitability
1.1 Basic Checks
SSD had positive earnings in the past year.
SSD had a positive operating cash flow in the past year.
In the past 5 years SSD has always been profitable.
SSD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SSD has a Return On Assets of 11.15%. This is in the better half of the industry: SSD outperforms 75.61% of its industry peers.
SSD has a better Return On Equity (17.12%) than 65.85% of its industry peers.
With a decent Return On Invested Capital value of 12.79%, SSD is doing good in the industry, outperforming 70.73% 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 12.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROIC | 12.79% |
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 14.53%, SSD is doing good in the industry, outperforming 75.61% of the companies in the same industry.
SSD's Profit Margin has improved in the last couple of years.
SSD has a better Operating Margin (19.62%) than 80.49% of its industry peers.
SSD's Operating Margin has improved in the last couple of years.
SSD's Gross Margin of 46.13% is amongst the best of 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 | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SSD 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
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.67 indicates that SSD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.67, SSD belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
SSD has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as SSD would need 2.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.30, SSD is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
SSD has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
SSD has a better Debt to Equity ratio (0.18) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 6.67 |
ROIC/WACC1.33
WACC9.61%
2.3 Liquidity
A Current Ratio of 3.37 indicates that SSD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.37, SSD belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
SSD has a Quick Ratio of 1.80. This is a normal value and indicates that SSD is financially healthy and should not expect problems in meeting its short term obligations.
SSD's Quick ratio of 1.80 is amongst the best of the industry. SSD outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.95% in the past year.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)0.51%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%6.93%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%5.71%
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 8.98% on average per year.
The Revenue is expected to grow by 4.90% on average over the next years.
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.75%
Revenue Next 2Y4.9%
Revenue Next 3YN/A
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.
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
SSD is valuated rather expensively with a Price/Earnings ratio of 22.75.
The rest of the industry has a similar Price/Earnings ratio as SSD.
When comparing the Price/Earnings ratio of SSD to the average of the S&P500 Index (27.69), we can say SSD is valued inline with the index average.
The Price/Forward Earnings ratio is 19.76, 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 19.76 |
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 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.53 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SSD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)1.1
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, SSD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.25, SSD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 14.26% 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.
DP14.26%
EPS Next 2Y8.98%
EPS Next 3YN/A
NYSE:SSD (10/21/2025, 1:13:07 PM)
178.36
+2.42 (+1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change0.02%
Ins Owners0.24%
Ins Owner Change0.1%
Market Cap7.42B
Analysts80
Price Target195.5 (9.61%)
Short Float %2.61%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.26%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.48%
Min EPS beat(2)8.03%
Max EPS beat(2)16.92%
EPS beat(4)3
Avg EPS beat(4)4.84%
Min EPS beat(4)-8.04%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)0%
EPS beat(12)8
Avg EPS beat(12)10.83%
EPS beat(16)11
Avg EPS beat(16)14.36%
Revenue beat(2)2
Avg Revenue beat(2)2.6%
Min Revenue beat(2)0.96%
Max Revenue beat(2)4.24%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)4.24%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)2.1%
Revenue beat(16)11
Avg Revenue beat(16)1.73%
PT rev (1m)0.88%
PT rev (3m)4.17%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)0%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 19.76 | ||
| P/S | 3.26 | ||
| P/FCF | 45.53 | ||
| P/OCF | 21.1 | ||
| P/B | 3.85 | ||
| P/tB | 7.65 | ||
| EV/EBITDA | 14.05 |
EPS(TTM)7.84
EY4.4%
EPS(NY)9.03
Fwd EY5.06%
FCF(TTM)3.92
FCFY2.2%
OCF(TTM)8.45
OCFY4.74%
SpS54.65
BVpS46.37
TBVpS23.31
PEG (NY)2.39
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROCE | 17.22% | ||
| ROIC | 12.79% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 23% | ||
| OM | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% | ||
| FCFM | 7.17% |
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%
ROICexcg growth 3Y-9.49%
ROICexcg 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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 214.26% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 49.35% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 6.67 |
F-Score5
WACC9.61%
ROIC/WACC1.33
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)0.51%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%6.93%
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.95%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%5.71%
Revenue Next Year4.75%
Revenue Next 2Y4.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.67%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-23.26%
OCF growth 3Y30.75%
OCF growth 5Y10.45%